December EV Battery Market Slumps as Heavy-Duty Trucks’ Reliance on Subsidies Proves Unsustainable

Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), noted that the overall trend for power batteries in December was weak, with both exports and domestic sales falling short of expectations. The anticipated year-end surge in battery demand driven by new energy vehicle (NEV) installations failed to materialize. Nevertheless, battery installation volumes still saw significant growth, primarily supported by energy storage demand—though this demand did not exceed expectations. Notably, battery demand for vehicle installations in December heavily relied on battery-electric heavy-duty trucks, which benefit from substantial subsidies; their sales surge was closely tied to current subsidy and tax-exemption policies. Cui Dongshu forecasts that as these supportive policies phase out, sales of battery-electric heavy-duty trucks will drop sharply month-over-month in early next year.