ACT: Battery electric truck production will triple in 2023

A Kenworth electric truck

ACT and Rhein Associates says that battery electric truck production will triple in 2023. 

But even though it's a leap, analysts caution, it's still pretty moderate when compared to the market as a whole, making up less than 1% of total truck production. 

"The California Air Resources Board (CARB) approved at $2.6 billion investment plan to assist transition to zero-emission transportation, with the majority of the incentives and subsidies focused on cleaner trucks and buses," says Andrew Wrobel, a senior powertrain analyst with Rhein Associates. "Battery electric truck production is expected to triple this year compared to last. However, this growth is still moderate within the broader market, accounting for less than 1% of total truck production." 

[RELATED: Cummins' Rumsey says 'incentives and infrastructure' essential to new powertrain acceptance]

Kenny Vieth, president and senior analyst at ACT Research, says that as for the U.S. economic outlook, there have been surprises. 

"The U.S. economy grew by 2.9% in Q4 '22, surprising many analysts and pushing full-year 2022 growth to 2.1%," he says. "In addition to stronger-than-expected Q4 growth, this marked the first quarter since the start of the pandemic that every economic sector contributed positively to the economy's performance. Our view of the U.S. economy remains largely consistent with the perspectives we have offered to readers over the last few months, but with a shift in timing: A recession remains likely, mild in degree and duration. But instead of being centered in 1H '23, our current thinking aligns downturn timing with the game of chicken being played in D.C. around the debt ceiling and U.S. credit worthiness." 

Learn how to move your used trucks faster
With unsold used inventory depreciating at a rate of more than 2% monthly, efficient inventory turnover is a must for dealers. Download this eBook to access proven strategies for selling used trucks faster.
Used Truck Guide Cover