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New-energy heavy-duty truck sales soared in December!

In December 2021, the new-energy heavy-truck market could no longer be described simply as “reaching a new high”; instead, terms like “off the charts” and “explosive growth” were more fitting. Why did sales of new-energy heavy trucks surge to unprecedented levels in the final month of 2021? And how did this segment perform over the entire year? Read on for an analysis from First Commercial Vehicle Network. As is well known, in 2021, China’s new-energy heavy-truck market experienced sustained, rapid growth, emerging as one of the most dynamic segments within the broader heavy-truck industry. Particularly after the second half of the year, while the conventional fuel‑powered heavy-truck market languished, new-energy heavy trucks continued to set record highs, with monthly sales figures repeatedly broken—truly commanding attention and becoming the standout performer in the second-half heavy-truck market.

Release Date:

2021-12-24

In December 2021, the new-energy heavy-truck market could no longer be described simply as “reaching a new high”; it was better characterized as “off the charts” and “booming.”

Why did new-energy heavy-truck sales surge to a new high in the final month of 2021? And how did this segment perform over the entire year?

Please see the analysis report brought to you by First Commercial Vehicle Network.

As is well known, in 2021, China’s new‑energy heavy‑truck market experienced sustained, rapid growth, emerging as one of the most dynamic segments in the heavy‑truck industry. Particularly after the second half of the year began, while the conventional diesel‑powered heavy‑truck market languished, the new‑energy segment continued to hit record highs, with monthly sales figures repeatedly broken—truly commanding attention and earning the title of “the star of the show” in the second‑half heavy‑truck market.

According to the latest data compiled by First Commercial Vehicle Network, in December 2021, China’s new‑energy heavy‑truck market recorded total sales of 3,006 units—based on compulsory insurance‑registered terminal sales, excluding exports and military vehicles, the same applies hereafter—up 867% year over year. Following three consecutive months of “thousand‑unit‑level” performance in September, October, and November, December once again set a new monthly sales record for the new‑energy heavy‑truck segment, with month‑over‑month growth of 62% and a staggering year‑over‑year surge of 867%, surpassing the 668% YoY increase seen in November and marking the largest year‑on‑year jump since 2021. Throughout 2021, the new‑energy heavy‑truck market maintained robust, even explosive, growth for ten straight months, with year‑on‑year gains exceeding 100% in nine of those months; in the most recent five months from August to December, average growth reached an impressive 498%. For the full year 2021, cumulative sales in the new‑energy heavy‑truck sector totaled 10,448 units, up 299% year over year. While such rapid expansion was hardly surprising, the market’s first-ever突破 of the 10,000‑unit threshold has undoubtedly bolstered confidence across the entire industry chain, from upstream suppliers to downstream manufacturers.

According to an analysis by First Commercial Vehicle Network, in addition to robust growth in market demand, one key reason for the explosive surge in sales of new‑energy heavy trucks in December was the phasing out of subsidies. Under the “Notice on Improving the Financial Subsidy Policy for the Promotion and Application of New‑Energy Vehicles” (Cai Jian [2020] No. 86), jointly issued in 2020 by several major ministries and commissions, the implementation period of the financial subsidy policy was extended to the end of 2022, taking into account technological progress, economies of scale, and other factors. The notice also stipulated that the pace and magnitude of subsidy reductions would be gradually moderated: in principle, subsidy levels for 2020–2022 would decline by 10%, 20%, and 30% respectively, compared with the previous year—this applied to non‑public‑sector vehicles. In other words, for pure‑electric heavy trucks registered by the end of 2021, unless they are used in public‑sector applications such as sanitation or urban delivery, the maximum per‑vehicle subsidy is capped at RMB 40,000—a 20% reduction from the 2020 level of RMB 50,000. By contrast, if such a vehicle is registered in 2022, the maximum subsidy drops to just RMB 28,000, representing an additional 30% cut from the 2021 cap of RMB 40,000.

Accordingly, spurred by the sharp phase-out of new‑energy vehicle subsidies, both heavy‑truck manufacturers and operating entities rushed to register their vehicles before December 31, 2021, which significantly fueled the explosive growth of the new‑energy heavy‑truck market in December 2021.