The rapid jump in diesel fuel prices following the American and Israeli attack on Iran, coming four years after the Russian invasion of Ukraine, has fleet operators taking another look at switching to electric propulsion for freight vehicles. Over the past five years, South Africa has shifted from pilot projects to a targeted rollout of electric freight vehicles in urban logistics, last- mile delivery and key long-haul corridors. The shift is due to lower operating cost differences, major OEM pilot projects and targeted policy and infrastructure efforts, according to the 2025 GreenCape electric vehicle market intelligence report. Mobility Foresights says: “Logistics and e-commerce companies are leading the charge toward fleet electrification. “Increasing demand for sustainable last-mile delivery solutions is driving rapid adoption of electric vans and light-duty trucks. “These vehicles provide cost savings through lower fuel and maintenance costs, while also meeting regulatory and corporate sustainability goals.” Adoption is strongest in public transport and last-mile logistics, where operational efficiency and emission reductions deliver significant benefits. Battery innovations, charging infrastructure investments and fleet management technologies are making electric commercial vehicles (ECVs) more practical and cost competitive. “Fleet operators are investing in charging depots and energy management solutions to support large-scale deployments,” according to the report. “This trend underscores the strategic importance of ECVs in reshaping the logistics and delivery ecosystem. The market is expected to grow to 1 000 vehicles by 2030, with a value of R1.43 billion. The growth is driven by factors such as increasing affordability, rising fuel costs, pressure for decarbonisation, government incentives and improved infrastructure, which make ECVs a more attractive and feasible option for the freight and logistics sectors, according to GreenCape. Increasing charging infrastructure is critical to Vehicles the success of ECVs. Significant grid upgrades are required, especially for large-scale fleet-level charging, as in the case of freight and logistics, last-mile delivery and public transport fleets, the report points out. “The charging of these ECV fleets will be concentrated at depots and distribution centres, which would necessitate grid upgrades at these sites.” There is, as yet, no clear way forward. “Municipal utilities may implement load curtailment or advise staggered or scheduled charging to minimise the scale of grid upgrades required. “Commercial fleets may investigate the feasibility of smaller distributed depots and distribution centres located closer to demand zones for public transport, last-mile delivery and freight and logistics to minimise the demand on the grid.” GreenCape sees the challenge as an investment opportunity. “First- and middle-mile logistics present significant potential for electrification due to their structured routes, shorter distances and high operational demand in urban areas. “Reducing costs in these segments could influence between 37% and 55% of the overall logistics costs,” it says. Car Track estimates that first-mile delivery involving the movement of manufactured goods from the factory to a storage warehouse or distribution centre accounts for approximately 12% to 20% of the total delivery cost. Middle-mile delivery, which moves goods from the warehouse to the retail outlet, accounts for 25% to 35% of total delivery costs. Electrifying these stages of logistics could lead to substantial cost savings and operational efficiency across the entire supply chain, says GreenCape. ER
