The incentive policies cover a wide range of transportation equipment, including passenger cars, trucks, new energy buses and batteries, ships, and off-road agricultural machinery. Compared with the 2024 program, the 2025 program broadly follows the previous design, while extending the eligibility criteria and enhancing the incentive levels.

Highlights of the 2025 incentive policies include:

• The eligibility age of scrapping incentive for old passenger cars was extended in 2025, while the subsidy amounts remain at ¥15,000 for the replacement of an old car with a cleaner fossil fuel-powered car and ¥20,000 for replacing it with a new energy car.
• The old commercial China IV trucks are newly eligible for the program in 2025. Truck owners continue to receive subsidies for their early scrapping of old trucks before the mandatory retirement age and can receive additional subsidies for replacing them with new China VI trucks or new energy trucks, with the total subsidy amounts ranging from ¥10,000 to ¥140,000.
• The overall average subsidy per vehicle increased from ¥60,000 to ¥80,000 for the renewal of city buses aged 8 years and older, as well as batteries that are beyond their warranty period or do not meet safe operating conditions.

Table 1. Summary of key changes to incentive policies from 2024 to 2025

The post China’s expanded incentives for scrapping and replacing transportation equipment in 2025 appeared first on International Council on Clean Transportation.

中国2024 年 12 月发布了《中国关于加快建设开放统一交通运输市场的意见》，是即《交通强国建设纲要》和《国家综合立体交通网规划纲要》后又一关于交通运输系统的重要战略文件。本简报对该文件进行了简要介绍，并探讨在新战略下货运交通领域绿色低碳发展的政策机遇。

The post 《关于加快建设统一开放的交通运输市场的意见》中的低碳货运政策 appeared first on International Council on Clean Transportation.

Figure 2. Components related to low-carbon freight

The post Introduction to the low-carbon freight aspects of China’s Opinions on Accelerating the Construction of an Open and Unified Transportation Market appeared first on International Council on Clean Transportation.

研究结果表明，全球监管机构应当重视燃油加热器带来的潜在温室气体和污染物排放情况，及时针对燃油加热器制定新的排放标准或修改原有标准，通过严格的测试和监测来强化执行，以提高电动公交车和客车的环境效益，减少实际排放，促进向可持续交通的全面转型。

The post 电动客车燃油加热器排放：中国厦门测试案例 appeared first on International Council on Clean Transportation.

To provide quantitative data in support of future policy approaches, our study focuses on a broad set of pollutants, including greenhouse gases and PM, which are not currently regulated by any national or regional regulations.

Our findings indicate that new standards could be enacted—with compliance enforced by rigorous testing and monitoring—to help maintain the environmental integrity of electric buses and coaches, reduce real-world emissions, and support the overall transition to sustainable transportation.

The post Emissions from a fuel-fired heater on a battery electric coach: Tests in China appeared first on International Council on Clean Transportation.

By 2027, the action plan aims to:

• Reduce the cost of social logistics of gross domestic product to approximately 13.5%
• Increase ton-kilometers (tkm) of railway freight by approximately 10%
• Grow rail-waterway intermodal transportation of freight containers at ports by an average of 15% per year
• Transport more than 80% of port cargo by rail, waterways, enclosed belt conveyors, and new energy vehicles

Figure. Action Plan targets for improving transportation and logistics in China

This paper was updated on 13 May 2025 to correct Figure 2.

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The post Sales of zero-emission medium- and heavy-duty vehicles in China, 2014 to 2024 appeared first on International Council on Clean Transportation.

Overview

This overview of China’s zero-emission medium- and heavy-duty vehicle (ZE-MHDV) market covers medium and heavy straight trucks, tractor-trailers above 3.5 tonnes, and city buses and coaches. Sales of ZE-MHDVs in China spiked twice in the last decade: the first in 2015–2016, underpinned by government subsidies, and the second in 2024, with a historical high of more than 230,000 sales. Sales of ZE-MHDVs boomed in Q4, thanks to a strong macroeconomic stimulus package released by the Chinese government in September of that year.

In 2024, trucks and tractor-trailers dominated the ZE-MHDV market, with a market share of ~80%, suggesting that the industry is rapidly embracing zero-emission solutions for freight and trucking. In contrast, the general decline of bus and coach sales over time indicates greater market saturation compared with the freight industry after being the focus of promotional policies in previous years.

Heavy trucks

The heavy truck market in 2024 saw changes in the mix of fuel types from previous years. In 2024, diesel trucks accounted for 57% of sales, down from 70% in 2023, and trucks powered by natural gas made up 29% of total sales. Battery electric trucks reached a 13% sales share and were the third most popular powertrain technology in the market.

