China’s big trucks go electric and abroad as subsidies help pave road to net-zero freight

Domestic makers of heavy-duty trucks are emerging as the latest beneficiaries of accelerating electrification on China’s roads, as technological gains and lower ownership costs are bolstering overseas sales amid a global energy crisis.

Southeast Asia and Africa, where Chinese makers have already established overseas assembly hubs, were expected to serve as new growth engines for companies ranging from FAW Jiefang to Foton Commercial Vehicles, according to analysts at S&P Global Ratings.

The two markets “will remain key export destinations for Chinese manufacturers, supported by competitive pricing, strong loading capacity, and a broad product portfolio,” the rating agency said in a late-May research report.

The finding came after Chinese truck makers reported a 33 per cent year-on-year jump in overseas sales during the first quarter of 2026. Export volumes topped 100,000 units, representing more than 30 per cent of their total deliveries, according to the China Association of Automobile Manufacturers.

Buoyed by the rapid development of battery technology and by government subsidies, the cost of owning a pure electric heavy-duty truck – with a gross weight of at least 14 tonnes – has nearly reached parity with its diesel-powered counterpart, according to Chen Jinzhu, CEO of the Shanghai Mingliang Auto Service consultancy, noting that units were priced at about 500,000 yuan (US$73,500) after subsidies.

Under Beijing’s trade-in award policy, a buyer replacing an old truck with an electric heavy-duty truck can receive up to 140,000 yuan from the government as China promotes its decarbonisation drive.