Volvo and DSV Strike a New Deal for 300 Electric HGVs

Danish logistics giant DSV has penned a new deal with Volvo Trucks, purchasing 300 electric heavy-duty vehicles, marking one of the largest commercial electric truck deals to date. 

This agreement forms part of DSV's ambitious strategy to deploy 2,000 electric trucks across its European operations by 2030, signalling a major shift in the logistics industry's actions towards reducing carbon emissions.

As things stand, the transport sector is responsible for approximately 30% of the EU's total CO2 emissions and has been under increasing pressure to decarbonise from regulators and consumers alike.

The view from the executives

Søren Schmidt, CEO of DSV Road, emphasised the strategic importance of this partnership:

"As a global leader in logistics, we strive to stay at the forefront of the green transition, and this agreement is a fantastic example of how new technologies can be brought to market at scale to make them more accessible for our customers."

The deal extends beyond the 300 electric trucks, including an additional 500 Volvo trucks with highly fuel-efficient diesel and gas powertrains. 

This balanced approach reflects the complex reality of transitioning to sustainable transport, where immediate carbon reduction must be weighed against operational efficiency.

Roger Alm, President of Volvo Trucks, explained the significance of the deal: "This order is proof of their trust in our company and shows that zero-exhaust emissions transport is a viable solution here and now." 

Volvo's commitment to sustainable transport is evident in their delivery of over 3,800 electric trucks to customers in 46 countries since 2019.

Scandinavian sustainability solutions

The collaboration between DSV and Volvo goes beyond a typical buyer-seller relationship. As the largest transporter of goods for the Volvo Group, DSV has already integrated electric trucks into its fleet in Sweden and Denmark. 

The company has established charging infrastructure at its distribution centres in both countries, all of which are powered by solar panels.

This deal comes at a time when the logistics industry is facing multiple challenges. Ongoing global supply chain disruptions, rising fuel costs, and the urgent need for decarbonisation are pushing companies to innovate.

DSV's investment in electric trucks not only addresses environmental concerns but also positions the company to better navigate future regulatory landscapes and potential carbon pricing mechanisms.

The costs and benefits of being a sustainability leader

Volvo’s range of electric HGVs are expensive, especially when compared to more traditional diesel-fuelled alternatives. Often priced between US$300,000–US$500,000, an investment the size of DSV’s could cost around US$150m – and that’s without accounting for the cost of charging infrastructure and accessories.

While the exact figures of the deal have not been disclosed, it's worth noting that DSV reported revenues of 79.5 billion Danish kroner (approximately US$11.6bn) for the first half of 2024, despite challenging market conditions. This robust financial performance underpins the company's ability to make substantial investments in sustainable technologies.

But the impact of this agreement extends beyond DSV and Volvo. By significantly increasing the number of electric trucks on European roads, the deal is likely to stimulate further investment in charging infrastructure and encourage other logistics companies to follow suit.

It also sends a strong signal to policymakers about the industry's readiness to embrace sustainable solutions, potentially influencing future regulations and incentives.

The challenges in electrifying the logistics industry

Transitioning to electric vehicles won’t be simple. Limited range, longer charging times and the need for extensive charging infrastructure remain barriers to widespread adoption. 

DSV's commitment to deploying 2,000 electric trucks by 2030 acknowledges these challenges while demonstrating confidence in the rapid advancement of electric vehicle technology, an advancement the company is helping to drive onwards.

Søren emphasised his confidence in DSV's vision, saying: "Close collaboration across sectors provides an opportunity for DSV to be a key enabler for decarbonisation in the industry. 

“We are happy to extend our partnership with Volvo in our joint effort to reduce emissions in the transport industry."

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