Electrifying on-road freight: Market review and policy suggestions for Guangdong province
Research Brief
Electrifying on-road freight: A case study of drayage trucks in the city of Tianjin, China
Our latest case study in collaboration with China Automotive Technology & Research Center (CATARC) explores the use case for new energy heavy-duty trucks for drayage operations at Binhai New District in Tianjin, China. This study presents a total cost of ownership (TCO) analysis comparing diesel trucks, battery electric trucks (BETs), and swap-capable battery electric trucks (SCBETs) with both purchased and leased batteries. We also undertake a cost and revenue analysis of the charging and battery swapping infrastructure for these vehicles.
We estimate:
- The TCO of BETs is 9% lower than that of traditional diesel trucks over five years.
- The TCO of SCBETs, whether the batteries are leased or purchased, is 10% lower than that of diesel counterparts.
- The payback period for the construction of a charging station for BETs in the area would be 4.8 years, while the payback period for battery-swapping infrastructure would be 5.8 years.
Policymakers could consider various measures to aid in the transition to electric drayage trucks, such as creating low-emission zones, providing phased financial incentives, and expanding charging infrastructure to accommodate the needs of heavy-duty transport sectors.
