According to a June announcement from the Ministry of Transport, 11 ministries and agencies—including the Ministry of Transport and the National Energy Administration—have developed the Implementation Plan for Promoting Large-Scale Application of New Energy Heavy-Duty Trucks.

The plan states that by 2030 the penetration rate of new energy heavy-duty trucks will reach 40%, with the total stock exceeding 1.6 million units, accounting for approximately 20% of the overall heavy-duty truck fleet. This initiative aims to accelerate the green and low-carbon transformation of the transportation sector.

In regions such as Beijing-Tianjin-Hebei and the Fenwei Plain, the electrification rate for fixed-route short-haul transportation will surpass 80%. Leveraging the expressway network, charging and battery-swapping infrastructure for electric heavy-duty trucks will be developed to create zero-carbon highway freight corridors.

Under the plan, approximately 3,000 charging and battery-swapping stations for heavy-duty trucks will be supported and guided for construction, while hydrogen refueling stations and green fuel dispensing stations will be scientifically deployed in key scenarios. At the same time, the share of new energy heavy-duty trucks in expressway freight volume will reach 18%.

Source: MOT    Read The Article

PSR Analysis. This plan sets a clear path for China’s heavy truck market. In simple terms, for every five trucks sold, two will be electric or hydrogen powered. Diesel trucks will be pushed out. The biggest growth will come from long-distance highway freight, the hardest area for new energy trucks to crack so far. The plan removes obstacles with hard targets: 30,000 km of zero-carbon corridors and around 3,000 charging and battery-swapping stations.

Truck makers will split into winners and losers fast. Giants like FAW, Dongfeng, and NHTC must go fully electric within four years, or lose 30%–40% of their market. New business models are now officially supported: truck-battery separation, battery leasing, and joint ventures between truck makers, logistics firms, and energy companies.

The real competition is no longer about who builds the best truck, it’s about who controls the full chain of vehicles, cargo, and charging. The supporting services market is where the real money is. Charging stations are the surest bet—demand fees for centralized facilities are waived until 2030.

Repair shops will boom because truck makers must now open their technology, ending the after-sales monopoly. Insurance must cover all new energy trucks, with premiums priced for safety performance, pushing makers to build safer vehicles. Battery recycling and asset management will become major industry on their own.

Exports are the most underestimated opportunity. With 1.6 million trucks running at home, Chinese new energy heavy trucks will become 15%–20% cheaper. Combined with unified standards and a complete “truck-road-energy-cloud” system, China can now export full packages—not just trucks, but the entire solution—to Southeast Asia, the Middle East, Latin America, and beyond. This is the same playbook that made Chinese electric cars dominate globally.

In short, the government is using its full power to force a diesel-to-new-energy switch in four years. Demand is no longer the question—the real challenge is whether battery production, the power grid, and skilled workers can grow fast enough to keep up.   PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

Saying it has solved core manufacturing challenges, CATL said it will start mass production of sodium-Ion batteries this year. This marks sodium-ion technology’s shift from a backup option to mainstream use. The company says sodium-ion batteries show strong potential for extreme weather and energy storage.

Volatile lithium carbonate prices have pushed the industry to hunt for alternatives and secure supply chains. Sodium offers clear cost advantages and better cold-weather performance. As CATL, BYD and other leading players now enter with full supply chains, technical hurdles are being cleared, and commercialization is picking up speed. A new “sodium-lithium parallel” energy landscape is taking shape.

This shift from backup option to mainstream strategy reflects CATL’s heavy investment and bullish market outlook. By 2025, the company had poured nearly $1.47 billion US dollars (10 billion yuan) into sodium-ion R&D. Chairman Zeng Yuqun expects the technology to capture 30–40% of the existing battery market. In CATL’s vision, sodium-ion batteries are no longer just a supplement to lithium, but a key force in reshaping the market.

