Chinese electric truck manufacturers target European market

Chinese truck manufacturers are increasingly entering the European market with competitively priced electric vehicles, posing a challenge to established European brands. Shipping companies in Europe have begun testing these new vehicles, raising questions about the cost-effectiveness of traditional European heavy-duty trucks.

Dold, a freight company based in Buchenbach, Germany, is aiming to contribute to climate protection by transitioning half of its fleet, currently consisting of 40 trucks, from diesel to electric within five years. While they have started using electric models from Daimler and MAN, the high purchase price remains a barrier. Oskar Dold, the senior executive, expressed frustration over the cost disparity, noting that an electric truck should not cost more than twice as much as a diesel counterpart. A Daimler eActros, for instance, cost 295,000 euros compared to 130,000 euros for a diesel truck.

Due to the lack of competitive pricing from European manufacturers, Dold began looking for alternatives and found the Chinese company Sany. After testing a Sany 40-ton truck, Dold was impressed with its battery performance. While the cabin was less luxurious than those of European models, it met the company's operational needs. Sany also offered to equip Dold's workshop and train its staff, making the vehicles a more compelling option.

A McKinsey survey indicates that approximately half of all fleet operators in Europe are considering purchasing Chinese brands, incentivized by lower prices. At the IAA Transportation conference in Hannover, ten Chinese truck manufacturers participated, matching the presence of European and U.S. firms. McKinsey reports that Chinese manufacturers can offer trucks 30% to 40% cheaper thanks to advanced battery technology, rapid development processes, and high production volumes in China, where 30% of trucks are already electric. In contrast, in Europe, only about 5% of new trucks in the first half of the year were electric. European manufacturers are keeping prices high to recover investments, with limited availability on the roads currently. However, a McKinsey analyst, Matthias Kässer, forecasts that Chinese electric trucks could capture double-digit market shares in Europe by 2035.

There is rising concern in the European heavy-duty truck industry that they may face a situation similar to that of the automotive sector, where Chinese electric vehicles are making significant inroads. Unlike typical car buyers, truck customers require extensive services, and while European firms have well-established service networks, Chinese companies are aware of these gaps. Cook Xue, a key executive at Geely's Farizon, acknowledges that while price is critical, expanding service capabilities is also essential. Their Homtruck model is currently undergoing European compliance testing.

Another Chinese giant, BYD, is making a push into the truck market, promising a complete service package including financing, solar-powered charging stations, and a repair network. BYD revealed its flagship ETT 40 model at Hannover, scheduled for market introduction in 2027. BYD Deputy Chief Stella Li emphasizes offering comprehensive service solutions to fleet customers.

European manufacturers such as Daimler Truck, Volvo, and Traton are advocating for fair competition. Alexander Vlaskamp, head of Traton's MAN subsidiary, expresses concern over what he sees as unfair subsidies for Chinese companies, urging the EU to impose import duties similar to those on electric cars. Moreover, Vlaskamp warns that the EU should avoid penalizing local industries if they fail to achieve a 40% electric truck target by 2030. This target is essential for achieving a 43% reduction in carbon dioxide emissions from new vehicles. A significant challenge remains the lack of charging infrastructure, with only 730 fast charging points available against an estimated need of 35,000 by 2030. Daimler Truck warns that without addressing this infrastructure gap, the European operations of Mercedes-Benz could face significant fines by 2030.

Source: n-tv.de