New Volvo long-range electric trucks for IKEA zero emissions deliveries
IKEA Australia has taken a major step toward its goal of 100% zero-emission home deliveries with a significant investment in four Volvo FL long-range electric trucks and an innovative new leasing model with CarBon Leasing.
This strategic investment will enable IKEA to expand its zero-emissions delivery footprint beyond metro areas into regional postcodes, helping to reach more Australians sustainably.
Since 2019, IKEA has partnered with ANC Delivers, All Purpose Transport, and Kings Transport to implement home deliveries with electric vehicles across Australia.Alexandra Kelly, Zero Emissions Project Leader, IKEA Australia & New Zealand In Australia, said, “It’s not well known that most (98%) of delivery vehicles are owned by small businesses or subcontractors[1], not delivery companies or retailers.
Electric vans and trucks remain significantly more expensive than diesel alternatives, which is a major challenge for drivers who operate with low margins.“The Volvo electric trucks, designed for longer distances, will be leased to ANC Delivers contractors through CarBon Leasing. ANC Delivers has been a valued partner to IKEA in our transition to zero emissions, and their continued support with this new pilot removes the barrier of upfront vehicle costs for contractors.
By offering a leasing package as an attractive alternative to diesel trucks, drivers can access electric vehicles without financial risk.
”In October 2025, almost 84% of truck orders for IKEA were completed in a zero emissions vehicle – that’s nearly all orders in metro areas. Our next step is to go further to reach more Australians living outside our cities. At IKEA, we embrace innovation and experimentation, with sustainability at the core of our decision making. With this new business model, we aim to prove that zero emission delivery is achievable today for retailers, with electric vehicles that can go the diesel distance,” said Ms Kelly.
The partnership addresses key challenges in the road freight sector, including high upfront costs and limited access to suitable electric vehicles for contractors. In a new way of working, IKEA owns the vehicles while CarBon Leasing takes care of their management and leasing. This model offers a lease cost similar to that of diesel trucks, making electric trucks financially viable for owner-operators and small delivery businesses.
Scott Gillespie, Managing Director of CarBon Leasing, said partnering with IKEA on this initiative showed what’s possible when global ambition meets practical local solutions.
“Our model removes the upfront cost barrier and supports drivers with everything from vehicle sourcing to charging and CO₂ reporting. “Making zero-emissions delivery financially viable for small operators isn’t just good for business, it’s essential for Australia’s transition to cleaner transport,” he said.
Volvo’s long-range electric trucks are engineered to meet the demands of regional delivery, helping IKEA get closer to its customers while reducing emissions. The new Gen 3 Volvo trucks now have a range of up to 450 kilometres and can carry a payload of up to 5,500kg.
“It’s been fantastic to see the evolution of electromobility here in Australia,” says Martin Merrick, President and CEO, Volvo Group Australia, “Since the first electric FL arrived on our shores in 2020 this truck has only gotten better.”
“Our Australian electric truck fleet has now clocked up well over 1 million kilometres proving that electric is indeed a reality for transport operators looking to reduce emissions and noise in urban areas.”
This initiative builds on IKEA Australia’s broader efforts in the zero emissions transition, including a $4.5 million investment in national charging infrastructure, to help overcome accessibility challenges for charging electric vehicles operated by its service providers.
In 2022, just 5% of truck orders were being made via a zero-emissions vehicle, and in October 2025, we reached a new peak of almost 84% for zero-emissions truck deliveries.
"This partnership with Volvo and CarBon is a bold step toward our goal of 100% zero emissions deliveries, demonstrating that with collaboration and innovation, sustainable delivery is not just a future vision, it’s happening now. However, to truly scale zero emissions delivery into outer metro and regional areas, we must overcome one of the biggest remaining barriers: charging infrastructure. Addressing this challenge will require coordinated investment and action from government, industry, and the broader transport ecosystem", concluded Ms Kelly.
[1] ATA & EVC (2021), Keeping shelves stocked in a net zero world