Source: NBD    Read The Article

PSR Analysis: CATL’s mass production of sodium-ion batteries is reshaping the global new energy industry across three dimensions: market structure, application scenarios, and supply chain systems.‌

In terms of market competition, its mass production cost of ‌0.45 yuan/Wh‌ is ‌30%-40% lower‌ than that of lithium iron phosphate (LFP) batteries, driving A0-class electric vehicle prices down to the $7,300 USD – $11,700 USD ‌(50,000–80,000 yuan‌) range and reducing energy storage system costs by ‌15%-25%‌. The global sodium-ion battery market is projected to exceed ‌1,000 GWh by 2030‌, with CATL and BYD forming a duopoly, squeezing the survival space of small and medium-sized lithium battery firms—over ‌50%‌ of which may be eliminated within the next 3–5 years.

On the application front, sodium-ion batteries’ exceptional performance in extreme cold and long cycle life is unlocking new market opportunities. With over ‌90% capacity retention at -40°C‌, their penetration in cold regions like northern China could rise from less than ‌5%‌ today to over ‌30%‌ by 2028. In energy storage, their ‌10,000+ cycle life‌ and high safety make them ideal for AIDC and 5G base stations, where they will rapidly replace lead-acid batteries. The global sodium-based energy storage market is expected to reach ‌580 GWh by 2030‌, growing at a CAGR of over ‌80%‌. Additionally, sodium-ion batteries will drive the technological upgrade of China’s 3-million-unit low-speed EV market, with penetration expected to exceed ‌50%‌ by 2028.

Despite its bright prospects, the sodium-ion battery industry still faces technical, market, and ecosystem challenges. While its current energy density of ‌175 Wh/kg‌ approaches that of LFP batteries, it remains below that of ternary lithium batteries, and issues like fast-charging capability and cycle life degradation need resolution.

Consumer awareness of sodium battery safety is still low, and the lack of a residual value assessment system hinders adoption. Upstream material supply remains unstable, and standards and certification systems are still evolving. Nevertheless, supported by policy, technological advancement, and market demand, a complementary coexistence between sodium and lithium batteries is taking shape—sodium-ion batteries are expected to capture around ‌10%‌ of the global battery market by 2035, becoming an indispensable part of the new energy industry.   PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

China’s Zhangxue Motorcycles team emerged as a dark horse in the 2026 FIM Super-bike World Championship (WSBK) Portuguese Round last month with its independently developed 820RR-RS race machine clinching back-to-back victories in both World SSP class races, dominating the field by 3.685 seconds.

This triumph marked the first-ever championship title for a Chinese motorcycle brand in this premier competition and also shattered the 29-year monopoly held by European, American, and Japanese manufacturers since the class’s inception in 1997.

Observers noted that this outcome demonstrates the rapid growth and technological breakthroughs of China’s motorcycle industry.

Some industry insiders believe that this breakthrough shattered the long-standing monopoly of European, American, and Japanese brands in this competition, and also signals that China’s motorcycle industry now can compete head-to-head with the world’s premier brands.

Source: CNMO     Read The Article

PSR Analysis. The Zhangxue Motorcycles’ championship victory at the 2026 WSBK Portuguese Round carries a profound impact for China’s motorcycle industry. In the domestic market, this triumph has thoroughly shattered the longstanding “low-end OEM” stereotype, proving the technical credibility of high-end Chinese motorcycles through a commanding 3.685-second victory over century-old marques such as Ducati and Yamaha.

Core technologies reflected in this championship—particularly the independently developed 819cc inline-three engines will drive technical advancement in medium-to-large displacement. Domestic manufacturers now can move from price wars and aim at capturing space in the 300-800cc mid-to-high-end market. Racing success will narrow the technical gap with international brands and attract young talent.

Zhangxue’s victory marks an important inflection point in China’s globalization strategy. The racing achievement provides a key technical endorsement for “Made in China,” significantly lowering barriers in developed markets and enabling Chinese brands to enter high-value markets as “technical competitors” rather than “cost-effective alternatives.”

In Southeast Asia, Latin America, the Middle East and other markets, Chinese manufacturers will be able to establish differentiated advantages through performance credentials, shifting away from low-price strategies. At a deeper level, this signifies global industrial discourse power reconstruction: China is transitioning from “world’s factory” to innovation hub capable of original technology output, resonating with breakthroughs in electric vehicles and humanoid robots to collectively reshape “Made in China’s” global image. China is positioned to become a critical node in global racing-grade supply chains and participate in international standard formulation.

