Asia Pacific Electric Truck Market Outlook to 2028

Asia Pacific Electric Truck Market Overview

The Asia Pacific Electric Truck Market was valued at USD 2.2 billion in 2023, driven by increased government mandates on emission reduction, advancements in battery technology, and rising fuel prices, driven by the transition to electric commercial vehicles, primarily in China, Japan, and South Korea. With heavy investments in charging infrastructure and the adoption of electric trucks in logistics and transportation sectors, the market continues to experience rapid growth.

Prominent players in the Asia Pacific electric truck market include BYD Auto (China), Tata Motors (India), Dongfeng Motor Corporation (China), Hino Motors (Japan), and Hyundai Motor Company (South Korea). These companies have been investing in research and development to advance electric truck technology, focusing on increasing vehicle range, reducing charging time, and improving overall performance.

In 2023, BYD Auto, a major player in electric vehicles, announced its partnership with a Japanese logistics company to deploy 500 electric trucks across urban routes. The move is part of Japans green initiatives and aims to reduce carbon emissions by 35% in the logistics sector by 2025. This development aligns with government policies aimed at promoting electric vehicle adoption across various industries.

China dominates the Asia Pacific electric truck market share in 2023. Cities like Shanghai and Beijing lead in adoption due to favorable government policies, substantial infrastructure investment, and the presence of key manufacturers. Shanghai has become a hub for electric truck development, with over 10,000 electric trucks operating within the city. This dominance is likely to continue as China expands its New Energy Vehicle (NEV) policy and infrastructure in the coming years.

Asia Pacific Electric Truck Segmentation

By Propulsion Type The Asia Pacific Electric Truck Market is segmented by propulsion type into battery electric trucks (BEVs), hybrid electric trucks (HEVs), and fuel cell electric trucks (FCEVs). Recently, BEVs held a dominant market share due to advancements in lithium-ion battery technology and widespread adoption across logistics companies. Companies such as BYD and Hyundai have focused heavily on the BEV segment, with increased production capacity and improved battery performance.

By End-User Industry: The market is also segmented by end-user industries into logistics, public transport, and construction. Recently, the logistics segment accounted for the largest market share due to the increasing need for sustainable transportation solutions. The logistics sector in major cities like Tokyo and Seoul has embraced electric trucks, with companies adopting electric fleets to reduce costs and comply with emissions regulations. By Region: The Asia Pacific Electric Truck Market is divided into China, South Korea, Japan, India, Australia and Rest of APAC. China dominates the Asia Pacific electric truck market share in 2023. This dominance is driven by substantial government support through subsidies, extensive infrastructure development, and the presence of key manufacturers like BYD Auto. Major cities such as Shanghai and Beijing have adopted electric trucks for urban logistics, solidifying Chinas leadership in the market.

Asia Pacific Electric Truck Competitive Landscape

Asia Pacific Electric Truck Industry Analysis

Growth Drivers

• Government Incentives and Subsidies: In 2024, the Chinese government allocated $1.2 billion towards subsidies for electric vehicle (EV) manufacturers, with a significant portion earmarked for electric trucks. This financial boost helps manufacturers reduce production costs and makes electric trucks more affordable for end-users in key cities like Beijing and Shanghai. Additionally, India's FAME II scheme dedicated $1.4 billion in 2024 to accelerate EV adoption, including electric trucks, leading to an increase in fleet electrification for logistics companies.
• Charging Infrastructure Expansion: The Asia Pacific region is rapidly expanding its EV charging infrastructure. By the end of 2024, China will have added 300,000 public charging stations across major urban centers, catering specifically to commercial electric trucks. In India, the government announced a plan to install 500 new high-capacity charging stations along major highways to support long-haul electric trucks, contributing to increased market penetration in logistics.
• Battery Technology Advancements: Research and development in battery technology have led to significant improvements in range and charging efficiency for electric trucks. By 2024, lithium-ion battery costs decreased to $120 per kilowatt-hour, reducing overall truck manufacturing costs and enhancing the competitiveness of electric trucks compared to diesel alternatives. This reduction in battery costs allows logistics companies to expand their electric fleet and lowers operational expenses.

Challenges

• Inadequate Charging Infrastructure in Rural Areas: While urban areas in countries like China and Japan have seen significant growth in charging infrastructure, rural regions remain underserved. As of 2024, almost no rural logistics hubs in India have access to high-capacity charging stations, limiting the use of electric trucks in long-haul operations. This gap in infrastructure development continues to pose a challenge for the widespread adoption of electric trucks across the region.
• Battery Recycling and Environmental Concerns: By 2024, concerns around the disposal and recycling of lithium-ion batteries used in electric trucks have grown. The Asia Pacific region generated tons of lithium-ion battery waste annually, with limited recycling facilities available. The high cost and complexity of recycling batteries have created an environmental challenge, prompting governments to consider stricter regulations on battery disposal.

Government Initiatives

• Chinas New Energy Vehicle Policy: In 2024, the Chinese government continued to support its New Energy Vehicle (NEV) policy, which includes significant financial incentives for electric truck manufacturers. Under this policy, electric trucks are exempt from purchase taxes, resulting in savings of up to $8,000 per vehicle for logistics companies. This initiative has been a key driver in boosting electric truck adoption in cities like Beijing and Guangzhou, where emissions regulations are strict.
• Indias National Electric Mobility Mission Plan: Indias National Electric Mobility Mission Plan (NEMMP) aims to deploy 60,000 electric trucks by 2026. In 2024, the Indian government invested $500 million in building charging infrastructure in key logistics hubs, such as Mumbai and Chennai. This initiative includes grants and incentives for private companies to set up charging stations, facilitating the transition to electric trucks across the country.

Asia Pacific Electric Truck Future Outlook

The market is projected to grow exponentially, driven by an increased focus on sustainable transportation, ongoing infrastructure development, and advancements in battery technologies such as solid-state batteries. The push towards zero-emission logistics, coupled with favorable regulatory environments, is expected to further accelerate the adoption of electric trucks in the region.

Future Trends

• Advances in Solid-State Battery Technology
  By 2028, solid-state battery technology will become commercially viable for electric trucks, offering higher energy density and faster charging times. This technology is expected to extend the range of electric trucks, making them a competitive alternative to diesel trucks for long-haul transportation. Major players like BYD and Tata Motors are already investing in solid-state battery R&D to capture this future market.
• Government-Led Emission Reduction Targets: Governments in the Asia Pacific region will introduce stricter emissions regulations over the next five years, mandating that all new commercial trucks sold after 2028 must be electric or zero-emission vehicles. These regulations, combined with financial incentives for fleet electrification, will drive the transition to electric trucks, particularly in industries such as logistics and public transport.