I. Driven by Policy and Environmental Protection Demand
Europe, North America, Southeast Asia and other regions have introduced strict carbon emission policies, requiring industrial vehicles (such as forklifts) to transform into electric vehicles. For example, the European Union plans to reduce greenhouse gas emissions by 55% by 2030 compared with 2005, pushing ports, logistics and manufacturing industries to accelerate the elimination of diesel forklifts.
China’s electric forklift trucks have become the first choice for replacing fuel forklift trucks overseas due to their high cost-effectiveness and technological maturity.
Overseas Government Subsidies and Regulations
Many countries provide purchase subsidies or tax incentives for new energy equipment (e.g. US Inflation Reduction Act, German renewable energy subsidies), stimulating enterprises to purchase electric forklifts.
Some countries restrict the use of diesel forklifts (e.g. the Netherlands, Sweden), which directly boosts the import demand for electric forklifts.
Supply Chain Advantages in China
China has the world’s most complete electric forklift industry chain (batteries, motors, electronic control, parts and components), large-scale production significantly reduces costs. For example, the cost of domestic lithium battery is only 1/2 to 1/3 of that of European and American enterprises.
Leading enterprises (such as Hangzhou Forklift, BYD, and Noni Machinery) have mass production capacity, and they can respond quickly to overseas orders.
Strong technology adaptability
China’s electric forklift technology covers high, medium and low-end markets, which can meet the high-end demand in Europe and the US (e.g. intelligent AGV forklift), and is also suitable for the medium and low-end market demand in Southeast Asia and the Middle East (e.g. basic electric counterbalance forklift).
The ability of customisation for special overseas scenarios (e.g. low-temperature environment, large tonnage handling) is constantly improving.
Demand growth in overseas markets
Under the background of global supply chain reconstruction, Europe, America, Southeast Asia and other places of warehousing and logistics, manufacturing (e.g., automotive, electronics) expansion, driving the demand for forklifts. For example, Amazon, Walmart and other global logistics giants to increase investment in automated warehousing, bulk purchase of electric forklifts.
In developing countries (e.g. India, Brazil) industrialisation, enterprises tend to directly procure electric forklifts, skipping the fuel forklift stage.
Rising Rental Market
Overseas forklift leasing mode is popular (e.g. United Rental in the U.S., Loxam in Europe), and Chinese enterprises provide cost-effective equipment through cooperation with leasing companies to seize the market share.
IV. Guidance and Support from Chinese Policies
Export Tax Refunds and Subsidies
The Chinese government provides tax rebates (e.g. VAT refund) and R&D subsidies (e.g. ‘Intelligent Manufacturing Special Programme’) for the export of new energy equipments to reduce the cost of export.
Driven by the ‘Belt and Road’ initiative, infrastructure projects (e.g. ports, industrial parks) in countries along the route have purchased a large number of Chinese electric forklifts.
Cross-border e-commerce and channel expansion
Technology upgrading and brand competitiveness
China’s electric forklift technology is fast iterating, and products such as intelligent AGVs and unmanned forklifts have reached the international level to meet the high-end market demand in Europe and the United States. For example, Hikvision’s intelligent warehouse robots have entered several markets around the world.
Breakthrough in lithium battery technology
VI. Substitution Effect and Market Shift
Overseas traditional diesel forklift manufacturers (e.g. Linde, Toyota Forklift) gradually lose market share due to slower transformation or higher cost of electrification, and Chinese brands take advantage of the opportunity to fill the gap.
Trend of industry chain transfer
Some international enterprises will outsource the production link to China, and then export through OEM or co-operation, which will further promote China’s electric forklift trucks to go overseas.