These shifting dynamics may pressure Japanese giants such as Honda and Yamaha, forcing technology transfer or pricing adjustments, while potentially prompting European brands to respond through cooperation or acquisition.

Looking ahead five years, domestic market share for Chinese medium-to-large displacement models is expected to surge from 35% to over 50%, while export structure will shift from predominantly sub-125cc products to having 300-800cc mid-to-high-end products account for over 30%.

Zhangxue’s championship represents a brand victory and signals that “Made in China” has entered a new development stage in global high-end consumer goods markets.  PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

BYD has launched its second-generation Blade Battery and Flash Charging Technology—yet another disruptive technology milestone in new energy vehicle history—officially ushering the industry into the “Flash Charging Era.”

The second-generation Blade Battery achieves breakthroughs across multiple dimensions, delivering ultra-fast charging performance: it can charge from 10% to 70% in just 5 minutes and from 10% to 97% in only 9 minutes at normal temperature, while even in extreme cold conditions of -30°C, it takes merely 12 minutes to charge from 20% to 97%—just 3 minutes longer than at room temperature.

On the strategic front, BYD has launched the “Flash Charging China” initiative, with plans to establish 20,000 flash charging stations by the end of 2026, including 2,000 highway flash charging stations, while partnering with operators to build an additional 18,000 cooperative flash charging stations. In terms of mass production rollout, the technology will debut in the first batch of 10 models including the Yangwang U8 2026 Edition, Datang, and Song Ultra EV, with flash charging technology cascading down to mainstream 150,000 yuan-class vehicles within the year; first-batch vehicle owners will be entitled to one year of complimentary flash charging privileges.

Source: Sina Finance     Read The Article

PSR Analysis. The launch of BYD’s second-generation Blade Battery marks a new phase of “technological ecosystem” competition in China’s power battery industry. For CATL, this impact presents a characteristic of “controllable in the short term, intensifying in the long term.”

In the near term, CATL can maintain its global leadership position through its 70.9% domestic market share in ternary lithium batteries, an international client network covering Tesla and German luxury brands, and technological reserves for mass production of solid-state batteries by 2027.

BYD’s flash charging technology primarily targets the LFP battery segment, while CATL has constructed a defensive system through a tiered technology roadmap spanning LFP, lithium manganese iron phosphate, and solid-state batteries.

However, in the long run, if BYD successfully cascades flash charging technology down to mainstream 150,000-yuan-class vehicles and opens battery supply to third parties, it could divert 10-15% of CATL’s LFP orders. More critically, if BYD’s “vehicle-pile-network” ecosystem closed-loop forms network effects, it may redefine industry competition rules—shifting from single battery performance comparison to full-chain charging experience competition. This will force CATL to transform from a “battery supplier” to an “energy solution provider,” with its high-margin model facing sustained compression.

The impact on BYD itself and China’s electric vehicle market could be even more profound. On the sales front, the promise of “5 minutes charging for 400 kilometers range” reduces range anxiety, and is expected to drive BYD’s pure electric vehicle sales growth of 40-50% in 2026, pushing its pure electric ratio from 40% to 60%, optimizing product structure and improving per-vehicle profitability.

On the market structure front, flash charging technology could accelerate the substitution of fuel vehicles in the above-200,000-yuan market and may trigger technological lag among second-tier battery manufacturers. Although industry CR2 concentration is declining, technological differentiation is intensifying, with the market bifurcating into “flash charging high-end” and “slow charging low-end” poles.

On the export front, opportunities and challenges coexist: on one hand, flash charging technology becomes the second global calling card for Chinese electric vehicles following “safety,” assisting brands like Yangwang and Denza to break into the European high-end market.

On the other hand, overseas flash charging station construction progress, European and American technical trade barriers, and supply chain localization pressures constitute major constraints. Overall, the second-generation Blade Battery propels China’s electric vehicle competition from the conclusion of the “electrification first half” toward the “intelligentization + flash charging second half.”

BYD’s success depends on the triple game of flash charging network construction speed, third-party supply breakthrough progress, and solid-state battery technological counter-attack rhythm during 2026-2027.   PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

Canada has agreed to allow a maximum of 49,000 Chinese-made electric vehicles to enter the Canadian market annually at a most-favored-nation tariff rate of 6.1%.

