China’s Electric Truck Boom: 175% Surge Crushes Diesel Demand in Critical Industries

China's freight sector just got a jolt of lightning—electric truck adoption skyrocketed 175% in a single year, leaving diesel guzzlers in the dust.

Green Giants Take Over

Logistics hubs now hum with battery-powered rigs hauling everything from steel to semiconductors. The switch slashes emissions—and dependency on volatile fuel markets (take notes, oil traders).

Infrastructure Charges Ahead

Megawatt charging stations pop up faster than speculative crypto projects, while manufacturers retool factories. One difference: these EVs actually move physical goods.

The Bottom Line

When even hardcore industrial sectors ditch fossils for electrons, you know the energy transition isn't just virtue signaling—it's profit-driven inevitability. Diesel's days? Numbered like a legacy bank's blockchain strategy.

TLDRs;

• China’s electric truck market jumped 175% in H1 2025, slashing diesel consumption across industrial sectors.
• Diesel demand is projected to drop 6.3% this year, pushing China’s oil peak forecast to 2025.
• Fleet operators are embracing electric trucks due to lower long-term costs and government subsidies.
• Rapid charging infrastructure expansion supports the electric freight transition across major routes.

China is witnessing a dramatic shift in its commercial transport landscape, as electric heavy trucks rapidly gain traction across key industrial sectors. In the first half of 2025, sales of new energy trucks surged 175% compared to the same period last year, reaching over 76,000 units.

According to data from Sublime China Information (SCI), nearly all of this growth, over 90%, came from electric trucks, now comprising roughly a quarter of all new truck sales in the country.

This acceleration is already reshaping China’s diesel consumption profile. SCI forecasts a 6.3% drop in diesel use this year alone, with additional declines expected as more companies turn to electric alternatives. These changes are particularly impactful given that the transportation sector consumes about two-thirds of all diesel in China.

China’s Truck Market Goes Electric FasT

The rapid adoption of electric trucks is pushing China’s energy analysts to revisit their forecasts. Rystad Energy, a global research firm, now expects China’s oil consumption to peak in 2025, one year earlier than previously predicted. This revision reflects a broader trend in the country’s energy profile, where electrification of commercial vehicles is no longer theoretical but visibly changing demand patterns.

Long considered a difficult sector to electrify due to long-distance hauls and heavy payloads, the commercial truck market is now proving more adaptable than expected. Fleets operating in ports, steel mills, and mining areas are particularly enthusiastic adopters, where route predictability and operational efficiency are key advantages of electric vehicles.

Oil Demand Peak Moved Closer

One of the key drivers behind this surge is not just environmental policy but pure economics. Despite their higher upfront cost, electric trucks are proving cheaper over time. For a typical million-kilometer lifecycle, electric trucks now cost approximately 15% less than diesel counterparts.

Stable electricity prices and lower maintenance requirements give operators more predictable expenses than the fluctuating cost of diesel.

To further ease the transition, the Chinese government introduced generous subsidies last year, offering up to 95,000 yuan (around US$13,250) per electric truck. These incentives are helping fleet operators offset initial costs and invest in more sustainable fleets. The result is not just rising electric truck sales, but also a decline in alternative fuels such as LNG, which saw a 15% year-on-year drop.

Charging Network Fuels Adoption

China’s proactive investment in infrastructure has been essential in facilitating this transition. EV charging provider Teld, for instance, has constructed more than 2,400 truck charging stations and recently launched an 800-kilometer corridor linking key coal and steel regions.

This level of infrastructure is transforming long-distance transport, enabling trucks to operate on demanding routes with minimal range anxiety.

Drivers are already experiencing the benefits. With expanded fast-charging networks along logistical corridors, electric trucks are increasingly capable of matching or exceeding the utility of diesel fleets. The success of this approach demonstrates how coordinated efforts between industry and government can eliminate traditional adoption barriers.