CHINA REPORT
The Sany Group has taken a major step in the electrification of the heavy truck market segment with the launch on Aug. 30, 2023, of Sany Magic Tower Energy Co., Ltd. The business plan includes battery sales, battery parts sales, new energy vehicle waste power battery recycling and cascade utilization, artificial intelligence basic software development, data processing and storage support services.
The blue ocean market of new energy heavy-duty trucks is about to experience explosive growth. “Blue ocean” refers to a business approach that focuses on creating a new, uncontested market space rather than competing in an existing market, which is often saturated and competitive. In a blue ocean, the competition is irrelevant because the brand or company is establishing a market where none existed before or is radically differentiating itself in an existing market.
The sales of new energy heavy-duty trucks in 2022 were 25,152 units, with a compound growth rate of 104.9% from 2020 to 2022. With the support of the dual carbon policy, the industry has experienced explosive growth. The estimated penetration rate of new energy vehicles in 2030 is 40%, and the market space for new energy heavy-duty trucks is huge.
The so-called separation of vehicles and electricity accelerates the electrification of heavy trucks, significantly increasing the market share of electric vehicles. In the separation mode of vehicles and electricity, users only need to purchase unpowered vehicle bodies, reducing the initial investment by about 50%, and enabling the rapid promotion of electric heavy trucks.
In 2022, a total of 12,431 heavy-duty trucks were sold, a year-on-year increase of 273.6%, leading the new energy heavy-duty truck market.
However, there are several pain points in battery separation: poor universality, long recycling period, and high risk of battery ownership
Due to differences in vehicle brand, battery brand, vehicle model, battery exchange technology standards, and battery capacity, battery universality is poor. If a batch of batteries can only be applied to a single user in a single scenario, it indirectly increases user usage costs and asset holding risks.
Source: Sany Read The Article
PSR Analysis. Electric heavy-duty trucks account for 90% of the market share of the entire new energy heavy-duty truck market. In electric heavy-duty trucks, the electric tram and charging models each account for 50% of the market share.
The potential for the electric vehicle to dominate the mainstream market comes from the increasingly mature business and operational models of electric heavy-duty trucks. First, the business model of “separating cars from electricity” can greatly reduce the cost of purchasing a complete vehicle, making it comparable to the purchase price of a fuel heavy truck. Users can also avoid the problem of low residual value of second-hand cars caused by battery decay.
Secondly, the “battery swapping” mode brings great convenience to users in operating battery swapping heavy trucks, greatly shortening the recharge time. Compared with charging models powered by fast charging, replacing heavy trucks can significantly reduce the load and impact on the power grid. The battery belongs to the battery bank, which can conduct centralized monitoring, maintenance, and management of the battery, extend its service life, and improve its safety.
Currently, users of electric trucks are not able to achieve both load efficiency and transportation distance. The construction of power exchange stations and the interconnection and exchange of batteries are still the biggest challenges in the operation electric heavy-duty trucks.
Pure electric heavy-duty trucks have shown enormous development potential and are an important way to achieve zero emissions. At the same time, Ningde Times is constantly making efforts in the field of battery swapping; mastering low-cost battery assets is its core advantage.
Battery swapping brands such as “EVOGO” and MTB technology have been launched and linked with car companies such as Beiqi Foton, FAW Jiefang, Sany Heavy Industry, SAIC Group, etc. MTB (Module to Bracket) for heavy-duty electric trucks technology integrates the battery module directly into the vehicle’s chassis, which can result in as much as a 40% increase in battery system utilization and a 10% reduction in weight. PSR
Jack Hao is Senior Research Manager – China for Power Systems Research
