China is advancing its green transportation agenda by incorporating methanol fuel alongside battery electric vehicles, particularly targeting commercial and long-haul sectors where traditional electrification faces challenges. Industry experts highlight methanol’s potential to complement the country’s ongoing efforts to reduce transport emissions through a diversified energy approach.

At a recent industry forum, Chan Ching-Chuen, an academician of the Chinese Academy of Engineering, emphasized that future mobility should be viewed as an integrated energy and transportation system rather than a simple shift in automotive technologies. While China’s rapid adoption of electric vehicles has significantly contributed to decarbonization in passenger transport, commercial vehicles—especially heavy-duty logistics—continue to encounter obstacles due to high energy demands and complex operating environments.

Data shared by Zhang Yongwei, president of the China EV100 think tank, shows that new energy vehicles accounted for over half of China’s overall vehicle market during the first five months of 2026, with commercial vehicle penetration achieving 28.2 percent. However, Zhang noted the difficulty in quickly electrifying this segment and advocated for a diversified mix of powertrains including battery electric, hybrid, fuel cell, and methanol technologies.

Fang Haifeng, chief expert at the China Automotive Technology and Research Center, pointed out that commercial vehicles, despite being a smaller portion of the total fleet, contribute disproportionately to transport emissions. China’s evolving policy landscape is increasingly supportive of multiple new energy pathways, particularly for heavy-duty and industrial applications. Fang identified methanol as a promising alternative fuel, highlighting its benefits in energy storage, logistics efficiency, and performance under low-temperature conditions. Additionally, methanol can leverage existing fuel distribution infrastructure with relatively low incremental costs.

Methanol production methods are diverse, encompassing coal, biomass, captured carbon dioxide, and green hydrogen, which allows it to function as a flexible energy carrier within China’s efforts to build a low-carbon energy system. According to Fang, China’s methanol vehicle sector is experiencing steady growth, with more than 60,000 methanol-powered vehicles on the road by the end of 2025—about two-thirds of which are commercial vehicles. The sector is poised to exceed 80,000 units in 2026, backed by supportive policies and increasing market demand.

Looking ahead, Fang anticipates the development of a comprehensive methanol vehicle ecosystem aiming for large-scale commercialization by 2030. He advocates for the establishment of national-level policies, expanded refueling infrastructure, and coordinated production and distribution systems. Pilot programs are encouraged across public transport, taxis, ride-hailing services, municipal fleets, and heavy logistics.

Farizon New Energy Commercial Vehicle, a subsidiary of Geely Holding Group, is a prominent player advancing methanol-electric technology. Farizon CEO Fan Xianjun reported that methanol-electric systems can reduce particulate emissions by up to 98 percent relative to diesel engines, while cutting operating costs by 32 to 52 percent depending on use cases. Some methanol-powered heavy-duty vehicles have demonstrated real-world ranges exceeding 1,500 kilometers on a single refueling, partially overcoming range limitations associated with battery-only trucks. For instance, a light commercial vehicle recently completed nearly 1,700 kilometers on one methanol-electric refueling cycle during testing, underscoring growing operational maturity.

Geely’s methanol vehicles have been deployed at scale, with over 60,000 units operating globally and cumulative mileage surpassing 25 billion kilometers. In addition to the Chinese mainland, emerging markets such as Hong Kong are showing increased interest. Farizon’s U12M methanol-electric bus, tailored for Hong Kong, recently received emissions exemption approval and is expected to enter commercial service soon.

Chan also noted methanol-powered commercial vehicles could be well-suited for Southeast Asia, where large populations and intense logistics demand create conditions favorable to this alternative energy technology. As China pursues more diversified energy solutions within transportation, methanol fuel is positioned to become a significant element of the country’s broader decarbonization strategy in the coming years.