What You Need To Know About EV Delivery Trucks

Interview with Isuzu’s Brian Tabel

Switching to EVs can be a smart solution. However, costs, incentives, timelines and other factors can complicate purchase decisions.

Furniture World engaged Brian Tabel, assistant vice president of marketing at Isuzu Commercial Truck of America, to explain what retailers need to know about electric vehicles, specifically the medium-duty trucks used for furniture last-mile deliveries.

“The big trucking fleets and some large furniture retailers already understand how to purchase EVs,” he explained. Because many large, public-facing companies have set sustainability goals for carbon neutrality, they’ve shown the most interest in EVs. I believe the level of interest beyond that group is about to expand.

“Right now, internal combustion engine (ICE) vehicles are an excellent option for furniture retailers. Any switchover will likely take decades, but EV last-mile delivery trucks make sense for some retailers, depending on many factors we will discuss.”

A Good Fit

“There has been some anxiety surrounding electric trucks due to cost, available infrastructure and the timing of government mandates. Still, EVs are a good fit for furniture retailers. That’s because final mile trucks, unlike larger, long-haul trucks,” he explained, “don’t run hundreds of miles a day and generally don’t make deliveries in the middle of the night, leaving ample time for charging. And they are much more efficient than ICE trucks in terms of operation and maintenance.”

Price

“It’s true that the purchase price of an EV is considerably higher than the typical ICE vehicle. However, that can be offset by state, county, and city government incentives, not only for the truck but also for charging equipment and infrastructure. Sometimes, the all-in purchase price can be lower than for an ICE vehicle. For example, an $80,000 incentive might be offered in Anaheim, California, but in Orange, California, less than eight miles away, it might be $50,000. It’s complicated, so we are working on a tool to tally the city, county and state incentives for vehicles domiciled in various locations.

“One unknown concern for retailers considering purchasing an EV is how long the incentives will continue to be available to help offset most purchases. Government entities allocate a set amount to fund programs, but as more customers move to EVs, the pool of money gets depleted faster.”

Right-Sizing

“Purchasing an EV delivery truck is more complex than many retailers know,” Tabel explained. An ICE vehicle might get 35 miles per gallon under various conditions. With an EV, any power draw on the truck, including turning on the heated seat or running air conditioning, has an impact.

“Right-sizing EV trucks requires choosing an appropriate battery pack for the job at hand. For example, Isuzu offers four battery options, ranging from 60 to 180 kilowatts. Generally, delivery trucks not driving long distances need smaller, less costly battery configurations.

“An advantage that furniture retailers have is that delivery loads are much lighter than those carried, for example, on beverage trucks. That means furniture loads don’t run at full GVW (total truck weight, including payload). Topography and climate are more important factors. Model purchase decisions, therefore, need to be based on questions such as, ‘Will furniture deliveries be made to homes in the hills of San Francisco or in Miami, Florida? Will heated seats or air conditioning be running full-time?’ Ambient temperature impacts EV batteries similarly to how it affects cell phone batteries. Recharging ability is affected by extreme cold. Also, hot weather can affect an EV battery’s ability to hold a charge.

“The right truck has to fit the conditions and routes it travels. That usually involves detailed conversations between retailers and local truck dealers.”

Operation Costs

It’s been estimated that EV trucks incur 30 to 50% fewer maintenance expenses than diesel vehicles, assuming proper battery maintenance.

“Depending on government incentives, the payback period is accelerated by lower maintenance needs for EV delivery vehicles, said Tabel. Tires will likely be the biggest maintenance expense. There’s no oil to change, no transmission, and no air filters other than for HVAC.”

Charging Station Standards

“Currently, there aren’t formal standards for charging station hookups. Tesla has the largest network of chargers across the U.S. and Canada. Ford and Rivian use the Tesla charger, and I think more car companies will move in that direction over time. Large trucks require more power and will have their own adapters,” he said, “but our N-Series EVs used for last-mile delivery trucks use a car-type charger.

“The problem with most charging stations today is that they have car-sized parking spaces. Pulling up in a 24-foot furniture truck to one of these stations isn’t feasible. Over the past two years, however, we have seen more drive-through charging stations suitable for trucks become available.

“Retailers will need to install their own charging stations. An overnight trickle charge results in a deeper charge. So-called hotshot charges, which take a battery from 20% to 80% in 30 to 45 minutes, shorten battery life.

“To make charger installation easier, Isuzu has partnered with ChargePoint, which has the most extensive charging infrastructure in the U.S. and Canada. They do site surveys and estimate the electrical usage needed. The company also recommends appropriate chargers and works with power companies to install them at retail locations.”

“EV truck sales to furniture retailers will be propelled by emissions mandates originating by the California Air Resources Board (CARB) and on the national level by the EPA.”

Government Mandates

“In California, regulations dictate that truck manufacturers must sell a certain number of zero-emission vehicles,” Tabel noted. “In other states, there are different timelines. Mandated increases in the percentage of EV trucks manufacturers must sell will come in 2025-2026. And a larger jump will occur in 2027.

“EV truck sales to furniture retailers will be propelled by emissions mandates from the California Air Resources Board (CARB) and on the national level by the EPA. The pace of that change will depend on how fast regulations mandating EV purchases and limiting sales of ICE trucks roll out,” he said.

“CARB is considering several timelines for accelerating the transition of medium- and heavy-duty vehicles to EVs. We are waiting for the EPA to announce its requirements across all 50 states, at which point CARB may adjust its timeline further.”

Infrastructure Speed Bump

“I can’t speak for every OEM,” Tabel said, “but I believe that the aggressive timeline CARB has specified is an area of concern because sufficient infrastructure isn’t yet in place to support a mass change-over to EV trucks.

“There just aren’t enough EV charging stations in many parts of the country to make EVs viable for some businesses. Here’s an example: Every truck traveling in and out of Manhattan passes through Hunts Point. The numbers are huge, and installing sufficient underground transmission lines to support a switchover to all EV trucks would take years—perhaps even a decade or more to achieve.”

Conclusion

Tabel stressed that EVs are a smart option for furniture retailers going forward. “While the change can be a little daunting for first-time EV truck purchasers,” he said, “it can be a smart solution.”

EVs make good economic sense depending on government incentives, especially in places where there’s a significant differential between the cost of gas and electricity. They can also help retailers advance sustainability goals.

“From our perspective as an OEM, we look forward as an industry to getting some certainty from CARB and the EPA regarding the regulatory timeline. It’s an election year, and I imagine some Furniture World readers are wondering if there might be a relaxation in requirements should there be an administration change in November. It’s possible for the longer term, but realistically, the 2027 efficiency standards will go into effect,” he concluded.

Questions about this article can be directed to Brian Tabel via editor@furninfo.com.