A short guide to regulations & subsidies for Last-Mile Delivery fleets: A path to electric vehicles


Last-mile delivery is a crucial part of the logistics chain, connecting goods and services to customers. However, it also poses significant challenges for the environment, as conventional delivery vehicles emit substantial greenhouse gases and contribute to air pollution, which is of particular concern in urban areas. As the demand for e-commerce and delivery services grows, so does the need for more sustainable and efficient solutions.

Given their low daily driving ranges of less than 100 km, and predictable schedules, last-mile fleets are promising candidates for electrification. Electric Vehicles (EVs) offer many benefits, such as lower fuel and maintenance costs, alongside reduced noise and emissions. However, they also require substantial upfront investments and infrastructure support, which can deter fleet owners from making the switch.

Fortunately, there are various subsidies and incentives available in many countries to encourage and support the adoption of EVs for last-mile delivery. These programs can help fleet owners overcome the initial barriers and achieve a reasonable total cost of ownership (TCO) for their EVs. However, navigating the world of subsidies and incentives can be complex and challenging, as each country and region has its own regulations and eligibility criteria.

This is where DLL can make a difference. Our eMobility team has extensive experience and expertise in tailored leasing solutions and guidance for fleet owners who want to transition to EVs. We can guide fleet owners understand and access the subsidies and incentives available in their markets, as well as provide asset management and support services throughout the lease term.

Subsidies and Incentives for Last-Mile Delivery Fleets

Many countries have recognized the importance of promoting eMobility as a way to reduce greenhouse gas emissions and improve air quality. As such, they have implemented various subsidies and incentives to encourage and support the adoption of EVs in the transport sector. These programs can take different forms, such as:

  • Subsidies: Direct payments or grants from governments or organizations to reduce the purchase price or operational costs of EVs.
  • Tax credits: Reductions or refunds of taxes related to the purchase or use of EVs.
  • Tax exemptions: Waivers or reductions of taxes or fees normally applied to conventional vehicles, such as registration fees, road taxes, or congestion charges.
  • Rebates: Partial refunds of the purchase price or operational costs of EVs from governments or organizations.
  • Discounts: Reduced prices or fees for EVs or related services, such as electricity tariffs, parking fees, or toll charges.
  • Bonus payments: Additional payments or rewards for purchasing or using EVs or related services, such as free charging stations, access to bus lanes, or loyalty programs.

The availability and amount of these subsidies and incentives vary depending on the country and region, as well as the type and size of the EVs. Some countries have national programs that apply to all regions, while others have regional or local programs that are specific to certain areas. Some countries have general programs that apply to all types of EVs, while others have targeted programs that focus on certain segments or sectors.

Examples of countries that are leading in EV adoption and have specific programs for last-mile delivery fleets are:

New programs and opportunities in markets around the world emerge every year. Therefore, it is important for fleet owners to stay up-to-date and informed about the regulations and subsidies in their regions, and how to benefit from them.

Navigating the World of Subsidies and Incentives

While subsidies and incentives can provide significant advantages for fleet owners who want to transition to EVs, they can also pose some challenges and complexities. Each program has its own eligibility criteria, application process, documentation requirements, and deadlines. Moreover, some programs may have limited funds or quotas, which can run out quickly or change frequently. Therefore, fleet owners need to be proactive and strategic in approaching subsidies and incentives for EV adoption.

Here are some steps fleet owners can take to navigate the world of subsidies and incentives effectively:

  • Research: The first step is to research and identify the available programs and their requirements in the markets where the fleet operates or plans to operate. This can be done by consulting official sources, such as government websites, publications, or agencies, as well as industry sources, such as associations, publications, or experts. Fleet owners should also monitor the changes and updates in the regulations and subsidies, as they may evolve over time.
  • Engage: The next step is to engage with the relevant authorities and organizations that administer or oversee the programs. This can be done by contacting them directly, attending their events or workshops, or joining their networks or platforms. Fleet owners should also engage with other stakeholders in the eMobility ecosystem, such as dealers, Original Equipment Manufacturers (OEMs), infrastructure providers, or customers, who may have valuable insights or experiences with the programs.
  • Collaborate: Collaboration with suppliers and financiers who have expertise and experience in subsidy navigation and eMobility solutions is vital. This can be done by selecting a supplier who can provide guidance and support throughout the subsidy application process, as well as offering tailored leasing solutions and asset management services for EVs. Suppliers and finance companies, like DLL, who have a global presence and partnerships can also help fleet owners access cross-border programs and opportunities.
  • Maximize: Lastly, maximize the benefits of the subsidies and incentives by timing them strategically, documenting them properly, and applying them efficiently. This can be done by planning and aligning the subsidy application with the fleet acquisition or renewal cycle, ensuring that all the necessary documents and information are ready and accurate, and following the best practices and tips from the authorities or suppliers.

By following these steps, fleet owners can increase their chances of obtaining subsidies and incentives for their EVs, as well as optimizing their TCO and return on investment.

Leasing as a Solution for Reasonable Total Cost of Ownership

Another way fleet owners can achieve a reasonable TCO for their EVs is by opting for leasing instead of purchasing, which allows fleet owners to use EVs without owning them outright.

Fleet owners pay a monthly fee to use EVs for a fixed period, and at the end of the lease term, they can return the EV or renew the lease with a newer model EV. Leasing offers several benefits for last-mile delivery fleets transitioning to EVs, including reduced upfront costs, potential tax advantages, flexibility to upgrade, and leasing options that include maintenance and support services.

However, not all leasing solutions are created equal. Fleet owners need to choose a supplier who can offer leasing solutions that are tailored to their specific needs and goals. That’s where DLL comes in.

Why choose DLL as your finance partner?

With a deep understanding of the industry and its challenges, DLL is ready to support eMobility ventures globally, offering tailored leasing and financing solutions with guidance for fleet owners transitioning to EVs.

With in-house asset management capabilities and a network of remarketing channels for efficient disposal of returned assets at end of lease, DLL's personalised approach and industry expertise enable tailored offerings fine-tuned to each customer's needs and goals.

The dedicated eMobility team provides specialized support globally with vendor partners to facilitate smooth transitions. With a presence in over 25 countries, DLL can support fleet owners transitioning to eMobility solutions worldwide.

Contact DLL today and find out how we can help you achieve a successful transition to eMobility.