China’s heavy trucks are going electric, and abroad, paving the road to net-zero freight

Domestic makers of heavy-duty trucks are emerging as the latest beneficiaries of accelerating electrification on China’s roads, as technological gains and lower ownership costs are bolstering overseas sales amid a global energy crisis. Southeast Asia and Africa, where Chinese makers have already established overseas assembly hubs, were expected to serve as new growth engines for companies ranging from FAW Jiefang to Foton Commercial Vehicles, according to analysts at S&P Global Ratings. The two markets “will remain key export destinations for Chinese manufacturers, supported by competitive pricing, strong loading capacity, and a broad product portfolio,” the rating agency said in a late-May research report. The finding came after Chinese truck makers reported a 33 per cent year-on-year jump in overseas sales during the first quarter of 2026. Export volumes topped 100,000 units, representing more than 30 per cent of their total deliveries, according to the China Association of Automobile Manufacturers. Buoyed by the rapid development of battery technology and by government subsidies, the cost of owning a pure electric heavy-duty truck – with a gross weight of at least 14 tonnes – has nearly reached parity with its diesel-powered counterpart, according to Chen Jinzhu, CEO of the Shanghai Mingliang Auto Service consultancy, noting that units were priced at about 500,000 yuan (US$73,500) after subsidies. Under Beijing’s trade-in award policy, a buyer replacing an old truck with an electric heavy-duty truck can receive up to 140,000 yuan from the government as China promotes its decarbonisation drive. “However, diesel costs much more than electricity when the trucks are put in use,” Chen added. “With a higher production volume of electric trucks [expected] in the coming years, they will become more competitive in international markets.” In China, the world’s largest automotive and electric vehicle market, sales of new electric heavy-duty trucks soared in 2025 by 182 per cent, year on year, to 231,100 units, accounting for 29 per cent of the national total, according to CV World, a commercial vehicle data provider. Earlier this month, China’s Ministry of Transport, along with 10 other government agencies, announced national ambitions to achieve 40 per cent electric heavy-duty truck penetration by 2030 to rev up the automotive industry’s low-carbon transition. XCMG Group and Sany Heavy Industry have outperformed most conventional makers in the electric heavy-duty truck market over the past two years, according to S&P’s analysts. “They achieved this through an early focus on and expertise in short-haul, high-frequency, and closed-loop operating environments,” their report said. “These include mining sites, ports and construction sites, which are well-suited to electrification.” Last month, Yang Dongsheng, chairman of the state-owned XCMG, said at a media briefing that the group – famed for its excavators, cranes and specialised vehicles – aimed to generate overseas sales of 100 billion yuan a year in the near future, nearly matching its revenue of 102 billion yuan in 2024. According to S&P’s findings, Chinese truck manufacturers operated more than 60 overseas assembly plants, with a combined production capacity of about 180,000 units by the end of 2024. About 60 per cent of this capacity spans South Asia, the Middle East and Africa. Data from the China Passenger Car Association showed that the mainland accounted for about 70 per cent of global electric car sales in 2025. Chinese makers of electric cars and supply-chain vendors are at the vanguard of battery production, autonomous driving technology, and charging-infrastructure construction, spurred by ­government support and consumer appetite for innovation. This month, Contemporary Amperex Technology (CATL), the world’s largest EV battery producer, discussed plans to form a 50-50 venture with Octopus Energy, the largest household-energy supplier in Britain, to build battery-swap services for electric heavy trucks in Europe. The first batch of battery-swap stations, which allow drivers to quickly exchange a spent battery pack for a charged one, is due to debut in Britain next year, according to a CATL statement. The battery-swap network would eventually expand to Scotland and Wales, it added. ZYT, a Shenzhen-based self-driving technology start-up, said in April that it had formed partnerships with six of mainland China’s leading heavy truck makers to produce models fitted with its navigation-on-autopilot (NOA) systems. The firm, a spin-off from drone maker DJI, was expected to deliver the first semi-autonomous trucks to domestic customers as early as the second half of 2026, according to ZYT’s vice-president, Yu Beibei. Evidence showed that trucks using ZYT’s NOA systems could save 3 per cent in annual fuel costs, she added.