SANY Heavy Truck and its strategic partner FMT on Sept. 9 in Istanbul, announced the release of the SE636 kWh electric heavy truck, the launch of the Turkey dealer and sales/service network, and the debut of the first electric heavy truck produced at the KD (knock down) factory. The first locally assembled SANY SE636 electric heavy truck signaled that the KD factory has achieved mass-production capability.
The announcement noted that core components, complete-vehicle technical standards, and the EU certification system are provided by China, while final assembly and local adaptation are completed locally, which is capability export rather than simple product trade.
The KD factory is planned to have an annual capacity of 2,000 units and an expected annual output of about US$400 million, creating about 200 local jobs and training local automotive engineers.
For automakers seeking Europe, Turkey’s strategic value goes beyond its own market: at the Europe-Asia crossroads, it is a gateway to Europe and a springboard to Central Asia and the Middle East.
SANY’s focus in this launch improves overseas localization through the KD factory, dealer network, and service system. The simultaneous implementation of manufacturing, channels, and services forms a solid foundation for rooting in Turkey and consolidates a hub for moving into Europe and neighboring markets.
SANY will also make its first appearance at IAA TRANSPORTATION in Hanover, Germany, moving from localized production at the Europe-Asia junction to Europe’s core commercial vehicle stage. With overseas electric heavy truck orders for 2026 up more than 50% year on year, along with a previous single export of over 800 electric trucks, Chinese new-energy heavy trucks are leaping from product export to capacity export and capability export.
Source: cvworld Read The Article
PSR Analysis. The Chinese domestic heavy-duty truck market has entered a stage of competition, where weak demand triggers price wars, produces excess capacity, and generates profitability pressure, making it unsustainable to rely solely on domestic growth. This situation has forced the industry to elevate overseas markets from a supplementary source to a core strategic pillar—a vital channel for absorbing capacity, amortizing R&D costs, and enhancing brand premium.
Chinese heavy-duty truck exports are moving away from the old pattern centered on low-end markets in Asia, Africa, and Latin America, and accelerating structural upgrading toward high-end markets.
Sany Heavy Truck has set up a KD plant in Turkey, a strategic hub between Europe and Asia, entering Europe’s high-end market through a model of “Chinese core technology output plus local assembly.” This approach lowers trade barriers, shortens delivery cycles, and leverages Turkey’s geographic position to provide access into Europe, Central Asia, and the Middle East. Although such localized deployment requires heavy upfront investment, once it proves viable, it will build a market moat far deeper than pure vehicle exports.
The rapid growth of electric heavy-duty truck penetration in China has matured the entire supply chain, giving domestic manufacturers a differentiated window to enter Europe. With supply-chain and cost advantages in the three electrics—battery, motor, and electronic control—Chinese companies can circumvent Europe’s century-old technological barriers in diesel engines.
At present, Sany’s electric truck specifications already benchmark against mainstream European demand, having obtained EU certification and entered real-world operation validation locally, while also aligning with the policy dividends of Europe’s carbon- neutrality transition.
Opportunities and risks coexist in the push into Europe. The opportunities lie in Europe’s yet-to-be-solidified electric truck competitive landscape, the multi-regional market coverage enabled by localization, and faster market entry through local partnerships.
The risks include the entrenched advantages of European incumbents in brand, service, and financial systems, long payback periods for localized manufacturing, uncertainties surrounding trade protection and geopolitics, and unresolved capital-intensive challenges such as after-sales service and residual value management. PSR
Jack Hao is Senior Research Manager – China for Power Systems Research
