Chinese companies, while leading in the electric car industry, have also been steadily gaining ground in the electric trucking sector, which has not received as much attention. However, experts caution that international tariffs and concerns about product quality could present challenges in the future.
Chinese companies are advancing their influence in the electric truck sector, leveraging strategies that have propelled them to leadership in electric vehicles (EVs). Despite holding a minor share globally, electric trucks in China accounted for 70 per cent of global sales in 2023. The International Energy Agency remains optimistic about the sector’s expansion over the next decade due to policy and technological advancements.
Han Wen, founder of the startup Windrose, emphasised the potential for disruption in the industry as his company’s first electric trucks were assembled. Despite facing sanctions on their EV cars from Western nations, Chinese firms like BYD and Beiqi Foton are exporting trucks and establishing assembly plants internationally.
Cost competitiveness in emerging markets is a noted strength of Chinese trucks, according to Stephen Dyer of AlixPartners. However, challenges persist in mature markets, particularly concerning performance and durability. The industry also grapples with balancing battery size and vehicle range, a trade-off highlighted by IEA analyst Elizabeth Connelly.
Historically, Chinese trucks have been viewed as inferior in quality compared to European or Japanese counterparts, but perceptions are shifting as Chinese companies strive to close gaps in technology and performance. Notably, BYD’s 8TT model offers a range significantly shorter than Tesla’s Semi truck, but other companies like Windrose are making competitive strides with higher range offerings.
Battery-swapping technology by CATL could revolutionize the sector by eliminating charging times, further leveraging China’s robust EV supply chain. However, the sector navigates complex geopolitical dynamics, including tariffs from major trade partners like the EU and the US, which could pose challenges to China’s growing global presence in EV trucks.
Companies are adapting by diversifying their operations internationally. BYD highlights its use of union labour in California and plans further expansion in Mexico and Europe. Windrose has also moved parts of its operations to Belgium, underscoring a strategic spread across multiple countries to align with global market demands. Despite these efforts, the foundational role of China’s supply chain remains a critical starting point for these enterprises.