This policy marks Canada’s termination of the 100% additional tariff measure on Chinese electric vehicles that had been in effect since October 2024, shifting instead to a tariff-rate quota system. Carney stated that this move aims to restore normalized levels prior to trade friction, with the relevant volume accounting for less than 3% of Canada’s new vehicle market sales.

High tariffs had caused electric vehicle prices to soar and limited options in the Canadian market. According to Statistics Canada data, new registrations of zero-emission vehicles declined significantly in the third quarter of 2025. This tariff adjustment is expected to bring more affordably priced electric vehicle models to Canadian consumers. It is projected that within five years, over 50% of Chinese electric vehicles imported to Canada will be priced below CAD 35,000 ($25,300 USD), offering consumers low-cost alternatives. Meanwhile, Canada expects that within three years, the agreement will drive Chinese enterprises to establish joint ventures in Canada, promote the development of the domestic electric vehicle supply chain, and create employment opportunities for Canada’s automotive manufacturing industry.

Source: ACT      Read The Article

PSR Analysis: Canada’s dramatic reduction of electric vehicle tariffs from 106.1% to 6.1% signifies a critical breakthrough for China’s new energy vehicle industry in breaking Western trade barriers and expanding global markets. This policy pivot not only ends the 100% additional tariff imposed since October 2024 but also establishes a clear, predictable pathway for export growth through a tariff-rate quota system. The sharp drop in marginal costs directly translates into end-price advantages: for instance, the BYD Seal’s price could fall from CAD 80,000 to approximately CAD 50,000—a 40% reduction—precisely targeting the affordable market segment below CAD 35,000.

The agreement mandates that within five years, over 50% of Chinese EVs imported to Canada must be priced under CAD 35,000, a hard constraint that will compel Chinese companies to deeply leverage economies of scale and supply chain integration, further consolidating their core “high cost-performance” competitive edge.

Although the first-year quota is only 49,000 units—less than 3% of Canada’s new car market—industry analysis predicts Chinese automakers could capture roughly 10% of Canada’s EV market share, far exceeding the quota and underscoring both market potential and competitiveness.

More strategically, the agreement explicitly promotes Chinese enterprises to establish joint ventures in Canada within three years. This dual “technology + capital” overseas expansion model mirrors BYD and CATL’s capacity deployment in Hungary and Thailand, aiming to circumvent future trade policy risks through localized production.

Moreover, with Canada’s abundant lithium and nickel resources, the joint venture model can create a vertically integrated “resources-manufacturing-market” enhancing global supply chain resilience while deeply binding China’s industrial advantages with Canada’s resource strengths. This creates mutually beneficial strategic synergies and opens a new paradigm for the globalization of China’s new energy vehicle industry.   PSR

Jack Hao, Senior Research Manager – China represents Power Systems Research

Heli Industrial Vehicles (Thailand) Co., Ltd.’s broke ground for its industrial vehicle assembly and lithium battery pack production factory at the Navaan Nong Khuang Industrial Park in Chonburi Province, Thailand Nov. 27, 2025.

To consolidate and expand its leading position in the global market, actively advance its global strategic layout, and build a global production and supply system, Anhui Heli Co., Ltd. has established a strategic partnership with Siam Motors Parts Co., Ltd., a local Thai enterprise, to jointly establish Heli Industrial Vehicles (Thailand) Co., Ltd.

Through this joint venture, the two parties will co-invest in building a new manufacturing base in Thailand, creating an integrated production and sales platform for industrial vehicle complete machines and lithium battery systems.

The project covers a land area of approximately 84,330 square meters, with a total construction area of 50,550 square meters, and a total investment of approximately RMB 425 million (approximately USD 60 million).

The complex includes production facilities, an office building, and supporting infrastructure, equipped with intelligent production lines. Upon full operation, the factory’s annual production capacity will reach 10,000 forklifts and 10,000 lithium battery packs.

