Electric Heavy Trucks: Opportunities and Challenges in Southwest China

Under the leadership of the 'dual carbon' goals, new energy heavy trucks have become a key force for green transformation in the transportation sector. In Southwest China, with abundant resources and significant industrial transport demands, it should be an important market for new energy heavy trucks. However, the unique high-altitude mountainous terrain poses various challenges for the operation of these trucks. Can establishing an electric heavy truck fleet in Southwest China be profitable? 1. Market Pain Points in Southwest China: Many Mountain Roads, Steep Gradients, and High Energy Costs Southwest China is primarily characterized by plateau and mountainous regions, with roads that are winding, steep, and complex. Operating heavy truck fleets in such conditions presents enormous challenges. First, vehicles must frequently accelerate and decelerate while climbing hills, which places high demands on their power performance. The frequent high-load operation significantly increases fuel consumption for traditional diesel heavy trucks. Compared to flatland areas, using traditional diesel trucks in Southwest China leads to higher energy consumption, resulting in elevated transport costs and squeezing the profit margins of logistics companies. Faced with higher energy costs compared to flatland areas, switching to electric heavy trucks can reduce expenses to some extent, especially by charging during off-peak hours at lower electricity rates. However, electric heavy trucks face challenges in Southwest China as well; for instance, under full load while climbing, their energy consumption rises sharply, drastically reducing their range. In some steep, winding mountain roads, the actual range of electric heavy trucks may only be 60%-70% of what it would be in flat areas. Moreover, the complex terrain makes it exceedingly difficult to build large charging stations for heavy trucks. On one hand, construction challenges increase due to the terrain, leading to significantly higher construction costs; on the other hand, high land acquisition costs and inadequate power supply infrastructure also restrict the development of charging stations. This makes the refueling convenience of electric heavy trucks far inferior to that of traditional diesel trucks, impacting fleet operational efficiency. On August 10, a conference titled 'Green Power in Southwest: Linking Mountains and Seas - 2025 Southwest China New Energy Heavy Truck Logistics Innovation Conference' will be held in Guizhou, where successful electric heavy truck logistics fleets will share their experiences and engage in dialogue. All major operators are welcomed to attend. 2. Rapid Policy Drive Fuels Electric Heavy Truck Sales in Southwest Since 2023, the Guizhou Provincial Government has been actively promoting the use of electric heavy trucks, issuing guiding opinions for the construction of 'Electric Guizhou,' which aims to widely promote new energy heavy trucks in the province and introduce various favorable policies to fully support their operation. On October 27, 2023, the Guizhou Provincial Government released guidelines to accelerate the high-quality development of the new energy vehicle industry, emphasizing the importance of promoting new energy heavy trucks in key areas such as mines and coal-fired power plants and facilitating the orderly replacement of diesel heavy trucks. At the same time, it encourages innovative business models and strengthens financial service support. On November 27, 2024, the Guizhou Provincial Government issued a notice to further promote a series of policy measures aimed at supporting economic recovery, including adding National IV diesel trucks to the old-for-new replacement program, further stimulating market demand for new energy heavy trucks. Direct stimulation from a series of policies has led to explosive growth in the electric heavy truck market in Southwest China. From January to May this year, Guizhou Province sold over 1,500 electric heavy trucks, representing a growth of over 1000% compared to the same period last year. The strong support of policies provides a favorable environment for establishing electric heavy truck fleets in Southwest China. 3. Application Potential of Electric Heavy Trucks in Southwest In light of the unique operational conditions in Southwest China, vehicle manufacturers need to actively respond by developing corresponding models designed for complex terrains and specific scenarios. For example, products under the Guizhou Heavy Truck brand have been enhanced for climbing angles and power, improving vehicle performance and traction in mountainous areas while reducing energy consumption and operational costs. Additionally, the industry needs to explore suitable refueling models for complex terrains, such as smaller liquid-cooled charging piles and containerized battery swap stations. As technology continues to advance and improve, the applicability of electric heavy trucks in Southwest China will gradually increase, and the range of application scenarios will continue to expand. The strong push from initial favorable policies for electric heavy trucks has also attracted significant resources such as capital and technology to Southwest China. As the usage of electric heavy trucks increases and multiple operators running fleets of over a hundred trucks emerge, the market will undergo a new round of changes. The downstream ecosystem including after-sales maintenance and charging services will draw more investment, forming a comprehensive service system that alleviates concerns about fleet operations. Upstream freight owners will also readjust pricing rules according to the characteristics of electric heavy trucks. With relatively low operating costs for electric heavy trucks, if freight owners can reasonably adjust their pricing, they can meet their transportation needs while allowing logistics companies to achieve reasonable profits, creating a win-win situation that further promotes the large-scale operation of electric heavy truck fleets in Southwest China. Conclusion The establishment of electric heavy truck fleets in Southwest China presents significant development opportunities, supported by policies and observable sales growth. However, market pain points cannot be overlooked, as terrain factors pose operational challenges for both traditional diesel and electric heavy trucks. Nonetheless, with technological improvements and the gradual enhancement of the market ecosystem, electric heavy trucks still hold considerable application potential in Southwest China. For companies and individuals interested in establishing electric heavy truck fleets in Southwest China, the conference on August 10 will feature electric heavy truck operators with successful operational experiences in the region sharing insights and engaging in discussions.