Sweden’s Volvo will launch a long-range variant of its FH Electric truck, capable of covering up to 600 km (373 miles) on a single charge, its truckmaking arm said on Tuesday.

The new model, expected to hit the market in the second half of 2025, caters to customers requiring longer hauls by maximizing battery space while improving the truck’s software.

Volvo Trucks, a global leader in electric trucks, said it would use an electronic axle technology that combines motor, gearbox and axle into one unit, increasing battery capacity.

Volvo Trucks’ head of product management and quality Jan Hjelmgren said that the company was accelerating its green investments, but further action from politicians would be crucial for broader adoption of zero-emission vehicles.

Heavy truck market in Europe is expected to slow down this year after three years of high demand, which last year resulted in the highest delivery levels in more than 15 years as supply chain disruptions eased.

Additionally, battery-electric vehicles are losing market share in Europe due to inconsistent green policies and lack of sufficient political subsidies.

As of last year, electric trucks were still significantly more expensive than their diesel counterparts, with prices ranging from 250,000 euros to 400,000 euros ($276,525 to $442,440).

Last month, Volvo said it had chosen Monterrey as the location for its new $700 million North American truck plant, set to start operations in 2026.

Hjelmgren said the Monterrey factory would play a crucial role in supporting Volvo Trucks’ North American growth strategy by providing the industrial capacity needed to meet increasing demand.