China produces the largest selection of battery electric heavy-duty vehicles
Chinese OEMs currently produce by far the largest number of models of battery electric HDVs – 430 in total – with a particular focus on buses suitable for urban public transport, which make up almost 40% of all models.2 In 2021 alone, Chinese OEMs released almost 150 bus models, providing more choice and covering more applications in what was already the world’s largest electric bus market. Since 2021, the number of additional new models has continued to grow, but with a more even distribution across different segments – over 65 new models for buses, and around 40 each for medium-duty and heavy-duty trucks – thereby enabling wider electrification. A significant number of models is now available in each segment in China.
North American OEMs produce a far smaller number of battery electric models – over 170 – with a greater emphasis on the medium-duty truck market, which accounts for more than 60% of all models. New brands such as Rizon are targeting the electric medium-duty segment in North America, where despite their higher upfront costs, electric trucks are already competitive with diesel trucks in terms of total cost of ownershiplifetime costs, especially when charged at depot as opposed to higher-cost public charging. Costs are even more competitive when factoring in incentives available in the UnitedStates and Canada. Though both the UnitedStates and Canada also have policy incentives specifically targeting buses, they have relatively small public transport markets and, as a consequence, buses suitable for urban public transport make up just over 10% of all models. Instead, OEMs have targeted the school bus niche, producing nine different models excluding minibuses.
Despite producing a lower number of battery electric models overall, at around 120, European OEMs offer the most even distribution of models across segments. They also have the highest share of heavy-duty trucks, with more than 20% of all models. This has allowed European OEMs, in particular the Volvo group (which includes the Mack, Renault, and Dongfeng (joint venture) truck brands), to gain a large share of not only the European, but also the North American heavy-duty electric truck market. European OEMs also produce a significant number of niche vehicles such as refuse trucks (around 10% of all models), which – like medium-duty trucks – are already cost-competitive with their ICE counterparts.
On average, individual Chinese OEMs produce more models across segments, which differentiates Chinese OEMs from those in other regions. Only about half of Chinese OEMs produce models for a single segment, compared to around 70% in North America and Europe.
Model availability is a key indicator of the growing maturity of the battery electric HDV market, but the number of OEMs is also important for assessing competition and ability to meet future demand.
The number of OEMs producing electric HDVs in China trebled between 2020 and 2023, from 12 to 36, in response to increasing sales of electric trucks domestically, as well as increasing electric bus sales abroad. In addition to growth in the number of Chinese OEMs, companies such as BYD, Skywell, Dongfeng and Foton have also expanded their offerings, with models in the bus, MD truck, and HD truck segments, offering potential advantages in terms of economies of scale and supply chains. The strength of the domestic market may also have allowed Chinese firms to build more robust supply chains.
North America also experienced an almost threefold increase in the number of HDV OEMs between 2020 and 2023, from 16 to 45. Early support in states such as California and anticipation of national policies supported investment in HDV manufacturing, which was later boosted by demand incentives and regulations. United States-based OEMs typically specialise in models for a smaller number of segments than Chinese OEMs. Only Lion offers vehicles in the bus, MD truck, and HD truck categories, along with Exro’s recently acquired SEA Electric, which builds vehicles for different applications by adapting its powertrain to glider chassis platforms from other OEMs.
Europe had the highest number of HDV OEMs in 2020, but still saw a 50% increase between 2020 and 2023 to reach 36, the same number as China but less than the United States. Established OEMs such as Volvo Trucks, MAN, Mercedes, and Quantron offer vehicles in three or more segments. This wide range of offerings, coupled with an already strong position in the global market, and relatively low sales shares in Europe prior to 2023, meant there was less space for new entrants to compete.
Manufacturers in the rest of the world have not responded to the electric HDV opportunity in the same way, mirroring the slower uptake of electric HDVs to date and fewer supportive policies than in leading electric HDV markets. Of the OEMs outside of China, North America and Europe, nine produce models in the bus segment alone, with India’s Tata Motors producing both buses and MD trucks. Korean OEM Hyundai produces only FCEV HDVs, while only three Japanese OEMs feature in the database.
