🚚 The application prospects of electric trucks in the logistics industry in Hong Kong (Editor's in-depth observation)

In recent years, Hong Kong's logistics industry has faced several key transformation pressures:

• Environmental protection and emission reduction requirements (government carbon neutrality goals)
• Fluctuating fuel costs
• Urban environmental pollution and traffic restrictions

Electric trucks (including light trucks under 3.5 tons, medium-sized box trucks, and refrigerated trucks) are becoming a hot topic of discussion within the industry. Having long observed trends in Hong Kong's transportation, express delivery, and retail distribution industries, and having spoken with several colleagues in fleet management, I would like to analyze the current state of electric trucks in Hong Kong and their future prospects .

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1️⃣ Why is the Hong Kong logistics industry paying attention to electric trucks?

① Environmental protection and regulatory pressure

• The government's "Hong Kong Climate Action Blueprint 2050" states that all road transport will be zero-emission by 2050.
• In the future, it is possible that like in Europe and Japan, "low emission zones" (LEZs) will be set up in city centers to restrict the entry of diesel trucks.

② Cost considerations

• Although electric trucks are more expensive than diesel trucks, the electricity costs are much lower than the cost of diesel.
• Based on CLP's midnight electricity price of $0.98/kWh, the electricity cost per kilometer may be only 30%-40% of that of diesel.

③ Brand image

• International brands (such as DHL, SF Express, and IKEA Hong Kong) have begun trialing electric trucks to demonstrate their ESG (environmental, social, and governance) commitment.

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2️⃣ Current Status of Electric Trucks in Hong Kong (2025)

The editor has compiled some local current situation data:

📌 Editor's observation:

• The number of electric trucks in Hong Kong is still less than 500 , mainly concentrated in large logistics companies and government departments for trial use.
• Most small and medium-sized logistics companies are still waiting and watching due to high vehicle prices and insufficient infrastructure .

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3️⃣ Technical and operational challenges

Although electric trucks have potential, they still face many practical problems in their implementation in Hong Kong.

① Battery life limit

• Urban delivery: 150-250 km of range is basically sufficient.
• Long-distance inter-district travel between New Territories, Kowloon and Hong Kong Island: If you need to make multiple trips throughout the day, you may need to recharge the battery midway.
• Refrigerated trucks consume a lot of electricity, and their range will be further reduced by 20%-30%.

② Charging infrastructure

• Most logistics warehouses are located in the New Territories (Kwai Chung, Tuen Mun, and Yuen Long), and multiple 30-60kW DC fast charging piles need to be installed in the warehouses.
• There are almost no dedicated parking spaces for trucks at public fast-charging stations, and parking space is insufficient.

③ Vehicle cost and depreciation

• A 3.5-ton electric truck costs about $450,000-$600,000 , which is 50%-70% more expensive than the diesel version.
• The battery life is 6-8 years and the replacement cost can reach $150,000 - $200,000 .

④ Load and space

• The weight of the battery takes up part of the load capacity.
• Hong Kong's logistics industry sometimes requires "full load + tight deadlines", and weight restrictions can affect efficiency.

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4️⃣ Government policies and funding

The Hong Kong government has launched a number of support programs:

New Energy Transportation Fund (NETF)

• Subsidize companies to trial electric trucks, with the maximum subsidy amount reaching 50% of the vehicle price.
• Submission of operational data is required, and the maximum probation period is two years.

One-for-one plan

• It mainly targets private cars and does not currently fully cover trucks, but the industry is striving to expand it to commercial vehicles.

tax incentives

• First Registration Tax (FRT) exemption.
• Commercial vehicle depreciation can be accelerated for tax purposes.

📌 Editor's Take:
Although there is funding, the initial capital expenditure is still a big pressure for small and medium-sized logistics companies, and they need low-interest financing to make large-scale purchases.

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5️⃣ Cost comparison (taking urban delivery as an example)

I used a rough calculation of a 3.5-ton diesel truck vs. an electric truck (assuming 150 kilometers of driving per day, 300 days a year):

📌 Editor's analysis:

• Although electric trucks are expensive upfront, their energy and maintenance costs are low, and the total cost over five years is almost the same .
• With government funding, electric trucks can even pay back their investment within 3-4 years.

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6️⃣ Suitability of application scenarios

The editor believes that Hong Kong electric trucks are most suitable for the following scenarios:

✅ High fit

• Urban express delivery (SF, DHL)
• Daily replenishment of supermarkets and convenience stores (7-Eleven, Watsons)
• Home delivery (IKEA)
• Short-distance transportation for government departments (postal services, environmental protection agencies)

⚠ Moderately suitable

• Long-distance delivery across the New Territories (requiring fast charging or changing vehicles midway)
• Refrigerated food delivery (requires large-capacity batteries)

❌ Not suitable for now

• Heavy freight (>16 tons)
• Long-term, high-intensity transportation (such as construction materials and cross-border freight)

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7️⃣ Future Development Prospects (2025-2035)

The editor predicts based on the current situation:

Short-term (1-3 years)

• Large logistics companies will continue to pilot electric vehicles, with 5%-10% of their fleets electrified.
• The government may introduce a "one-for-one" subsidy for commercial vehicles.

Mid-term (3-7 years)

• Charging infrastructure is well-developed in the New Territories Logistics Area, with fast charging time reduced to under 30 minutes.
• The proportion of electrification of medium-sized trucks (5-8 tons) has increased significantly.

Long-term (7-10 years)

• Low emission zones may be implemented in Hong Kong's urban areas, with diesel trucks subject to additional charges or even banned from entering.
• Heavy-duty electric trucks and hydrogen trucks have begun commercialization, covering cross-border and heavy-load routes.

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8️⃣ Editor’s opinions and suggestions

The editor believes that the prospects for electric trucks in Hong Kong's logistics industry are "gradually optimistic." However, to achieve widespread adoption, three key issues must be addressed:

1. Infrastructure : Build dedicated fast-charging stations for trucks at major logistics hubs (Kwai Chung Container Terminal, Yuen Long Industrial Area, Tuen Mun, and the airport).
2. Cost : The government needs to provide more subsidies or tax incentives to lower the barriers to transformation for small and medium-sized logistics companies.
3. Technology : Improve battery energy density and refrigerated truck energy-saving technology to extend driving range.

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📌 Editor's Summary

The greatest value of electric trucks to Hong Kong's logistics industry lies in urban delivery and brand enhancement . They may not completely replace diesel heavy trucks in the short term, but as policies tighten and energy prices fluctuate, companies that trial them early will have an advantage in future competition .

The logistics industry needs to keep up with the trend, not just for environmental protection, but also to survive in the future regulatory and cost environment.