Electric Trucks may Lead China’s EV Market in the Future

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Electric Truck - Electric Trucks may Lead China's EV Market in the Future

With the continuous growth of its cruising range, the green energy conservation and environmental protection policies advocated by the state, electric vehicles (EV)  have become the development trend of the vehicle industry in the future. China’s EV market is developing rapidly, and the development prospects of electric trucks are especially favored by the industry insiders. E-trucks may lead the future EV market in China.

Also Read: The Future of Electric Vehicles Depends on the Chinese Market

An electric car startup of China Singulato Motors has just broken ground for a new factory in the southern Chinese province of Hunan. Singulato Motors plans to open the e-truck plant by 2020 and produce 50,000 electric vans per year.

Last year, all-electric and plug-in hybrid electric light-duty commercial vehicles sold about 200,000 in China, accounting for about 6% of the truck market below 6 tonnes. More than just Chinese automakers, a growing number of overseas automakers are focusing on China’s future E-trucks market.

Nissan Motor Co. is one of the first global automakers in China to develop an e-truck line-up through a joint venture with Dongfeng Group. The company believes that demand for light-duty e-trucks will quadruple in four to five years. Its joint venture Dongfeng Motor Co. Ltd. plans to increase the sales of electric commercial vehicles by six times to 90,000 by 2022.

Nissan’s partner Renault SA also participates in the case. The company’s new joint venture with Brilliance China Automotive Holdings Ltd. plans to launch three electric delivery vans within two years starting next year. BYD and Geely, supported by Warren Buffet, also introduces some electric trucks and vans on the market.

The booming e-commerce, Chinese government’s regulation of pollution, generous subsidies from the government, and the robust market demand for light-duty trucks are all important reasons for investing in the Chinese e-trucks market.

The subsidy of the Chinese government alone is as high as 100,000 yuan, helping to promote this shift. Nissan’s most popular electric commercial vehicle, the Dongfeng D94 van, is eligible for combined subsidies of up to about 80,000 yuan from the central government and local authorities, reducing its a third of car purchase price.

More than 20 cities, including Beijing, Shanghai and Guangzhou, have imposed restrictions on fossil fuel trucks entering the city centers. For example, Beijing last year banned heavier trucks from entering the city center between 6 am and 11 pm, diesel and other commercial vehicles will be further restricted next year.

As more and more people shop online, online retailers and parcel companies are looking for solutions that enable them to deliver ordered items as quickly as possible. The prospect of electric delivery vans has a bright future.

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