BYD, Xpeng, and SAIC may not be familiar names in the United States, but these companies are rapidly establishing themselves as automotive giants in other countries. At the same time, significant transformation is taking place in the medium and heavy-duty (MHD) truck sector, as the necessary charging infrastructure develops.
China’s heavy-duty truck industry has experienced remarkable growth and transformation in recent years. It is emerging as a dominant force in the global market. Sales figures show that Chinese truck sales have risen from 500,000 vehicles in 2015 to around 1.5 million units a year. This success is particularly noteworthy given the historical context of the automotive industry. While Germany and France pioneered automobile development in the 19th century and the United States quickly rose to dominance in the mid-1900s, China’s came into the market relatively late. Yet this late entry has helped its rapid ascent in the heavy-duty truck sector.
Road freight transport is the backbone of global trade and commerce. Trucks move most of our daily necessities, including food, electronics, appliances, and clothing. In 2023, approximately 12.1 billion tons of U.S. domestic freight shipments (about 80%) were transported by commercial trucks.
Today, China’s truck industry stands as one of the world’s significant powerhouses, led by three brands at the forefront of innovation, production, and sales:
First, there’s Sinotruk (China National Heavy Duty Truck Group Co., Ltd.), which was established in 1956 and is the market leader, producing around 230,000 trucks. Sinotruk has a strong overseas presence in over 110 countries and is now focusing on new energy trucks and intelligent driving technologies, reinforcing its leading position in the market.
Second, there’s Dongfeng Motor Corporation, commonly known as Dongfeng Motor, which is another major player in China’s market. Founded in 1969, Dongfeng offers many light and heavy-duty trucks from class 4 to 8. The company’s innovations include developing electric and hybrid trucks to meet the growing market demand for electrified vehicles.
Third, there’s FAW (First Automobile Works) Jiefang, which is China’s oldest truck manufacturer, with a history of over 60 years. Known for producing high-quality trucks, FAW has committed significant resources to research and development, resulting in a vast lineup that caters to vocational and off-road sectors.
These three companies hold over 60% of China’s truck market and compete internationally. Their investments in research and development have led to advancements in vehicle technology, safety, and environmental performance globally.
The truck sector is critical in shaping global supply chains and driving decarbonization efforts. Although freight trucks and buses account for only around 4% of the vehicles on the road, they are responsible for about 36% of on-road greenhouse gas emissions, equivalent to around 5% of global CO2 emissions (as of 2020). This sector is vital for accelerating the decarbonization of transport, which is currently not meeting targets for deceleration. Emissions are currently decreasing by about 2% per year, but a reduction of 15% is necessary by 2030 to meet the net-zero emissions targets outlined in the Paris Agreement by 2050.
Heavy-duty electric trucks could significantly reduce pollution at ports and rail stations. Environmental and political organizations are increasingly advocating for zero-emission trucks, which are expected to become mainstream by the end of this decade. The Chinese market offers various battery and electric powertrain solutions, including battery swapping for electric trucks, LNG, and fuel cell technologies. The Chinese are building everything now. Chinese trucks are found throughout the Asian, African, and South American continents today.
For American truck manufacturers (OEMs), timing is crucial in choosing the right technology for the near future. There is a unique opportunity to adapt roadmaps and integrate new technologies, thereby participating in the growth and shaping the industry’s future at national and international levels.
Allow me to remind you that China already controls the global container market. Westerners are already concerned about the influx of Chinese battery electric passenger cars and trucks. So, it’s vital to consider how we’re going to feel about the prospect of overwhelming Chinese dominance in a sector that transports almost all of our daily goods around the world.
