Soaring electric truck sales cut into diesel consumption in China

Electric heavy trucks are rapidly gaining market share in China, driven by subsidies and the quick rollout of chargers. Reuters reports that this is cutting into diesel usage and denting oil demand from the world’s biggest crude oil importer.

EVs aren’t the only factor in the diesel decline—the rise of LNG-powered heavy trucks and recently, slowing economic growth, have also reduced demand for diesel. But surging sales of EVs are causing analysts to revise previous projections. Consulting firm Sublime China Information (SCI) estimates that sales of new energy trucks rose 175% year-over-year in the first half of this year, representing about a quarter of new truck sales. Battery-electric models, mostly used for short-haul runs around ports, mines and factories, accounted for over 90% of that increase.

SCI analyst Xu Lei told Reuters that the firm has cut its forecast for China’s diesel demand by 1%-2%. Diesel consumption this year is now forecast to fall by 6.3%. A similar decrease was seen last year.

“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,” Ye Lin, VP of Rystad Energy, told Reuters. Rystad expects China’s transport sector to use 40% less diesel by 2030, cutting overall consumption by about a quarter compared to 2024 levels.

The bull market for electric trucks is partly due to cheap electricity and government subsidies of up to 95,000 yuan ($13,264) for new vehicles. China’s rapid rollout of charging infrastructure along industrial corridors is another factor. Infrastructure provider Teld has built more than 2,400 truck charging stations across China, and recently opened an 800 km corridor linking Shanxi and Shandong provinces, a key route through the country’s coal-producing region.

Source: Reuters

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