Sales of both battery electric and fuel-cell heavy trucks grew steadily in 2024, the exception of a dip in February during the Spring Festival when most business activities are paused. In December, sales of battery electric heavy trucks soared to more than 14,700 and the market share hit a new high of 20.9%, more than double the sales in January 2024. The market for fuel-cell heavy trucks remains nascent, with 581 vehicles sold in December 2024, a market share of 0.8%.

Lithium iron phosphate (LFP) batteries continue to dominate the heavy truck market in China. In terms of capacity, the most popular battery sizes for these vehicles in 2024 were 282 kWh, 350 kWh, and 423 kWh, indicating a balance between battery cost and operational efficiency.

In 2024, the combined market share of the top five original equipment manufacturers (OEMs) of internal combustion engine (ICE) heavy trucks (FAW, Dongfeng Motor, Foton-Daimler, Shaanxi Auto, Sinotruk/CNHTC) was 75%, while the market share of the top five manufacturers of zero-emission trucks (XCMG, SANY, FAW, Hunan Truck, Shaanxi Auto) was 54%. This implies that the zero-emission heavy truck market is catching up to a similar level of market maturity as that of ICE trucks, with the top OEMs dominating a growing share of the market.

Medium trucks

Diesel remained the dominant powertrain in the medium truck market in 2024, accounting for 81% of total sales. Battery electric trucks reached a 14% market share, making it the second most popular powertrain in the segment.

Battery electric trucks showed steady growth in market share, reaching 22% in December 2024, almost three times the market share in January 2024. In 2024, 1,710 fuel-cell medium trucks were sold, representing a 0.25% market share; this powertrain remains in early stages of market development in this segment.

Lithium iron phosphate is the dominant battery chemistry among medium battery electric trucks in China. Most electric medium truck models were equipped with 50 kWh to 100 kWh batteries to balance cost and available range.

There is a small gap in the market share of the top five ICE and zero-emission medium truck OEMs. In 2024, the market share of the top five ICE truck OEMs (Foton, JAC, Sinotruk/CNHTC, JMC Motors and FAW) was 64%, while the market share of zero-emission truck OEMs (Geely, Foton, Yutong, Dongfeng Motor and Shaanxi Auto) was 53%. Similar to the pattern in heavy truck industry, the market shares imply that the zero-emission market is quickly maturing and catching up to the ICE medium truck market.

City buses and coaches

City buses have the highest electrification rate of all vehicle categories in China, with a cumulative battery electric, hybrid electric, and fuel-cell electric market share of almost 100% as of 2024. Electrification among coaches, which are used for intercity transport, has been far more limited; the market share of battery electric coaches was 6% in 2024, and most coaches were still powered by diesel.

In terms of market share, there were no major changes in the adoption of zero-emission technologies in 2024. City bus sales saw a peak in December with over 17,000 buses sold, which were predominantly battery electric (~99%). The soaring sales of electric buses in December was primarily driven by incentives for the replacement of older e-buses and batteries, which were scheduled to end that month. As of December 2024, the market share of battery electric coaches was 12%, the highest level in 2024. Sales of fuel-cell electric coaches were in the single or double digits of sales in most months, but peaked in July and August with 182 and 247 vehicles, respectively.

Technology focus: Battery swapping

The use of battery swapping technology, whereby a depleted electric vehicle battery can be switched out for a fully charged replacement, has gained in popularity in China in recent years, particularly for trucks and tractors. Fleet operators can save on the upfront investment in battery electric vehicles by purchasing vehicles without batteries installed and renting batteries from third-party lessors. Operators can also maximize running time assuming there is battery swapping infrastructure deployed close to their yard.

In 2024, sales of swap-capable vehicles reached a total of 29,569, a 94% growth from 2023. The popularity of swap-capable vehicles has been jointly driven by policy and market developments: several policies were introduced in 2024 to support this emerging technology and pilot projects have been launched to assess use cases in several industries, including mining, steel, and port logistics.

Technology focus: Natural gas

The boom of natural gas-powered trucks is an emerging phenomenon in China, particularly since 2023. The reasons are multifold: first, China lifted all transport restrictions during COVID-19 pandemic by the end of 2022, injecting new momentum to new sales of trucks; second, natural gas imports have surged since 2022, making natural gas-powered trucks cheaper from the perspective of total cost of ownership. Two peaks in sales were observed in September of 2023 and March of 2024, likely due to decreases in the price of natural gas relative to diesel.

However, the popularity of natural gas-powered trucks raises concerns regarding pollutant emissions. While natural gas is viewed by some as a clean alternative energy to conventional fuels like diesel and gasoline, trucks powered by natural gas tend to have high nitrogen oxide and greenhouse gas emissions from combustion and methane leakage. Natural gas trucks have also been found to only provide marginal improvements compared with diesel trucks in terms of greenhouse gas and pollutant emissions.

