How BPI are supporting the transition to electric HGV fleets with asset disposal solutions

BPI, a leading asset disposal specialist, is finding that more fleet managers are choosing asset disposal solutions to help them dispose of unwanted HGVs as they transition to low-emission and electric alternatives in line with the UK’s net zero targets.

This transition is driven by the impending HGV diesel ban, which mandates that all new HGVs in the UK be zero-emission by 2040. Smaller HGVs weighing under 26 tonnes are required to make the switch by 2035 as part of the UK’s commitment to reduce carbon emissions.

The UK is the first country to commit to such goals, but there are significant challenges that could create ripple effects and potentially derail progress.

Kevin Gardner, Commercial Manager at BPI Asset Disposal Solutions, said: “As the commercial vehicle sector works towards its low-carbon goals, the role of asset disposal specialists can help fleet managers dispose of unwanted diesel HGVS safely and efficiently. With the continued growth in new, low-emission and electric HGVs, the depreciation of existing vehicles is expected to accelerate further, making timely disposal a critical consideration for haulage companies.”

Businesses of all sizes are recognising the need to modernise their fleet, with early transitioners such as Tesco, Amazon, Gist, John Lewis and Nestlé committing to electric HGVs. This comes after a widespread shift in companies aiming to achieve fully electric fleets by 2040, aligning with government targets for decarbonisation.

Kevin added: “We understand the challenges facing truckers and fleet managers in the shift towards net zero emissions. By partnering with an asset disposal specialist, fleet managers can maximise the value of their diesel assets through an online auction and generate capital to reinvest back into the business, all while making room for low-emission and electric alternatives.”

The urgency of the climate crisis is accelerating the shift to electric HGVs, but is the UK prepared?

According to the UK Department for Transport, electric vehicle registrations increased in Q1 2023 compared to Q1 2022, showing progress towards lower emission alternatives. However, the actual number of vehicles is still low with just 0.5% of HGV registrations in 2023 being electric, according to SMMT.

While electric HGV fleets offer long-term savings, the upfront costs for new electric-powered heavy goods vehicles are much higher than diesel options. For instance, a diesel HGV tractor unit typically costs between £80,000 and £100,000, while electric HGVs generally range from £140,000 to £200,000. The exact price varies based on factors such as the model, body type, and mileage. However, electric HGVs tend to be more expensive upfront compared to diesel alternatives due to several key reasons, including the cost of battery production, technology development, and lower production volumes, which drive up the cost per unit.

Kevin added: “This increased investment needed for electric vehicles is resulting in fleet managers looking for ways to maximise the value of the diesel HGVs that they choose to sell. As a result, more are choosing asset disposal specialists because it is much quicker than traditional selling techniques, helped by the fact they handle everything from the initial valuation to the final sale. Not only does this facilitate a smooth transition to a low-emission or electric fleet, but it also provides unwanted HGVs with a second chance, contributing to the circular economy.”

In light of the existing infrastructure challenges, the eFreight 2030 consortium has been launched to enhance charging facilities along key truck and port routes, with plans to develop 32 charging bays and introduce 100 latest HGV tractor units.

For logistics and transport companies aiming to meet sustainability targets, electric HGV fleets are an effective way to lower carbon footprints and harmful pollutants, improving air quality in the process.

Kevin said: “An asset disposal partner is one of the best ways of helping you unlock significant financial value from used vehicles, which will help towards investment in fleet renewal.”

BPI Asset Disposal Solutions specialises in fast, hassle-free commercial asset disposal and can help businesses maximise the value of their surplus machinery and equipment, and complete the process in a matter of weeks.

Over the last 10 years, BPI has grown into one of the UK’s leading asset disposal specialists by offering tailored solutions.

BPI currently holds ISO 9001:2015 accreditation, the globally recognised standard for quality management. This important standard ensures BPI provides customers with a compliant and fair buying and selling processes.