Source: ccm-1     Read The Article

PSR Analysis: The product strategy focuses on localization adaptation and technological innovation. It involves developing rust-resistant and corrosion-proof forklift enclosures and battery protection systems tailored to the hot and rainy climate, launching 1-3 ton new energy forklifts to meet the lightweight demands of industries like electronics and textiles, and simultaneously developing low-cost lithium battery solutions to reduce customers’ initial investment.

It also incorporates IoT technology for remote monitoring and fault alerts, introduces autonomous forklifts to cater to e-commerce and port automation scenarios, and obtains new energy certifications from various Southeast Asian countries.

The strategy adopts a dual-driven approach of direct sales and distribution, establishing regional sales centers in Thailand, Vietnam, and Indonesia to provide rapid response services. It leverages new energy subsidy policies in Southeast Asia (such as Thailand’s EV 3.0 and Indonesia’s tax incentives) to help customers reduce procurement costs, launches a “trade-in” program to phase out highly polluting diesel forklifts, and collaborates with local banks to offer low-interest loans and installment plans, innovating battery leasing services charged on a usage basis.

At the strategic level of competition, Heli will leverage differentiated products and a rapid response mechanism to compete with Japanese and Korean brands. Targeting Japanese brands such as Toyota and Mitsubishi in Southeast Asia, Heli will introduce competitive cost-effective new energy forklifts to capture the mid-range market, emphasizing the localization advantages of “Chinese technology + Thailand manufacturing” to reduce tariffs and logistics costs.

Simultaneously, to counter price wars, Heli will collaborate with local Southeast Asian enterprises (such as Siam Motors in Thailand) through technology transfer or joint venture models, adopting a flexible pricing strategy of “basic models + optional modules” to help penetrate the market.

The company also plans to establish a localized supply chain in Thailand (covering core components like batteries and motors) to reduce geopolitical risks and it plans to form long-term partnerships with raw material suppliers in Southeast Asia to ensure supply stability.

Additionally, it will use RMB-THB dual-currency settlement to hedge against exchange rate fluctuations and closely monitor trade policy changes across countries to dynamically adjust strategies.

The plan will be implemented in three phases: in the short term, focus on the Thai and Vietnamese markets to quickly establish reference customers and build a strong reputation; in the medium term, expand into Indonesia and Malaysia to refine the distribution network and service capabilities; and in the long term, strive to become the market leader in Southeast Asia and extend its influence to India and the Middle East, ultimately achieving the dual goals of rapidly capturing the market and accumulating global expansion experience.   PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

On Nov. 4, 2025, Lingong Heavy Machinery’s Brazilian subsidiary, LGMG Machinery Brazil Ltda., promoted its globalization strategy in the South American market with the celebration of its plant in Indaiatuba, São Paulo State, Brazil. This move signifies a deepening of Lingong Heavy Machinery’s South American expansion and marks an important milestone in China’s industrial advancement.

The establishment of the Brazilian subsidiary carries multiple strategic advantages for Lingong Heavy Machinery, providing a robust platform for serving local Brazilian customers through localized operations. It addresses customer needs with customized solutions and develops confidence in Brazilian customers by ensuring product supply stability through a localized spare parts warehouse, improving after-sales service, and enhancing technical support.

Simultaneously, capitalizing on Brazil’s geographical advantages, Lingong Heavy Machinery is well-positioned to expand into neighboring South American markets in the future, leveraging Brazil’s superior location and convenient transportation links to facilitate the extension of products and services to other countries in the region, laying a solid foundation for further South American business expansion.

Source: Finance Sina     Read The Article

PSR Analysis. The establishment of Chinese construction machinery companies in Brazil marks a pivotal strategic milestone in their global expansion. It deepens the economic and trade cooperation between China and Brazil and leverages Brazil’s role as a regional gateway for China to penetrate the broader Latin American market.

From an international political standpoint, this move strengthens bilateral trust, with companies like XCMG and Zoomlion integrating Chinese technological standards into Brazil’s industrial policies through a model that combines investment, job creation, and technology sharing.

This approach positions Chinese engineering machinery as a tangible symbol of cooperation, facilitating future participation in large-scale national projects such as Brazil’s “New Industrial Plan.” Economically, Latin America’s infrastructure gap, estimated at 3.5% of its GDP, drives demand for construction and mining equipment, while Chinese firms enhance supply chain efficiency through localization.

