IKEA Australia is taking another step toward its goal of 100% zero-emission home deliveries, introducing four long-range Volvo FL Electric trucks through an innovative leasing partnership with CarBon Leasing. The initiative aims to make clean transport more accessible for small business contractors and extend IKEA’s zero-emissions delivery network beyond metropolitan areas into regional Australia.
Since 2019, IKEA has worked with partners including ANC Delivers, All Purpose Transport, and Kings Transport to implement electric vehicle deliveries nationwide. The new trucks represent the next stage of that journey — designed to tackle two of the biggest barriers in the transition to electric freight: cost and access.
“It’s not well known that most (98%) of delivery vehicles are owned by small businesses or subcontractors, not delivery companies or retailers,” said Alexandra Kelly, Zero Emissions Project Leader, IKEA Australia & New Zealand. “Electric vans and trucks remain significantly more expensive than diesel alternatives, which is a major challenge for drivers who operate with low margins.”
Under the new model, the Volvo FL Electric trucks will be leased to ANC Delivers contractors through CarBon Leasing. IKEA will retain ownership of the vehicles, while CarBon manages the leasing and operational support. This structure removes upfront purchase costs and offers lease rates comparable to diesel trucks, making electric vehicles a realistic and financially viable option for small operators.
“Our model removes the upfront cost barrier and supports drivers with everything from vehicle sourcing to charging and CO₂ reporting,” said Scott Gillespie, Managing Director of CarBon Leasing. “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.”
Expanding range and reach
The Volvo FL Electric Gen 3 trucks are engineered for regional delivery routes with a range of up to 450 kilometres and a payload capacity of 5,500 kilograms. These trucks will enable IKEA to expand its zero-emissions coverage into new postcodes — an important step toward the company’s goal of reaching every Australian household sustainably.
“It’s been fantastic to see the evolution of electromobility here in Australia,” said 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.”
Scaling up zero-emission deliveries
In October 2025, almost 84% of IKEA’s truck orders were completed using zero-emission vehicles — a dramatic rise from just 5% in 2022. The company has also invested $4.5 million in national charging infrastructure, helping service providers overcome one of the remaining hurdles in electrifying delivery fleets.
“At IKEA, we embrace innovation and experimentation, with sustainability at the core of our decision-making,” Ms Kelly said. “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.”
Overcoming the infrastructure challenge
While the pilot highlights the feasibility of zero-emission freight, Ms Kelly acknowledged that charging access remains a key barrier, particularly outside metropolitan areas.
“This partnership with Volvo and CarBon is a bold step toward our goal of 100% zero-emissions deliveries,” she said. “However, to truly scale 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.”
By coupling innovation with collaboration, IKEA’s initiative demonstrates how the retail and logistics sectors can work together to accelerate the shift to zero-emissions transport — delivering not only goods, but a more sustainable future for Australian communities.
