The number of electric freight vehicles (EVs) on U.K. roads grew 31% in the last 12 months, but still represents only 1.4% of all commercial vehicles. The number of electric trucks and vans delivering freight in the U.K. increased to 88,787 in the last year compared to 67,678 in the previous 12 months, according to research from supply chain consulting firm Inverto, part of BCG. But that remains a fraction of the total 6.2 million freight vehicles in the U.K.

“The expansion of the commercial EV sector is expected to continue slowly,” said Kiren Pandya, principal at Inverto, in a July 7 statement. “Given the higher prices of EV vehicles, the cost of financing has become a key barrier to adoption, despite the growing number of green policy initiatives, such as the pledge to reach net-zero emissions by 2035.”

Pandya said there are other practical challenges slowing the transition, including limitations to current battery technology that mean there are very few options for switching heavy goods vehicles (HGVs) to electric. The number of electric HGVs is just 0.02 % of all HGVs, she said.

“While many fleet companies are encouraged or even required to transition to commercial EVs as part of their contractual obligations with clients following strong sustainability policies, the broader uptake remains slow.”

Another factor is the weakening legislative landscape that seems to be backing off financial and other incentives to switch. The U.K. government is indicating that it will lower its EV adoption goals as industries reassess their emissions targets. This means that EV adoption will likely remain low, Inverto said.