As part of its goal of achieving 100 per cent zero-emission home deliveries, IKEA Australia has taken delivery of four Volvo FL long-range electric trucks.
These new Gen 3 Volvo trucks have a range of up to 450 kilometres and can carry a payload of up to 5500kg.
This investment will allow 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.
Alexandra Kelly, Zero Emissions Project Leader, IKEA Australia & New Zealand In Australia, 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.
“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 per cent of truck orders for IKEA were completed in a zero emissions vehicle – that’s nearly all orders in metro areas. The company’s next step is to go further to reach those living outside the major 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 Kelly.
The way the partnership works is that 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, spoke about the partnership with IKEA. “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.”
Volvo’s long-range electric trucks are engineered to meet the demands of regional deliveries.
“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.”
This delivery 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 per cent of truck orders were being made via a zero-emissions vehicle, and in October 2025, IKEA Australia has reached a new peak of almost 84 per cent for zero-emissions truck deliveries.
“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 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.”