March 2026 Newsletter

Hello everyone,

I hope this message finds you well. I trust operations with your heavy-duty vehicles have not been overly affected by recent rises in fuel prices.

Affected by ongoing tensions in the Middle East, diesel prices in China have risen by 10.5% since the start of 2026, reaching approximately US$1.19 per litre. This has not only increased the cost of road transportation but also strengthened the Chinese government’s resolve to accelerate the electrification of commercial vehicles. Authorities plan to continue promoting the replacement of older diesel trucks, while further expanding electrification in urban logistics and public transport.

At the same time, China’s updated commercial vehicle fuel consumption standards officially took effect in January 2026. Under the new regulation, the fuel consumption limits for heavy-duty trucks have been tightened by 12% to 16%, significantly raising efficiency requirements for internal combustion powertrains.

Across Asia, countries are also accelerating their shift toward electrification:

• Japan requires that 30% of newly registered trucks and buses be electric (including battery-electric and fuel-cell vehicles) starting in 2026, supported by purchase subsidies and tax reductions. Pilot programmes indicate electric trucks reduce operating costs by about 15%. Japan will also implement the Euro 6d-TEMP emission standard for diesel trucks in 2026, imposing strict controls on NOₓ and particulate matter (PM).
• South Korea has revised its eco-friendly vehicle subsidy scheme, offering subsidies for heavy-duty electric trucks covering up to 20% of the vehicle price (capped at 8 million KRW), with additional incentives for fuel-cell trucks. Starting in 2026, CO₂ emission limits for newly registered commercial vehicles will be 15% stricter than 2022 levels.
• India has fully implemented BS VI Phase 2, equivalent to Euro 6, reducing NOₓ limits for diesel trucks by 40% compared to BS VI Phase 1. From 2026 onward, diesel vehicles older than 15 years will be phased out.

In China, the two most critical standards governing commercial vehicles are currently under revision:

• GB 7258, the national standard for operating safety requirements of motor vehicles, has been released as a draft for public consultation.
• GB 1589, which regulates dimensions, axle loads and mass limits for commercial combination vehicles, is still in the drafting stage.

The revision of GB 1589 will determine whether longer combination vehicles (LCVs) or European modular combination vehicles can be deployed in China. Unfortunately, there remains strong resistance from road safety authorities at this stage.

Best Wishes

Hao Zhang

HVTT Forum Vice President: Asia

张浩 博士 / ZHANG Hao (Ph.D)