1. [para. 1] Europe can learn from China's approach to electrifying heavy trucks, according to Volvo Group Chief Technology Officer Jens Holtinger. He stated that the biggest obstacle for Europe is no longer vehicle technology but the supporting energy infrastructure, including grid capacity, charging networks, and renewable energy generation.
2. [para. 2] [para. 3] Battery-electric trucks are approaching cost parity with diesel models, but widespread adoption depends on government expansion of electricity grids and charging networks. Holtinger noted that in China, close to 28% to 29% of heavy-duty commercial vehicles are now battery electric, calling it a holistic approach from which Europe can learn.
3. [para. 4] [para. 5] While European manufacturers have made progress developing electric trucks, infrastructure has lagged. Weak grid capacity and insufficient charging networks remain the biggest constraints. Holtinger emphasized that vehicles are approaching competitive total cost of ownership, but infrastructure must support them.
4. [para. 6] [para. 7] In China, the annual operating cost of a diesel heavy truck is 797,000 yuan ($117,400), compared with 620,000 yuan for an electric model, according to a 2024 estimate by CIC. Beijing set a target for new-energy heavy trucks to account for 40% of new sales by 2030, aiming for more than 1.6 million such trucks on roads by the end of the decade—about 20% of China's heavy-truck fleet.
5. [para. 8] [para. 9] Volvo continues to pursue multiple technology pathways, including battery-electric, hydrogen fuel-cell, and hydrogen-powered combustion engines. Holtinger said the energy infrastructure will drive which technology is used, and hydrogen could play a larger role if renewable electricity needs to be stored over longer periods.
6. [para. 10] [para. 11] In China, Volvo Group produces buses, engines, and construction equipment in its Shanghai factory and owns 45% of Dongfeng Commercial Vehicles via a joint venture. It held a 12.3% market share in China's heavy-duty truck market in 2025 (down 1 percentage point from 2024), with net sales of 11 billion Swedish krona ($1.1 billion), a 28.3% year-on-year decrease.
7. [para. 12] [para. 13] Last June, Volvo Construction Equipment sold its 70% stake in Shandong Lingong while acquiring Swecon's operations in Sweden, Germany, and the Baltics, marking a step back from China due to the prolonged property crisis. Holtinger noted a visible slowdown in excavators, concrete pumps, and everything connected to property development.
8. [para. 14] [para. 15] Yet China remains strategically important. Holtinger described the country as a global technology leader whose manufacturing ecosystem has become increasingly difficult for international companies to ignore. He said companies need to be in China to be part of the technology evolution, crediting China's ability to rapidly scale production and drive down costs.
9. [para. 16] [para. 17] This represents a notable shift from earlier decades when multinationals primarily transferred technology into China. Holtinger observed that the journey is now approaching the opposite direction, with certain technologies—such as batteries and their surrounding ecosystem—likely flowing from China to Europe.
10. [para. 18] [para. 19] Chinese commercial-vehicle makers are expanding aggressively overseas, intensifying competition. Holtinger welcomed competition provided there is a level playing field, adding that Volvo must develop faster. He noted that Volvo has been studying the speed of product development in China's automotive ecosystem, an area where European manufacturers can improve while building on long-standing customer relationships and engineering strengths.
AI generated, for reference only
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