Volvo backs switch to battery electric trucks
Innovative financing accelerates transition for heavy-duty trucking fleets
One of Australia’s largest onshore vehicle manufacturers, Volvo Group, is using CEFC finance to help encourage operators and businesses to switch medium and heavy-duty trucking fleets to battery electric vehicles.
$70 million
CEFC commitment
Discounted
leasing
Electric
trucking fleets
Leadership today means driving real change - and this new work with CEFC will help lead the industry’s shift to lower-emission freight across Australia. Our customers are ready to make the transition, and this initiative significantly expands where that’s possible.David BertiniDirector Sales and Market Development, Volvo Financial Services
Our investment
The CEFC has committed $70 million to Volvo Group to address transport-related emissions by accelerating the electrification of the nation’s trucking fleet.
The CEFC finance, which targets heavy-duty battery electric vehicles (HD BEVs), is aimed at making the transition more affordable and includes:
- A 0.5 per cent discounted rate for eligible Volvo customers to lease medium and HD BEVs and install electric vehicle charging infrastructure
- An innovative residual value support mechanism to reduce operating lease costs and support future value of HD BEVs.
This innovative transaction demonstrates how fleet operators can work with manufacturers and financiers to accelerate the transition to electrification. Reducing some of the financial risk associated with new technologies like Battery Electric Trucks and offering a competitive finance discount, helps lower the premium associated with this new technology.Richard LovellExecutive Director, CEFC
OUR IMPACT
Tackling transport emissions
The Australian economy relies on the logistics and freight sector to transport goods across the nation. However, transport accounts for up to 22.3 per cent of Australia’s national emissions.1 As other sectors of the economy decarbonise, transport is set to become Australia’s largest source of emissions by 2030.2
Road transport makes up 84 per cent of all transport emissions3 and battery electric trucks represent a substantial opportunity to decarbonise the sector. However, cost of entry is a major barrier for many wanting to take steps towards implementing transport solutions in their businesses.
Reducing risks associated with new technologies
The CEFC and Volvo Group are demonstrating how fleet operators can work with manufacturers and financiers to accelerate the transition.
Innovative CEC finance is reducing some of the risk associated with new technologies, such as battery electric trucks, and offering a competitive finance discount helps lower the premium associated with the technology. Sharing the risk aligns lenders, manufacturers and end customers in building momentum to help decarbonise the transport sector.
Manufactured in Australia for Australian conditions
Volvo Group has committed to manufacture Volvo electric trucks at its Queensland production facility as part of its broader sustainable manufacturing plans. The company has produced more than 80,000 trucks since it began manufacturing at Wacol in 1972.
1. Climateworks, Decarbonising Australia’s transport sector: Diverse solutions for a credible emissions reduction plan, June 2024.
2. Australian Government, Department of Climate Change, Energy, the Environment and Water, Australia’s National Greenhouse Accounts, 2024.
3. Australian Government, Department of Infrastructure, Transport, Regional Development and the Arts, Australian infrastructure and transport statistics yearbook 2023, Transport Energy and Environment.
