Consolidation in China's ZE-HDV Market
China's Zero-Emission HDV Market: Consolidation and Growth
The market for zero-emission (ZE) trucks and buses in China is showing signs of recovery, approaching levels last seen in 2018, despite incentives being only 40% of their previous levels. This resurgence is a testament to the growing demand for cleaner transportation solutions in the world's largest automotive market.
One of the key players in the diesel HDV sector, FAW, has yet to make a significant shift towards ZE-HDVs. As a result, the company currently holds a small market share in the ZE-HDV segment. In contrast, other manufacturers like Dongfeng Motor, Geely, King Long, and Ankai are making strides in the ZE-HDV market.
In 2021, Dongfeng Motor overtook FAW in the ZE-HDV market in China, producing the most ZE trucks with 5,500 units. The company has ambitious plans for electrification, aiming to launch 20 electric vehicles by 2022, spanning from light-duty delivery vans to long-haul tractors.
King Long, with decades of experience in alternative energy powertrains, has been a pioneer in the ZE-HDV market. The company unveiled the first hybrid coach using a lead acid battery back in 2001. Geely, another significant player, entered the ZE-HDV market in 2016 and has a long-standing reputation in China as a manufacturer of electric passenger cars.
Interestingly, seven out of the top 10 ZE-HDV manufacturers in China focused primarily on buses in 2021, similar to their diesel output. This trend suggests a gradual shift towards cleaner public transportation solutions.
The consolidation in the Chinese ZE-HDV market is evident, with top firms gaining an advantage through economies of scale. However, the future of this consolidation remains uncertain, with the market dynamics likely to evolve in the coming years.
FAW, the largest diesel truck producer in China, has announced investments totaling more than 30 billion yuan through 2025 with the aim of becoming the market leader in ZE-HDVs by 2030. It remains to be seen how this investment will impact the current market landscape.
Geely, too, has expanded its portfolio by developing methane engines for long-haul tractor-trailers, in addition to electric vehicles and buses.
The company that reached the market leadership position in the ZE-HDV market in China in 2021 before FAW announced its investment of over 30 billion yuan between 2021 and 2025 is not explicitly named in the provided search results. This underscores the dynamic nature of the Chinese ZE-HDV market, where competition is fierce and innovation is key.
As China continues to prioritise cleaner transportation solutions, the ZE-HDV market is expected to grow and evolve, with the top firms jostling for position to capture a larger share of this burgeoning market.
