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Chinese electric trucks could arrive within a year. What happens to the value of your used diesel truck?

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Several Chinese brands could launch electric trucks in the UK and EU within the next twelve months, at prices only slightly above comparable diesel models. That was one of the messages from a decarbonisation summit for the road transport industry. For hauliers, the change could affect not only what they buy next, but also what their current diesel trucks will be worth.

There is a person behind this text – not artificial intelligence. This material was entirely prepared by the editor, using their knowledge and experience.

Key points

  • Multiple Chinese brands are expected to enter the UK and EU truck markets within 12 months, with prices only slightly above diesel.
  • Electric trucks account for around 6% of the market in the UK, around 20% in Switzerland and around 50% in China, panellists said.
  • Chinese makers are launching the same trucks in Africa and South America, traditional buyers of end-of-life UK diesels.
  • Policy uncertainty and the lack of a charging infrastructure strategy remain the main barriers.

The discussion at the Motor Transport Decarbonisation Summit was reported by the Road Haulage Association (RHA). The question on the table was whether the industry should prioritise resilience over decarbonisation, or whether it can have both. The panel generally agreed that both are possible, even though the industry is still working against policy uncertainty and other barriers.

Chinese trucks: close to diesel prices

According to the speakers, multiple Chinese brands are expected to enter the UK and EU markets within the next year. This would “substantially widen” the choice of electric trucks.

The key point for operators is price. The trucks are expected to cost only slightly more than comparable diesel models, with lower running costs over their lifetime. This would be the case even in the UK, which has some of the highest electricity prices in the world. The batteries, vehicle systems and tyres are also expected to be Chinese-made.

European makers are watching closely: Scania has turned China into a test bed as rivals target Europe. Meanwhile, analyses show that electric trucks are already beating diesel on cost on some routes.

A risk at both ends of a diesel truck’s life

One point raised at the summit concerns the value of the diesel trucks operators already own. Chinese manufacturers are launching the same electric trucks in Africa and South America. These markets have traditionally bought end-of-life UK diesel trucks.

If buyers there switch to cheap Chinese electric trucks, demand for used British diesels could fall. The panel said this could affect the UK market at both ends of a diesel truck’s life: when it is bought new and when it is sold on.

For operators who plan their fleet finances around a resale value at the end of a lease or loan, this is a risk worth watching.

UK lags behind with 6%

The panellists put the share of electric trucks at around 6% in the UK, compared with around 20% in Switzerland and around 50% in China. Panellists described the pace of change since last year’s summit as “staggering”.

The barriers they listed were:

  • policy uncertainty,
  • no infrastructure strategy, including for charging,
  • a government that steers through regulation rather than incentives,
  • the effort, risk, cost and time of buying the first electric truck,
  • a highly competitive sector that has historically collaborated poorly.

Collaboration is changing, however. Shared charging, including with bus operators, is now common among electric fleets.

Professor David Cebon, director of the Centre for Sustainable Road Freight at the University of Cambridge, said the industry started with the heaviest trucks. It might have made more sense to begin with smaller vehicles on last-mile and middle-mile work, and use the lessons for long-haul.

What it means for hauliers

Cheaper electric trucks would remove one of the biggest barriers to switching. But price is only part of the business case. Operators still need depot charging, and the UK’s largest trial showed how charging and range shape daily mileage. In Europe, the advantage of electric trucks will also change when their toll-free ride ends.

For fleet owners, the practical question for the next year may be less “when do we buy electric?” and more “what will our diesel trucks be worth when we do?”.

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