Following China’s April 10 blacklisting of 12 U.S. entities, including critical suppliers of heavy-duty axles and control systems, leading Chinese specialized vehicle manufacturers are accelerating global supply chain restructuring. Sany Heavy Industry and XCMG Group have launched a "Southeast Asia Capacity Replacement Plan," assembling dump trucks and concrete pumpers via joint ventures in Thailand and Vietnam to bypass punitive U.S. tariffs of up to 125%.

Tech Localization and Distributed Manufacturing

Shaanxi Automobile Group announced its domestically developed "Xuan Yuan" electric drive axle—tested for 300,000 km durability—to replace sanctioned U.S. components, while Zoomlion adopted Huawei’s HarmonyOS for control systems and established a data compliance center in Myanmar. Manufacturers are deploying regional hubs:

- ASEAN bases: Fuel-powered vehicle assembly under RCEP tariff advantages.

- Middle East hubs: UAE facilities adapt EVs for desert conditions.

- Mexico gateway: Chery’s fire truck chassis production targets North America by 2025.

New Energy Breakthroughs

BYD delivered 200 electric mining trucks to Chile via Indonesia-based assembly, equipped with lithium iron phosphate batteries enabling 300 km range per charge. China’s 2024 new energy specialized vehicle exports surged 148%, with hydrogen refrigerated trucks and electric mixers now comprising 35% of shipments. UPS’s Singapore unit recently acquired 300 Chinese hydrogen fuel cell trucks, circumventing U.S. tariffs.

Challenges Ahead

Analysts note China’s specialized vehicle sector is transitioning from cost leadership to “technology-compliance dual engines,” with global market share projected to rise from 19% to 24% in 2025. However, tech self-sufficiency and geopolitical risks remain critical hurdles.

Source : China Ministry of Commerce, corporate disclosures

Editor : Alix

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Tags: U S tariffs specialized vehicle sector