For instance, XCMG’s Brazilian base boasts an annual capacity of over 10,000 units, enabling rapid responses to Brazil’s “Mining 4.0 Plan.” Zoomlion’s localized R&D reduces equipment failure rates in high-altitude conditions by 40%, and Lingong Heavy Machinery’s local spare parts warehouses cut maintenance response times from 72 hours to 24 hours.

This “Made in Brazil, Serving the Region” model has helped Chinese brands gain a 12-percentage-point increase in market share in countries like Peru and Chile within three years.

In terms of market trends, Brazil’s engineering sector is evolving toward high-end and green solutions, with Chinese companies tailoring their product portfolios to meet these demands. Chinese-made excavators now account for 50% of Brazil’s imports, and XCMG’s adoption of 5G autonomous driving technology in its Brazilian factory has enabled zero-emission operations in Vale’s mines.

Zoomlion’s comprehensive service center in Betim has reduced customers’ total lifecycle equipment costs by 18%, while Chinese brands’ share of Brazil’s high-end market surged from 15% in 2018 to 31% in 2025.

For Chinese firms, the Brazilian experience signifies a transformative shift from “going out” to “going deep,” encompassing value chain upgrades (e.g., XCMG’s local bank offering financial services), standard exports (Zoomlion’s initiatives boosting local digitalization by 25%), and cultural integration (Lingong’s “China-Brazil Joint Innovation Center” training over 200 local engineers). As a result, Chinese construction machinery’s brand recognition in Latin America climbed from 37% in 2015 to 68% in 2025.

Looking ahead, the success of this model offers strategic lessons: it mitigates political risks through participation in Brazil’s “Accelerated Growth Plan,” exports Chinese new energy and smart construction standards as regional benchmarks, and builds a comprehensive service network across the Andes and Amazon regions.

In summary, the localization strategies of Chinese engineering machinery companies in Brazil demonstrate how “deep localization” can drive sustainable growth in emerging markets, setting a replicable blueprint for global expansion.  PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

In China this year, green construction machinery is seeing rapid growth, and demand across multiple scenarios is becoming unmistakable. EVE Energy is delivering full-scenario solutions for earthmoving equipment, aerial work platforms and specialized machinery. After six years of shipments in the construction-machinery segment, EVE Energy now ranks second nationwide; individual vehicles have logged more than 16,000 operating hours, and the company’s products are fitted to over 60 OEMs including LiuGong, SANY and Lingong.

According to data from the Construction Machinery Association, domestic sales of new-energy construction equipment are expected to surpass one million units by 2028, and the incremental market for green machinery is opening up rapidly—yet pain points remain: bulky batteries, short cycle life and complex assembly.

EVE Energy’s Huang Xiaobin noted that the company leverages cutting-edge battery innovations to precisely solve these application challenges under tough operating conditions. Its high-performance battery solutions significantly boost equipment efficiency, runtime and safety while cutting full-life-cycle operating costs, accelerating the sector’s march toward efficient, low-carbon and sustainable development.

Source: Finance Sina     Read The Article

PSR Analysis: This year is seen by China’s construction industry as the “Year of Electrification,” and is expected to see penetration leap to 20–25 % with sales of around 120, 000 units and new-energy machines topping 1 million by 2028.

Government policies have shifted from incentives to mandates, and dozens of cities are banning sub-China-IV equipment from urban job sites, forcing a replacement wave. Battery prices have fallen 15–20% in three years while energy density has risen 20%. Coupled with fast-charge, swap and CTB highly integrated packs, the total-cost-of-ownership payback has been improved by two years.

Penetration is following a “small-first, large-later” strategy: forklifts >60%, mini-excavators 20%, wheel loaders 30%, heavy mining trucks <5%, with swap and hydrogen solutions set to unlock the upper-weight segment after 2027. More than 90% of the value chain is now domestic—CATL, EVE Energy, BYD, SVOLT, Xingyi Technology, TELD and others forming a full ecosystem—lifting Chinese brands’ global share from 20% to an expected 40%.

