Volvo is already selling electric trucks here but is frustrated by different regulations in each state

Volvo wants to build electric trucks in Brisbane by 2027 but Australia needs a uniform national strategy to encourage the vehicles’ uptake, the company’s chief executive says.

Volvo's FH electric truck running between Brisbane and Canberra.

Electric-powered truck uptake in Australia needs a national strategy, says Sweden-based Volvo Group’s chief executive, Martin Lundstedt.

Mr Lundstedt said policies of some states were changing to encourage more use of the electric-powered heavy vehicles, such as recognition that electric trucks were heavier than diesel-fuelled trucks because of their batteries.

But he said the industry needed a national strategy to set the same standards across the country, increase the financial incentives for customers to buy the vehicles and encourage the rollout of the charging infrastructure.

“We need a policy framework to make it happen,” he said.

The company, which is now separate from the Chinese-owned Volvo car company, and produces the truck brands Volvo, Mack, and UD, began selling electric trucks in Australia last year.

It plans to manufacture electric trucks at its Brisbane factory by 2027.

But Mr Lundstedt said customers needed financial incentives to buy electric trucks as they were currently more expensive, although cheaper to run than their diesel counterparts.

He said the industry needed incentives to develop because of the “low volumes to start with”.

Mr Lundstedt said incentives were also needed to build the charging infrastructure for nationally.

He said there needed to be a switch to policies which reduced per-kilometre charges for electric trucks – as was the case in Europe – which recognise that trucks were used around the clock.

Mr Lundstedt said the company’s electric trucks were initially not able to operate in some Australian states because they were regarded as being too heavy, due to the battery putting more weight on the front steering axle.

But he said policies were changing and the Queensland government recently announced a zero emission heavy vehicle network map which showed the major roads where electric trucks could operate.

He said policies were also changing in Victoria and NSW to encourage more use of electric trucks.

“Last year trucks were barely referenced in the National Electric Vehicle Strategy in Australia,” he said. “But now we are seeing real support at a state and national level in the way of changes to regulation.

Volvo Group chief executive Martin Lundstedt.

Mr Lundstedt said the Australian Renewable Energy Agency (ARENA) was supporting Team Global Express to do the largest trial of electric logistics vehicles in Australia, involving the purchase of 36 Volvo electric trucks and the development of charging infrastructure using renewable energy.

He said the Queensland government’s new Zero Emission Heavy Vehicle Network Map had encouraged Queensland-based transport company Followmont Transport to receive its first FH electric truck this month.

Australia was now one of the top five markets in the world for Volvo’s trucks which supply the transport, construction, mining, and agriculture sectors, Mr Lundstedt said.

Listed on the Swedish stock exchange, the company has an annual turnover of more than $US55bn.

Mr Lundstedt said Australia’s large land mass meant that its logistics business played a key role in the economy.

Its Brisbane factory produced 3600 trucks last year – a record year in terms of market share and Volvo trucks now made up about 27 per cent of the Australian market.

He said there was now a recognition from state and federal governments that the nation needed to move away from using fossil fuel-based trucks to ones which were based on renewable energy – and potentially hydrogen power.

Mr Lundstedt said Volvo was having a “positive dialogue” with state governments and other authorities over their policies.

“But we hope there will be a national strategy for trucks in particular,” he said.

He said Australia had a “fantastic opportunity” to develop its renewable energy as well as to develop the use of hydrogen power.