(By Observer Net, Zhang Jiadong; Editor: Gao Xin)

According to a recent report by the Financial Times of the UK, Sany Heavy Industry aims to increase its overseas sales share to 50% by 2030. At the same time, BYD and BAIC Foton are also shipping their vehicles to Italy, Poland, Spain, and Mexico. These new developments from Chinese automakers are helping Chinese cars go global.

Sany Heavy Electric Truck Factory, Financial Times

Similar to passenger cars, the shift in powertrain structure in the domestic car market is becoming the biggest driver for Chinese trucks going abroad.

According to data provider "Commercial Vehicle World", in the first eight months of this year, diesel trucks accounted for about 51% of China's truck sales, compared to 75% during the same period in 2023. In contrast, the adoption rate of electric trucks has soared from 4% two years ago to about 24%.

In May this year, Ningde Era Chairman Zeng Yuzhong also stated that half of all new trucks sold in China will be electric trucks by 2028. This forecast indicates a major transformation in the global heavy truck market.

Although Zeng Yuzhong's prediction may include marketing rhetoric for his company's truck battery products, behind the objective growth in the proportion of new energy truck sales is China's leading position in electric vehicle technology within its automotive industry chain.

The Financial Times noted that the significant drop in battery costs and the improvement in driving range are crucial to the prosperity of China's electric trucks. At the same time, the trade-in subsidies provided by China for diesel trucks and the dedicated lanes allocated by local governments for electric vehicles have helped Chinese companies achieve scale development.

According to the information, Sany Heavy Industry officially launched its electric truck business in 2021. It now holds about 16% of the market share in the domestic market, and the company has invested approximately 22 billion yuan in developing its electric truck business. Its Changsha factory has an initial annual production capacity of about 150,000 units, and it plans to double the capacity within the next five years, reaching 300,000 units.

Sany Heavy Electric Trucks, Financial Times

Although it is expected that most electric trucks will be sold domestically in the short term, Sany Heavy Industry is still strengthening its construction in the overseas market. Since the beginning of this year, the group has established an electric truck factory in South Africa and has started selling its vehicles in Europe, while also looking for land in Brazil to expand its overseas operations.

At the same time, as part of its entry into the European market, Sany Group is also collaborating with German high-tech concrete pump company Putzmeister to better adapt to localized competition.

However, Liang Linhé, chairman of Sany Heavy Truck Division, mentioned in an interview with the Financial Times the biggest pain point for Chinese electric trucks going abroad: "We have seen the rapid development of the overseas market, but the biggest challenge is that the power infrastructure in many countries lags behind China."

Data from the European Automobile Manufacturers Association also shows that the electrification process outside of China is much slower. Due to a lack of investment in charging infrastructure and the grid, the share of electric trucks in the European market was only 3.6% in the first half of this year. However, electric truck sales are steadily increasing in countries such as Brazil, Canada, and South Africa.

Christopher Dorman from the Institute for Energy Economics and Financial Analysis said that Chinese electric truck manufacturers seem to be following a similar path to Chinese electric vehicle groups. He believes that under the intense domestic competition, these companies have shifted to export-driven growth strategies, thus using their industrial chain and manufacturing capabilities to maintain profitability.

He also said, "For any country planning to reduce its reliance on oil and diesel imports, (the way Chinese cars are going global) is feasible."

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