IKEA Australia has added four Volvo FL long-range electric trucks to its fleet, as part of a goal to reach total zero-emission home deliveries.
The investment, completed through a new leasing model with CarBon Leasing, will enable IKEA to expand its zero-emissions delivery footprint beyond metro areas into regional postcodes, helping to reach more Australians sustainably.
In October 2025, almost 84 per cent of truck orders for IKEA, nearly all orders in metro areas, were completed in a zero emissions vehicle.
IKEA’s next step is to go further to reach more Australians living outside our cities.
Since 2019, IKEA has partnered with ANC Delivers, All Purpose Transport, and Kings Transport to implement home deliveries with electric vehicles across Australia.
IKEA Australia & New Zealand Zero Emissions Project Leader, Alexandra Kelly, said: “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.”
Kelly said 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,” said Kelly.
“By offering a leasing package as an attractive alternative to diesel trucks, drivers can access electric vehicles without financial risk.”
Alexandra Kelly said IKEA firmly embraced innovation, experimentation and sustainability.
“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,” she said.
The partnership model with CarBon Leasing will address challenges in the road freight sector, including high upfront costs and contractors’ limited access to suitable electric vehicles.
In this arrangement, IKEA will own the vehicles, while CarBon Leasing takes care of their management and leasing, making electric trucks financially viable for owner-operators and small delivery businesses, IKEA said.
CarBon Leasing Managing Director, Scott Gillespie, said partnering with IKEA on this initiative was an innovative solution to providing EVs.
“Our model removes the upfront cost barrier and supports drivers with everything from vehicle sourcing to charging and CO₂ reporting,” he said.
“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 Volvo e-trucks’ long-range capabilities will help IKEA to 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,” said Volvo Group Australia President and CEO, Martin Merrick.
“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 one million kilometres proving that electric is indeed a reality for transport operators looking to reduce emissions and noise in urban areas.”
This e-trucks build 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.
From 2022 to October 2025, IKEA Australia went from five per cent of truck orders having zero-emissions capabilities to 84 per cent.
“This partnership with Volvo and Carbon is a bold step toward our goal of 100 per cent zero emissions deliveries, demonstrating that with collaboration and innovation, sustainable delivery is not just a future vision, it’s happening now,” said Alexandra Kelly.
“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.”
Read more about Volvo electric trucks.
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