Report
China electric off-road machinery casebook
China’s off-road mobile machinery sector is a critical but often overlooked mobile emission source. Often operating in densely populated areas and construction hotspots, off-road construction machinery poses serious environmental and health risks to frontline workers and surrounding communities, while also contributing to climate change through black carbon and carbon dioxide emissions. As cities strive to meet air quality goals and carbon reduction targets, the transition to zero-emission construction machinery has emerged as a key strategy. In recent years, leading Chinese manufacturers have developed a broad portfolio of zero-emission construction machinery across equipment categories, sizes, and power segments.
To better understand how zero-emission construction machinery performs in practice and showcase early successes that could inspire broader adoption, this casebook draws on extensive on-the-ground research across six Chinese cities. Our team systematically studied the use of zero-emission machinery at a variety of industrial and construction sites. We engaged with equipment operators, site managers, rental firms, and manufacturers to gather first-hand insights into the deployment of electric off-road machinery in real working conditions. By observing daily operations, documenting charging practices, collecting technical specifications, and analyzing cost data, we built a first-of-its-kind, evidence-based profile of the real-world performance of zero-emission construction machinery. The casebook highlights representative cases of excavators, loaders, and rotary drilling rigs, and offers detailed evaluations of their operational viability, energy savings, and financial implications.
Common strengths
- Clear environmental benefits: Electric machinery eliminates tailpipe emissions, making it especially suitable for enclosed environments (e.g., tunnels and distilleries), urban construction sites, and areas with strict environmental controls. This positions electric equipment as a compliance-ready solution under tightening air quality and noise regulations.
- Improved worksite conditions: Many cases reported significantly lower noise, vibration, and emissions, leading to safer, healthier, and more comfortable working environments, particularly in enclosed, high-exposure, or urban settings.
- Lower operating costs and rapid payback in high-utilization scenarios: In projects with high daily usage, electric machines consistently delivered 50%–86% energy cost savings. In several cases, payback periods were achieved in under 2 years, offering a compelling economic case where utilization is stable and intensive.
- Demonstrated operational functionality comparable to diesel counterparts: Across case types, electric equipment proved capable of meeting core productivity needs (especially repetitive task- and shift-based work) when charging or battery-swapping solutions were in place.
Key challenges
- High upfront and leasing costs: The purchase or leasing costs of electric machinery in our cases were 1.3 to 3 times those of their diesel counterparts. In several cases, rental premiums tended to be higher than purchase premiums due to provider risk margins, logistics and service costs, and limited competition in the emerging electric machinery rental market. Without financial policies or strategic industry partnerships, this price gap may deter adoption, especially among smaller operators.
- Charging infrastructure gaps limit runtime: Many machines achieved only 4–6 hours of operation per charge, which fell short of diesel-equivalent runtimes. The lack of on-site fast-charging options or scalable battery-swapping systems often disrupted workflows or required labor-intensive solutions. Grid constraints and long approval timelines for increased grid capacity hindered the deployment of fast chargers in several construction cases. Inadequate planning for charger locations or swap logistics reduced operational efficiency. This challenge may be particularly pronounced for smaller construction sites where individual grid capacity often cannot support full electrification. Large-scale construction sites and dense construction zones may present better opportunities for shared charging infrastructure and economically viable grid upgrades.
- Limited model availability and market maturity: Access to electric heavy-duty machinery remains constrained by a small number of models and suppliers, and this equipment often requires technological customization. Lack of information disclosure and access to available models prior to purchase further hampers adoption. Some machines are only available for purchase, not rental, limiting flexibility for pilot users and small fleets.
- Economic viability depends on utilization: The business case for electric machinery is highly sensitive to usage intensity. For low-frequency or small-scale operators, extended payback periods may reduce willingness to invest without external incentives or shared-use mechanisms.
- Concerns over long-term durability and value: Some users remain cautious about battery life and resale value, especially beyond warranty periods.