China's shift to electric trucks may reshape global fuel demand – AP News
3 days ago
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- #energy-transition
- China is rapidly replacing diesel trucks with electric models, with electric trucks accounting for 22% of new heavy truck sales in the first half of 2025.
- Electric trucks are becoming more cost-effective, with lifetime savings of 10% to 26% compared to diesel and LNG trucks, despite higher upfront costs.
- Government incentives and investments in charging infrastructure are boosting the adoption of electric trucks in China.
- The shift to electric trucks is reducing diesel consumption in China, with a notable 11% year-on-year drop in June 2024.
- LNG truck sales in China have declined as electric trucks gain market share, though LNG is still seen as a transitional fuel in some regions.
- China's electric truck expansion could impact global LNG and diesel demand, with potential ripple effects in other markets like India.
- Chinese automakers are focusing on the global electric truck market, with exports growing rapidly to regions like the Middle East, North Africa, and Latin America.
- New emission standards in China will make it difficult for manufacturers relying solely on fossil-fuel vehicles to comply, further driving the shift to electric.
- China's Sany Heavy Industry and BYD are expanding electric truck exports, including to Europe, where stringent emissions targets are driving demand.
- The rise of electric trucks in China is one of the under-reported stories in the global energy transition, with significant implications for fuel markets.