High Costs of Electric Trucks Deter Adoption

Ryder's analysis reveals significant operational cost differences deterring companies from adopting electric trucks.

High Costs of Electric Trucks Deter Adoption

Recent Ryder System, Inc. findings reveal how the costs associated with building an electric fleet are a major barrier, impacting industry sentiment towards going electric.

  • The Cost Barrier: Despite environmental enthusiasm, the reality of transitioning to electric trucks hits hard financially.
    • Purchase Price: On average, the purchase price of electric trucks is triple that of diesel trucks.
    • Operating Expenses: Twice as expensive to operate as their diesel counterparts, with heavier trucks seeing even greater disparities.

Cost Comparisons:

  • Light-duty Trucks: A slight increase in annual costs.
  • Heavy-duty Trucks: Costs could double, making it tough for companies operating on thin margins.

Geographical Variance:

  • California vs. Georgia: Switching a mixed fleet could increase operating costs by 56% and 67%, respectively, pushing up inflation by up to 1% locally.

Industry Feedback:

  • Ryder CEO Robert Sanchez emphasized, “What surprised us was the magnitude of the gap.”
  • Despite fuel savings, the increased number of trucks and drivers needed offsets these advantages.

Future Outlook:
The journey toward cost-effective electric trucks depends on technological advances in battery efficiency. While companies wait for this evolution, they remain wary but watchful, balancing environmental goals with economic realities.

Source: Wall Street Journal

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