From Tesla to BYD, China’s Electric Trucks Market is Heating Up

Rising fuel prices, along with the war situation in Ukraine and the world’s dependence on its fossil fuels, have compelled consumers and manufacturers to opt for more eco-friendly options like electric trucks.

According to research by Market.us,” The global market for electric trucks was valued at US$ 1.628 billion in 2021. It is expected to grow at a CAGR of 40.3% between 2023 and 2032.”

Market.us research team further elaborated, “The market’s growth is driven by increasing demand from the logistics industry, lower fuel and maintenance costs, and incentives to adopt zero-emission vehicles. With the Government and Environmental Protection Agencies imposing restrictions on the usage of gasoline-based vehicles, the market can see an evergreen growth.“

The Asia Pacific region contributed the highest revenue share globally, at 47.8% in 2021, and it is predicted to maintain its dominant market position over the forecast period.

The transport industry is the major contributor to greenhouse gas emissions and is assumed to produce more than 35% of these gases in the future. It is also the dominant factor responsible for climate change and pollution. Vehicles can be segmented into passenger cars, trucks, agricultural vehicles, and motorcycles. Among these, trucks accounted for over 77.3% of road GHG emissions.

As a result, truck manufacturers are required to comply with stringent governmental policies.

With China having 10% of the share and 6,700 new registrations in 2020, it dominates the market globally. Followed by China, South Korea also holds a noticeable market share; amongst trucks manufactured and sold, 7.6% contributed to the sales of electric vehicles.

It is expected for the Electric Truck Market in China to exceed 20 Million by 2030. It is segmented into light, medium, and heavy-duty electric trucks. In the heavy-duty is the 8TT, a Class 8 semi-tractor equipped with a 435 kWh battery.

The Chinese truck producers have penetrated their roots into the US market and its customers. Anheuser-Busch one of its customers, has deployed 21 electric semi-tractors made by BYD in California. In China, 7,960 all-electric/PHEV/hydrogen commercial trucks were sold by BYD in 2018 and 3,830 in 2019.

Right behind it is the South Korean market, where 9,000 units of Porter Electric Trucks were traded in 2020, whereas Kia sold more than 5000 units of the Kia Bongo EV in the same market.

Most electric heavy trucks still need to be operational on long-haul journeys but are used within city limits. As there are coming new adjustments in the policy, technology, and economic levers to speed up the adoption of heavy trucks with zero emissions and better capabilities, the market could expand quickly.

According to a study by the University of California, Davis, truck manufacturers need to be more strategic in how they deploy electric trucks due to the fact of them being so heavy; some of these electric big rigs are likely to be over 5,200 pounds heavier than diesel trucks.

Meanwhile, green and sustainable road freight has gradually become the focus of researchers, such as the readjustment of transport structure, the electrification of heavy-duty, and the application of low-carbon fuel in trucks.

Researchers are now focusing on the aspect of eco-friendly and sustainable road freight. This includes the adjustment of transport structures, the electrification of heavy-duty, and the use of low-carbon fuels in trucks.