Volkswagen AG’s truck division Scania AB is accelerating its production plans for electric trucks at a new facility in China amid rising diesel prices and a swift shift towards electrification in the country’s transport sector. The Swedish manufacturer intends to begin assembling battery-electric trucks at its Rugao plant once it secures the necessary regulatory approvals, according to CEO Christian Levin.

Speaking from Södertälje, Levin emphasized that the company’s timeline has been advanced due to market dynamics in China, the world’s largest truck market. He projected that electric trucks will comprise approximately 50% of new truck sales in China by early 2027.

While obtaining licenses in China for new manufacturing activities is typically a complex process, Levin noted that regulatory progress has been swifter than anticipated, enabling Scania to move forward with its electrification strategy more rapidly.

The company’s decision reflects broader trends in the Chinese commercial vehicle market, where soaring fuel costs are accelerating the transition from diesel to electric drivetrains. Scania’s expansion in China aims to capitalize on growing demand for cleaner, battery-powered trucks in the country’s logistics and transportation industries.

Levin’s comments highlight the interplay of regulatory, economic, and environmental factors driving innovation in heavy-duty vehicle manufacturing across global markets, with China emerging as a key battleground for electric truck development.