Berliner Boersenzeitung - Cheaper, cleaner electric trucks overhaul China's logistics

While the country's prowess in electric passenger vehicles has long been known globally, electric trucks have only recently gained traction.

Now powered by extensive charging and battery-swapping infrastructure, the cost structures clearly favour electric models, experts say, in a potentially fatal blow for conventional diesel rigs.

"Last year was the breakthrough for heavy electrified vehicles in China," Lauri Myllyvirta, co-founder of the Centre for Research on Energy and Clean Air and expert on China's energy consumption, told AFP.

"If the infrastructure is there, the economics are there for an increasing number of logistics routes and requirements," he said.

Adoption of alternatives to diesel trucks in the world's second-largest economy has noticeably accelerated in recent years.

New-energy models accounted for 29 percent of all domestic truck sales in China last year, up from 14 percent in 2024, according to data from Beijing-based market intelligence provider Commercial Vehicle World.

The penetration rate was less than one percent as recently as 2021, according to the firm.

Manufacturers say they expect that share to continue swelling, potentially reaching a majority of sales in just a few years.

At the bustling charging station in Beijing's Miyun District, 43-year-old truck driver Wang told AFP how his job had changed since he started driving an electric model last year.

"It's such a breeze!" he said after plugging in the charging cables.

"My old vehicle had over 10 gears, and its operation was so cumbersome. But with this one, you don't have to do a thing -- it's all automatic."

- 'All about speed' -

Asked why he thought logistics firms like his were increasingly switching to electric trucks, Wang said it was a combination of national policies and simple market logic.

"It's just survival of the fittest. Now, with freight expenses and everything, people are trying to earn a bit more, and this one has lower operating costs."

Another driver at the charging station, surnamed Zhang, told AFP that he has been driving an electric truck for around two months after switching from one powered by natural gas.

His job mainly involves hauling sand and stone on short journeys around Beijing, Zhang told AFP, noting that the truck is not suited for longer shipments.

The new sky-blue model Zhang drives -- made by the Howo brand of state-owned firm Sinotruk -- has a maximum range of 240-250 kilometres (149–155 miles), he said.

"The power is pretty strong, the acceleration is fast. It's all about speed, but the range is a bit lacking," he said.

As domestic adoption of electric trucks picks up pace, Chinese firms are thinking more about overseas markets.

"Similar to passenger vehicles, China's heavy truck manufacturers are beginning to view export markets as an inevitable strategy due to rising competition and the eventual saturation in the Chinese market," said Christopher Doleman, an analyst at the Institute for Energy Economics and Financial Analysis.

- 'Electric is superior' -

Recent disruption in global energy markets as a result of the Middle East war is a "potential accelerant" for this trend, Doleman told AFP.

"There is likely to be higher demand for electric heavy-duty vehicles as fleet owners try to minimise their vulnerability to volatile diesel costs," he said.

According to Han Wen, founder of electric truck start-up Windrose Technology, the war "already has" boosted demand.

Founded in 2022, Belgium-based Windrose is seeking to leverage China's advanced EV supply chains to position itself in the emerging global long-haul electric truck market -- competing with Tesla's electric "Semi".

"For trucks, range is by far the constraining factor," Han told AFP, noting that Windrose trucks can currently drive about 700 kilometres on a full charge, with plans to extend that to 1,000 kilometres in 2030.

Having secured road approval across Europe, China, the United States and South America, Windrose is now looking to ramp up production.

"We're going to build about 1,000 trucks this year," Han said, followed by goals of 10,000 next year and 100,000 in 2030.

"Economically, there is no more question at all that electric is superior," he added.

"I think we're right on the cusp of a total obliteration of diesel trucks as a product category."

(O.Joost--BBZ)