China's e-trucks target diesel

Electric-powered heavy trucks are rapidly gaining market share in China, driven by subsidies and the quick rollout of chargers, further curbing diesel usage and denting oil demand from the world’s biggest crude importer.

- SAM LI LEWIS JACKSON

The boom in electric truck sales in China follows that of electric cars and the rise in recent years of LNG-powered heavy trucks. Those factors, combined with slowing economic growth, have stifled its oil consumption growth.

Sales in the world’s biggest market for new energy trucks are estimated to have risen 175% year-on-year to 76,100 in the first half of this year, or about a quarter of new truck sales, according to consulting firm Sublime China Information (SCI).

Electric models, still mostly used for short-haul runs in ports, mines or steel mills, accounted for over 90% of that increase.

The rapid pace has surprised analysts who have revised down diesel demand forecasts as a result and brought forward their predictions for a peak in Chinese oil demand.

SCI's analyst Xu Lei said he cut the firm's China diesel demand expectations by 1%-2% given the boom in electric truck sales.

“The surge in electric heavy trucks was a surprise and has become a new factor accelerating China's oil consumption to peak, most likely this year,” said Ye Lin, vice president at Rystad Energy, who had previously expected a 2026 peak.