China Leads The Adoption Of Electric Long-Haul Trucks

2025-07-07 12:01:58

(MENAFN- Asia Times) China is extending its dominance of electric vehicles from passenger cars to heavy trucks as President Trump's Big Beautiful Bill eliminates federal subsidies at a time when European support for the industry remains weaker than it once was.

Production and consumption of gasoline and diesel are declining in China, reducing demand for imported oil and resulting in less road noise, cleaner air and better health for urban residents.

In addition to the environmental benefits, the US and Europe are missing out on another clean-energy market opportunity. Economic research organization Mordor Intelligence expects the global electric truck market to more than double in size to $89 billion in 2025 and grow at a CAGR of 26% to $227 billion by 2029.

The medium-duty commercial truck segment is projected to grow most rapidly (39% CAGR over the same period), but the heavy-duty segment is the largest, having accounted for 87% of the market in 2024.

Zero-emission targets are the main demand driver, but a well-developed charging infrastructure is essential. Improvements in battery performance (longer range), the expansion of battery manufacturing capacity and the development of new and more efficient vehicles equipped with driver assistance systems facilitate and enhance the growth. China has it all.

According to the International Energy Agency (IEA), global sales of bettery-powered electric trucks increased by nearly 80% in 2024, led by a 2X increase in China, which accounted for more than 80% of the total.

Starting from a very low base and propelled by government incentives, the number of electric trucks sold in China rose to about 75,000 vehicles. Sales in Europe and the US, the second and third largest markets, were roughly flat.

The total cost of ownership of a heavy-duty electric truck used in long-haul transport, in the estimation of the IEA, has already reached parity with diesel trucks in China, with savings on fuel offsetting shigher price for electric trucks. In Europe and the US, the IEA expects parity to be reached by 2030. The operating cost of electric trucks can be lowered by charging batteries during the rest periods required for commercial drivers.

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