Skyrocketing sales of battery-powered heavy trucks in China account for almost a fourth of the overall market share
China's Electric Truck Revolution Reshaping Transport Landscape
China's heavy-duty truck market is undergoing a significant transformation, with electric trucks gaining significant ground against their traditional diesel and LNG counterparts.
According to a report by Commercial Vehicle World (CV World), sales of battery electric heavy-duty vehicles (HDVs) in China increased sharply from 8.6% of the market in the first half of 2024 to about 22% in the first half of 2025. This represents more than a doubling of the market share within just one year. In June 2025 alone, new energy heavy-duty trucks (including battery electric, hybrid, and hydrogen fuel cell vehicles) hit a monthly record of 18,007 units sold.
This rapid growth in electric heavy truck sales is undermining the demand outlook for liquefied natural gas (LNG) in China’s transportation sector. LNG-fueled heavy-duty trucks held around 30% market share in 2024 but declined to 26% in the first half of 2025, losing ground to battery electric trucks.
The reasons behind this shift are multifaceted. Government policies strongly encouraging electrification via subsidies, quotas, and infrastructure investments are accelerating electric truck adoption. The expansion of battery swap infrastructure and the rapid rollout of charging stations along major freight corridors, totaling over 2,400 truck charging stations nationwide, further support this growth and improve the operational viability of electric trucks, including long-haul segments.
Moreover, the lower fuel costs and higher fuel economy of battery-electric drives compared to internal combustion engines contribute to the lower total cost of ownership for electric models in China. A May report from the IEEFA found that heavy-duty trucks in China can cost anywhere from 62 to 255% more than traditional diesel models, but can nevertheless yield a total cost of ownership of 10 to 26% less.
Battery swap-enabled trucks are claimed to reduce operational costs by RMB 60,000 ($A12,844) per 100,000 kilometres compared to traditional fuel-powered heavy trucks, with a cost advantage RMB 20,000 ($A4,300) greater than that provided by LNG trucks. CATL, a major player in the battery swap sector, launched a new standardized battery pack for battery-swap enabled heavy-duty electric trucks in May. The new standardized battery model, called 75#, is claimed to deliver the lowest lifecycle cost per tonne to kilometre and industry-leading safety.
The network of expressways and trunk roads covered by this new electric infrastructure would span 150,000 kilometres across China and serve around 80% of trunk line freight capacity. Key regions like Beijing-Tianjin-Hebei, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area would be served by this network.
The slowdown in LNG adoption suggests that fleet operators may be actively choosing electric alternatives because of the lower cost of ownership. Christopher Doleman, a liquefied natural gas (LNG) and gas expert for the IEEFA, stated that this trend dims prospects for LNG demand in China's transportation sector.
In summary, the electrification trend in China's heavy-duty transport sector is reshaping the landscape and is expected to have significant implications for global heavy truck markets and energy demand dynamics in the coming decade.
References
- CV World
- IEEFA
- CATL
- China Electricity Council
- National Development and Reform Commission
- The renewable-energy sector, driven by electric trucks, is making a substantial impact in China's industry, influencing the traditional diesel and LNG counterparts.
- The rapid growth in the finance sector is evident as investments pour into the electric truck industry, facilitating the expansion of data-and-cloud-computing for battery swap infrastructure and charging stations.
- The technology advancements in battery swapping and electric vehicles, demonstrated by companies like CATL, are reducing operational costs and fuel consumption, thereby shaping the future of the energy industry in China.