Policies are setting required hard targets for 2025 use of ≥10% of new or renewed construction machines of zero-emission and 80% of public projects in key regions are to be zero-emission equipment. A central 2.5% interest rebate on equipment-upgrade loans, plus local subsidies of RMB 300–500k for every electric excavator, erases roughly 30% of the purchase-price gap.

On the technology side, LFP+CTP/CTB packs deliver >180 Wh/kg, 6,000 cycles and 80% capacity at –30°C; EVE and SVOLT’s 800V platforms recharge to 80% in 15 min. Sany and XCMG’s 5-minute whole-pack swap is already in volume use, raising daily utilization by 8–10%.

XCMG’s 120kW hydrogen wheel loader runs 8h and refuels in 5min, with a 2026 system-cost target of RMB800/kW. In the market, assuming 2,000 operating hours/year and RMB0.7/kWh electricity, a 5-tonne electric loader saves RMB280k over three years versus diesel, paying back in 1.8 years.

“Battery rental + pay-per-hour” schemes from Sany and Zoomlion cut the down-payment by 40%, speeding SME adoption. Meanwhile, Southeast Asia and the Middle East are demanding electric mini excavators at 50% annual growth; Chinese makers, leveraging cost advantages, have captured 70% of those export orders, creating a new outlet for capacity.  PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

Scania Manufacturing (China) Co., Ltd., has officially obtained stand-alone manufacturing qualifications in China. This change represents a major milestone in Scania deepening its localized footprint.

The move was noted recently when the Ministry of Industry and Information Technology released the “Road Motor Vehicle Manufacturers and Products (Batch 398)” catalog in its 2025 No. 17 announcement, explicitly stating that all products already listed by Scania Manufacturing (China) Co., Ltd. are approved to shift their production address from the originally filed site to “No. 1 Zhongrui Avenue, Chengbei Sub-district, Rugao City, Jiangsu Province.”

Scania Manufacturing (China) Co., Ltd. is part of the TRATON GROUP, the commercial-vehicle business unit of Volkswagen Group. Securing this production license means Scania no longer needs to rely on any previous joint-venture or licensed manufacturing arrangements; instead, it can now produce vehicles in China as a wholly independent legal entity, allowing it to integrate the supply chain further, optimize capacity structure, and strengthen its quality-management system.

Scania Manufacturing (China) Co., Ltd. will produce diesel heavy-duty trucks, battery-electric heavy-duty trucks, and core components such as engines, transmissions, and axles. As a world-leading supplier of commercial vehicles and engines, Scania has long regarded China as a key market. Locating the plant in Rugao, Jiangsu, aligns with the city’s strengths as a major manufacturing hub in the Yangtze River Delta and with the supportive local industrial policies. Obtaining stand-alone production status enables Scania to respond faster to Chinese customers, cut costs, and sharpen its market competitiveness, while also underscoring its strategic commitment to sustainable, long-term growth in China.

Source: Commercial Motor World      Read The Article

PSR Analysis:  As China’s commercial-vehicle market moves rapidly up-market, green and smart, Scania’s accelerated localization drive positions it to capture the rollout of new-energy and autonomous technologies and to reinforce its brand in heavy trucks and buses.

The approval makes Scania the first foreign CV manufacturer to obtain full vehicle-building credentials in China as a stand-alone legal entity. The new plant immediately enjoys the same incentives domestic players receive—preferential land pricing, duty-free equipment imports, etc.—while the re-engineered supply chain gives Chinese suppliers direct entry into Scania’s system. This cuts procurement costs and delivers faster after-sales service, handing the company a lasting advantage over rival imported brands.

Scania’s establishment of a wholly owned factory in China holds promising prospects, but it also faces multiple challenges: The Chinese heavy-duty truck market has entered an era of intense “hyper-competition.” Scania now must compete with imported brands such as Mercedes-Benz and Volvo, and it also must directly confront domestic giants like FAW, Dongfeng, Sany, and XCMG, which offer rapid technological advancement, high cost-effectiveness, and have caught up in intelligent connectivity and service network coverage.

Although localization helps reduce costs, if Scania cannot keep its prices within 20% above those of high-end domestic trucks (around RMB 400,000), its “authentic European” quality advantage may fail to appeal to price-sensitive customers.

