After infiltrating the European market with dozens of electric passenger cars, Chinese manufacturers are now looking to do the same for the truck market. According to Reuters, at least six manufacturers are planning to enter Europe with electric trucks that are up to 30 percent cheaper than European rivals.
With the domestic market pretty much saturated, due to the loss of Western automakers, Chinese car manufacturers have invested heavily in exporting their vehicles to global markets, including Europe – a necessity to grow and become the world’s largest manufacturing power.
This was not easy to do previously, mainly thanks to European expertise in combustion engines, but in the EV era, things are different. Chinese manufacturers can offer competitive, fully equipped vehicles at much lower prices because a large part of the electronics and battery supply chains are in Chinese hands. And now, it seems that electric trucks are next on the list.
Six Chinese manufacturers are ready to launch
According to Reuters, at least six Chinese manufacturers are gearing up for an assault on the European truck market: BYD, Farizon, Sany (China’s top-selling electric truck brand), Sinotruck, Windrose, and SuperPanther.
We’ve heard of Windrose before: the start-up plans to build its electric trucks at the port of Antwerp. The Windrose trucks claim a 670-km range for a €250,000 price tag, undercutting most European rivals while offering more range.
Own supply chains and economies of scale
But others might go cheaper still. According to Reuters, Chinese manufacturers are aiming for a price tag 30 percent below the average of €320,000 for a new electric heavy truck.
These cost savings come not only from lower material costs but also from economies of scale. In China, zero-emission heavy-duty trucks make up 29 percent of sales, compared to just 4.2 percent in Europe last year. The high purchase prices and limited charging infrastructure for trucks make transporters hesitant to make the switch.
But if Chinese brands can bring vehicles to market at competitive prices, the TCO calculations may swing in their favor after all. And while European manufacturers are developing more capable zero-emission models each year, the pace of development in China is much greater, thanks to massive resources and a ‘less talking, more doing’ work culture.
Delaying the CO2 targets as a stopgap solution?
Meanwhile, European manufacturers are trying to delay decarbonization deadlines imposed by the EU. With the low uptake of electric trucks and the charging infrastructure still lacking (a chicken-and-egg situation in itself), the ACEA has urged to soften the 2030 and 2040 CO2 targets for heavy-duty vehicles. If that does happen, the Western truck manufacturers have a bit more breathing room. If not, it seems China will be ready to fill any market gaps.
