Guangzhou: A city leading the fight against air pollution in China

Guangzhou is the capital of Guangdong province and China’s third largest city after Beijing and Shanghai. Numerous Japanese companies have expanded into this region of flourishing trade. While serious air pollution is often reported in China, Guangzhou has actively worked to address environmental concerns, resulting in a 58.5% reduction in PM2.5 particles and a 44.2% reduction in NO2 emissions (achieving targets for three consecutive years) compared to fiscal 2013 levels. By consistently producing these outstanding figures, Guangzhou has distinguished itself among China’s major cities.

An electric truck on a Guangzhou street

Reducing emissions by introducing electric trucks

China has set goals of reducing CO₂ emissions per unit of GDP by 65% compared to 2005 levels by 2030, and achieving carbon neutrality by 2060. In order to achieve these goals, regulations on automobile emissions are becoming stricter. In particular, diesel trucks have seen heavy regulation, with their use being restricted within some cities. For Yakult, delivering safe and secure products in a fresh state from our production sites directly to our customers and stores is a common pillar of our business operations throughout the world. In a hot and humid city like Guangzhou, which is located in the subtropics, refrigerated trucks are an indispensable tool. However, around 2018, Guangzhou Yakult Co., Ltd. began feeling the impact of government regulations on emissions, which led to the company’s decision to convert our fleet of diesel trucks into electric ones. Electric trucks cost 30–40% more than diesel ones, but thanks to a subsidy system set up by the Chinese government to encourage electric vehicle use, Guangzhou Yakult Co., Ltd. received an approximate 5% subsidy (as of 2021) to facilitate our introduction of electric trucks.

An electric truck at a charging station

Limited model options along with frequent breakdowns and challenges

When we began introducing electric trucks in 2018, there were few models suited to our business needs, so we were forced to lease heavy-duty models. However, few employees possessed the necessary licenses to operate a large vehicle, which made it difficult to set delivery routes and assign tasks. In addition, we frequently experienced breakdowns and other challenges. As we reviewed the way we used our vehicles in our daily operations and communicated with the leasing company about parts that needed improvement, we noticed a gradual reduction in breakdowns, and the leasing company was able to deal with issues more smoothly when they arose. Even so, three years after introducing these electric trucks, we still had no leasing options for models other than large vehicles, and were unable to resolve issues such as driver shortages and high costs. For this reason, in 2021 we shifted our strategy from leasing to directly purchasing electric trucks in order to meet our business needs.

Another major challenge in introducing electric trucks has been installing charging stations. At Guangzhou Yakult Co., Ltd., we have fast charging stations capable of charging vehicles up to 60 kW class, but it takes five to six hours to fully charge two vehicles at once. The charging station is designed to automatically stop when the vehicle is fully charged, but just in case something goes wrong, we make sure that charging only happens during hours when employees are present. In practice, even a fully charged vehicle has a maximum operating range of approximately 150 km. This suffices for deliveries within the city, but is a cause for concern when delivering to suburban areas.

Charging station

Electric vehicle use is expanding thanks to government support, making it possible to purchase vehicle models that suit our business needs

Back in 2018, there seemed to be few companies using electric trucks, but the government’s environmental initiatives over the past five years has rapidly popularized their use. Nowadays Guangzhou residents seem to naturally accept the sight of electric trucks moving throughout the streets.
An electric truck is relatively expensive compared to a gasoline or diesel vehicle, and the issue of limited charging station availability remains unresolved. On the other hand, the price of gasoline, including diesel fuel, has risen steeply, so that electric trucks now offer operating cost benefits that are equal to or even greater than those of diesel trucks. Drivers also appreciate their smooth acceleration.
Still, the greatest effect of introducing electric trucks has been the reduction of our environmental impact. If electric vehicles become more widely adopted throughout Guangzhou, air quality would be improved, helping to protect people’s health. For this reason, Guangzhou Yakult Co., Ltd. will continue to take the lead and promote the use of these vehicles.