At the same time, the company must shift from merely providing products to offering “customized services,” quickly gaining deep insights into complex niche markets such as express logistics, cold chain, green channel, and general freight, thereby enhancing localization agility.

In terms of electrification and intelligence, Scania’s localized electric product development—especially battery-swapping trucks—lags behind competitors who have already formed deep partnerships with battery giants like CATL; its adoption of autonomous driving and connected vehicle technologies also needs acceleration to meet the growing demands of the Chinese market.

Achieving an 85% localization rate is a major test for supply chain management, particularly since the supplier for core battery packs remains unclear, potentially hindering its electrification transition.

Furthermore, Scania’s long-standing image as a premium imported brand presents a branding challenge: after localization, maintaining its reputation for “premium quality, reliability, and efficiency” while convincing the market to accept “Made-in-China” Scania trucks and trusting that their quality matches that of European production will require sustained communication and market education.    PSR

Dongfeng Motor Group reportedly plans to sell its 50% stake in Dongfeng Honda Engine Co., Ltd. Joint venture with Honda Motor Co., according to an Aug. 18post on the official website of Guangdong United Property and Equity Exchange. The project is in the pre-listing phase, with no reserve price set, and the deadline is Sept. 12.

According to the audited figures in the listing documents, Dongfeng Honda Engine was valued at RMB 5.4 billion (approximately USD 752 million) in 2024. The company posted a net loss of RMB 227.8 million for the same period, carries liabilities of RMB 3.3 billion.

According to the official website of Dongfeng Honda Engine Co., Ltd., the company was established in 1998. Its shareholders are Dongfeng Motor Corporation, Honda Motor Co., Ltd., and Honda Motor (China) Investment Co., Ltd., holding 50%, 40%, and 10% of the shares respectively.

Headquartered in Guangzhou, the company is mainly responsible for the development, production, and sale of automobile engines and their components for passenger cars and provides corresponding after-sales services. Its products are primarily supplied by the passenger-vehicle model manufactured by GAC Honda. At present, the company has an annual production capacity of 480,000 complete engines and over 650,000 sets of parts and components.

Dongfeng Motor Group’s plan to divest its engine business underscores how fierce competition has become amid China’s rapid shift toward electric vehicles. Japanese automakers—including Honda, Toyota, and Nissan—have lagged in electrification and are now confronting strong headwinds from domestic brands such as BYD.

Competition among China’s home-grown automakers is also intensifying. Data from the China Automotive Technology & Research Center show that Dongfeng Motor, which operates joint ventures with both Honda and Nissan, saw its annual deliveries fall from a peak of 3.8 million units in 2016 to 1.5 million units last year.

Source: GASGOO     Read The Article

PSR Analysis: Dongfeng’s sale of its stake in Dongfeng Honda Engine is a textbook case of “off-loading fossil-fuel assets and shifting capital into new-energy vehicles.” By divesting the engine plant, Dongfeng is restructuring its portfolio: it sheds a loss-making, high-debt fossil-fuel asset, pockets a lump-sum cash inflow, lowers its leverage, and channels the freed-up resources into its EV and self-owned passenger-car businesses. 

Since 2024, China’s new-energy passenger-vehicle penetration rate has exceeded 50% for six consecutive months, while retail sales of traditional-fuel vehicles have been falling by roughly 15% per year. DHEC’s sole vehicle customer—GAC Honda—sold only 171,000 units from January to July 2025, down 29% year-on-year, and its parent, Honda Motor China, delivered 360,000 vehicles in the same period, a 23% decline. This shrinking demand has directly eroded DHEC’s engine orders and compressed its capacity utilization.

The surge of domestic new-energy vehicles has pushed joint-venture fuel-car sales and profits into a simultaneous decline; some players are now bleeding cash at an accelerating pace. With China VI emission rules tightening, any further investment in conventional powertrain capacity offers dismal returns. Consequently, several major joint ventures—including Nissan, Honda, General Motors, and SAIC Volkswagen—have announced plans to cut output or shrink capacity, and the scale of these reductions is still expanding.   PSR

Jack Hao is Senior Research Manager – China for Power Systems Research