Employees at a factory in China assemble the parts of an electric truck.
AFP
After conquering the global market for electric cars, Chinese companies are tackling a much less publicized sector: that of electric trucks. But customs tariffs and questions about quality remain obstacles to overcome.
Chinese manufacturers and start-ups want to capitalize on the winning formula that has propelled the electric vehicle industry: a well-oiled domestic supply chain and rock-bottom prices.
Competitive sector
In 2023, Chinese firms already accounted for 70% of global sales of electric trucks. But the latter still represent only a tiny portion of the overall heavy goods vehicle market – less than 1%, according to the International Energy Agency (IEA).
The IEA, however, says it is “optimistic” about the wider adoption of electric trucks over the next ten years, in particular thanks to political and technological developments.
Several fleets of Chinese trucks from companies like BYD and Beiqi Foton are already on the roads of Italy, Poland, Spain and Mexico, and these firms have opened assembly plants around the world.
“Chinese trucks are generally competitive in emerging markets,” Steve Dyer, an expert at the consulting firm AlixPartners, told AFP. But in more mature markets, the performance and durability of Chinese vehicles “do not yet meet the needs of most customers, although this is changing,” he adds.
Behind the Americans
The heavy goods vehicle sector “is considered one of the transport segments where it is the most difficult” to reduce greenhouse gas emissions, after aviation and maritime transport, Elizabeth Connelly explains to AFP , analyst at the IEA.
One of the major challenges is finding the balance between battery life and size: too large, they affect weight and efficiency. Too small, they limit the kilometers traveled. However, Chinese models often fall short of the standards of foreign manufacturers: according to the Zero-Emission Technology Inventory, an online sector directory, most Chinese electric trucks have a median range of 250km, compared to 322km in the United States.
But rapid progress, particularly in the field of battery replacement, could change the situation. Chinese battery giant CATL has deployed battery changing stations for trucks, where exhausted power packs can be immediately replaced, eliminating recharge time.
Geopolitical rivalries at stake
But the sector also runs the risk of finding itself mired in geopolitical and commercial rivalries. The European Union and the United States have already imposed additional customs duties on Chinese electric cars, believing that Beijing’s financial support for automakers distorts competition.
China rejects these accusations, but the risk of similar measures applying to Chinese heavy goods vehicles is increasing. US President-elect Donald Trump has already promised to increase tariffs on Chinese imports after his inauguration in January.
Some Chinese truck manufacturers are anticipating this turbulence. Manufacturer BYD promotes its trucks by saying they are “assembled by union workers in Lancaster, California,” and plans to build a factory in Mexico.
(afp)