Terminology and data sources

A zero-emission vehicle is any vehicle whose propulsion system produces zero combustion emissions, such as a dedicated battery electric, fuel-cell electric, or other motor that is not driven by combustion.

A heavy truck is a truck with a gross vehicle weight above 12 tonnes.

A medium truck is a truck or van with a gross vehicle weight between 3.5 and 12 tonnes.

A city bus is a passenger vehicle with a gross vehicle weight above 3.5 tonnes that is used exclusively in urban environments.

A coach is a passenger vehicle with a gross vehicle weight above 3.5 tonnes that is used exclusively in inter-city environments.

All data are provided by Gasgoo Auto, (https://auto.gasgoo.com/), an auto data aggregator in China.

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Beijing, 25 March 2025—Sales of zero-emission trucks and buses in China reached a historic high of more than 230,000 units in 2024, according to a new analysis published today by the International Council on Clean Transportation (ICCT).

The sales boom, primarily recorded in the last quarter of 2024, was driven by a strong macroeconomic stimulus package released by the Chinese government in September. This surge surpassed the previous peak of 200,000 units registered in 2015–2016, which was underpinned by a government incentive program.

“China’s zero-emission truck and bus market experienced significant growth in 2024, particularly in the fourth quarter following the government’s macroeconomic stimulus package released in September,” says Felipe Rodríguez, ICCT Heavy-duty vehicle Program Director and co-author of the analysis. “The increasing market maturity and manufacturer consolidation suggest that zero-emission technologies are trending toward mainstream in China’s commercial vehicle sector. A decade of ambitious policies has driven a transformative shift, positioning manufacturers well for the rapid growth that upcoming regulations, like China VII, will spur.”

Battery electric technology dominated the zero-emission market for both medium and heavy trucks, accounting for 13% and 14%, respectively. In contrast, fuel cell trucks remained as a nascent technology, holding less than 1% market share in heavy trucks.

The heavy truck segment surged to nearly 21% market share in December, more than doubling its January levels. Similarly, the medium truck segment reached 22% in December, nearly tripling its January sales share.

Electric city bus sales already reached the full market penetration in China in 2023, achieving the highest electrification rate of all vehicle categories. As of 2024, battery electric, hybrid electric, and fuel-cell electric city buses accounted for almost 100% of the market. In the coach category, used for intercity transport, the market share of battery electric vehicles was 6% in 2024.

The zero-emission heavy truck market is rapidly consolidating as leading manufacturers successfully scale their operations to significant levels. The top five manufacturers (XCMG, SANY, FAW, Shacman, and Yutong) captured 61% of the market, approaching similar concentration levels as seen in the internal combustion engine segment (75%).

Battery swapping technology, whereby a depleted electric vehicle battery can be switched out for a fully charged replacement, gained popularity in 2024. Sales of swap-capable vehicles grew 94% from 2023, reaching 29,569 units. This progress is driven by both policy support and the growing demand for low-carbon transitions in industries such as mining, steel, and port logistics.

-END-

Publication details
Title: Zero-emission medium- and heavy-duty vehicle market in China, 2024
Authors: Shiyue Mao, Felipe Rodríguez
Please use this link when citing the report: theicct.org/publication/ze-mhdv-market-china-2024-mar25

Media contact
Kelli Pennington, Global Communications Manager, communications@theicct.org

About the International Council on Clean Transportation (ICCT)
The International Council on Clean Transportation (ICCT) is an independent nonprofit research organization founded to provide exceptional, objective, timely research and technical and scientific analysis to environmental regulators. Our work empowers policymakers and others worldwide to improve the environmental performance of road, marine, and air transportation to benefit public health and mitigate climate change. We began collaborating and working as a group of like-minded policymakers and technical experts, formalizing our status as a mission-driven non-governmental organization in 2005.

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Key findings include:

• An increase in NECV registrations, up 43% from the previous year, reaching over 333,000 units. The market penetration of NECVs also rose to 11.3% of the total commercial vehicle market, up from 9.2% in 2022.
• Cities such as Shenzhen, Chengdu, Guangzhou, Chongqing, and Beijing led the way, contributing significantly to the NECV market, with the top 20 cities accounting for 55% of all NECV sales in 2023.
• National pilot programs, including the Green Freight Demonstration, Full Vehicle Electrification in the Public Sector, and the Fuel Cell Vehicle Demonstration Program, were pivotal in driving NECV adoption across the country.
• Urban logistics vehicles, buses, and dump trucks had the highest new energy market penetration rates, while general purpose goods vehicles and pickup trucks had the lowest.

Figure. Top 20 cities for registrations and market penetration of new energy commercial vehicles in 2022 and 2023

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