Inside the world’s largest commercial vehicle market

What’s happening inside the world’s largest commercial vehicle (CV) market? GIANENRICO GRIFFINI travelled to the China Commercial Vehicles Show (CCVS) in Wuhan to find out.

China, long recognised as a high-technology industrial power, is rapidly transitioning to alternative traction systems to decarbonise road transport. The latest evidence comes from medium- and heavy-truck registration data, as well as from the CCVS.

Growth in alternative drivelines has been particularly striking over the past two to three years. The first turning point occurred roughly two-and-a-half years ago, when operators began shifting rapidly from diesel engines to liquefied natural gas (LNG), largely for cost reasons. Manufacturers responded quickly; a practical solution involving one or two cryogenic tanks mounted behind the cab of 6×4 tractors became widespread. These vehicles are typically configured for 49-tonne combinations, by far the most common transport configuration in China.

Battery-electric trucks gain momentum

A second turning point is linked to the rapid growth of battery-electric trucks. According to data reported by the International Council on Clean Transportation (ICCT), in 2024 battery-electric vehicles (BEVs) accounted for 13% of the market for vehicles above 14 tonnes, compared with 57% for diesel trucks and 29% for gas trucks. In the medium-duty segment, BEVs represented around 14%, compared with 81% for diesel and 3% for methane-powered trucks.

Overall, including medium-duty vehicles, heavy-duty vehicles and buses, approximately 230,000 zero-emission vehicles entered service – an exceptionally high figure by global standards. During the first half of 2025, meanwhile, the BEV share among heavy goods vehicles (primarily semi-trailer tractors and tipper trucks) rose further to 22%. Diesel fell to 52%, while gas models accounted for 25%. The electrification trend also affected the medium-duty segment, where BEVs represented 17% of registrations, compared with 76% for diesel engines and 5% for natural gas units.

TCO drives change

As in many other markets, purchasing decisions by Chinese transport operators are strongly influenced by total cost of ownership (TCO). Energy price remains a decisive factor.

In China, the average cost of sulphur-free diesel ranges from 6.6 to 6.8 yuan (R17.20 to R17.70) per litre. LNG is sold at 3.5 to 4.1 yuan (R9.10 to R10.70) per kilogram. At public charging stations, electricity prices range from 1.1 to 1.5 yuan (R2.90 to R3.90) per kWh, helping to explain the rapid expansion of BEVs.

Hydrogen is another energy carrier receiving significant attention. According to the National Energy Administration (NEA), producing one kilogram of hydrogen costs about 28 yuan (R72.80) compared with more than €8 (R160) in Europe, while the purchase price for end users is approximately 48.6 yuan (R126.40).

In this evolving environment, BEVs and fuel cell trucks already play (and will increasingly play) a decisive role in helping China reach carbon neutrality by 2060.

Ambitious electrification and the rise of battery swapping 

China has set ambitious targets for the development of electric mobility, including both battery-electric and hydrogen fuel cell vehicles. The transition is supported by a comprehensive ecosystem actively promoted by the central government and provincial authorities. Electricity generation capacity is expanding rapidly, supported by increased reliance on wind and solar power. Large-scale energy storage installations are also growing to compensate for the variability of renewable sources.

Charging infrastructure is being expanded nationwide, while automated battery-swap systems are spreading quickly within the heavy-truck sector. These systems enable entire battery packs to be replaced in just five to eight minutes, eliminating lengthy charging stops. This solution also reduces the initial investment required for zero-emission vehicles because the battery – often nearly as expensive as the truck itself – can be rented rather than purchased.

Data from the first half of 2025 indicates that approximately 20,400 heavy goods vehicles, representing about 30% of electric trucks, are equipped with rapid battery-replacement systems.

The widespread adoption of battery swapping highlights the pragmatic approach taken by Chinese manufacturers and operators in accelerating electrification.