Record fuel prices driven by the dumb oil war in Iran are fueling a faster-than-expected switch to electric trucks in the world’s biggest freight markets – and Swedish heavy truck brand Scania is scrambling to meet demand with a new factory in China.
The Swedish truck maker is set to begin manufacturing battery-powered trucks at its new Rugao assembly plant in China as soon as it receives a license, according to Scania Chief Executive Officer Christian Levin.
In an interview given in Södertälje, Levin said he expects electric trucks to account for half of China’s market by the start of 2027. “We have had to speed up those plans,” Levin explained. “It’s always quite a complicated process in China to get licenses to do different things, but I have to say: it has moved much faster than we could have imagined.”
Chinese electric semi truck sales jumped almost 80% in the first half of 2026 compared to 2025, and are on pace to account for over 30% of all heavy trucks sold this year – and that pace is accelerating.
Scania built the Rugao plant last year, making it the Traton Group’s first wholly-owned factory in China. The facility will serve China and other Asian markets, and can build both conventional diesel and battery-powered trucks on the same assembly lines.
“It is happening quickly and that’s incredibly fascinating,” says Levin. “It means they have found a way to expand charging infrastructure and the power grid, which is the biggest challenge we have in many countries around the world, including Europe.”
I would respond to that by saying that China has a political system that makes the betterment of society as-a-whole a higher priority than corporate profits and creating shareholder value, but nobody asked me and this isn’t one of those blogs. Instead, I’ll open the floor to the smartest commenters in the biz: Electrek readers, let us know what you think!
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