IKEA Australia has taken a major step towards its zero-emissions home deliveries goal with the introduction of four new electric trucks under a new leasing model.
The four Volvo FL long-range electric trucks coincide with an innovative new leasing model with CarBon Leasing, allowing IKEA to expand its zero-emissions delivery footprint beyond metro areas and into regional postcodes.
Since 2019, IKEA has partnered with ANC Delivers, All Purpose Transport and Kings Transport to implement home deliveries with electric vehicles across Australia.
“It’s not well known that most (98 per cent) of delivery vehicles are owned by small businesses or subcontractors, 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,” IKEA Australia and New Zealand zero-emissions project leader Alexandra Kelly says.
“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.”
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In October 2025, almost 84 per cent of truck orders for IKEA were completed in a zero emissions vehicles, representing nearly all orders in metro areas. The retail giant’s next step is to go further to reach more Australians living outside of cities.
“At IKEA, we embrace innovation and experimentation, with sustainability at the core of our decision making,” Kelly says.
“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.”
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.
CarBon Leasing managing director Scott Gillespie says 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,” he says.
“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.”
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,” Volvo Group Australia president Martin Merrick says.
“Since the first electric FL arrived on our shores in 2020 this truck has only gotten better.”
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