E-Mobility at the Doorstep of Domestic Logistics

In Hungary, e-mobility is mostly associated with the electrification of passenger vehicles, though it holds significant potential for the logistics sector, as well. It's no coincidence that major manufacturers are showcasing e-trucks and e-vans at international trade fairs, while, in Hungary, the market is only beginning to shape up in this area.

A fresh study, which was conducted with the participation of 150 Hungarian companies, reveals that industry players view the greening of freight transport as inevitable, with expectations that the share of e-vehicles in Hungarian logistics will grow within five years. The participating companies also reported a commitment to sustainable operations: every second one regulates its CO2-emission, and several already use solar power for renewable energy production. However, they lack sufficient information and human resources for the transition, which, at present, would only provide an additional task that must also make economic sense.

"Although some logistics companies already offer green delivery, most of them are still hesitant to make this investment. In the next few years, we're almost certain to see major changes, with more e-vans appearing in urban freight transport. To support this, companies will soon need a complex charging infrastructure, efficient fleet management, as well as supporting solutions," summarized Levente Balasa, Head of Siemens Zrt.'s Smart Infrastructure division.

State support could provide momentum
Nearly 10% of the surveyed companies currently use electric vehicles, primarily for company cars, administrative fleets, or onsite goods handling. However, future growth looks promising, with 20% of companies having clear development plans for e-mobility, and half of these planning to implement them within three years.

State subsidies could further strengthen these development plans. Half of the companies with financial barriers to the transition stated that they would consider investing in e-mobility in case suitable support were available, estimating the required funding at about two-thirds of infrastructure costs.

Focus on solar energy and last-mile delivery
Beyond sustainability commitments, some companies noted that they are unable to fully utilize their solar power plants, since the electricity generated by them cannot be fed back into the public grid. Using this green energy for e-charging could be a solution for them, especially when microgrid and load management technologies are accompanied.

The research highlighted that the primary focus of electrification will not be on the long-distance, heavy freight transport. Currently, using commercial e-vehicles is more feasible in urban, short-distance logistics, which involves frequent stopping and restarting. Additionally, decarbonizing this segment would improve urban air quality and reduce noise pollution.

What’s holding companies back?
Most respondents cited high investment costs as the biggest deterrent, which they generally cannot incorporate into their pricing. Only companies with multinational clients are finding partners willing to absorb extra costs for eco-friendly transport, despite Hungarian clients' commitment to sustainability.

The technical challenges of installing and operating charging infrastructure, as well as operational costs, could also deter companies. The return on investment is a critical consideration for company decision-makers.

The fast-paced growth of the Western European market might provide answers to these questions, as e-truck charging infrastructure is being developed. High-power chargers are spreading, an increasing number of logistics companies are deploying e-commercial vehicles, and in Austria, public charging points suitable for e-trucks are already available.

The research was conducted by Trend International Market Research Kft. on behalf of Siemens Zrt. in August 2024, involving deep interviews and telephone surveys with decision-makers in Hungarian logistics companies involved in e-mobility.