Sinotrucks launches electric Sitrak trucks, eyes 40-50% cut in haulage costs

Nigerian Sinotrucks Limited has brought electric commercial trucks into the Nigerian market, betting that cheaper running costs will persuade manufacturers and distributors to add them to their fleets.

The company, a distributor of China's Sinotruk brand and a vehicle assembler recognised by the Federal Government, says the Sitrak electric trucks could cut fleet operating expenses by 40 to 50 percent. Its founder and managing director, Alfred Okugbeni, said the aim is to bring down the cost of moving goods, which feeds into the prices shoppers pay.

"The need to crack this has become imperative," Okugbeni said, describing low-cost operating vehicles as one of the main ways to do it.

Why it matters for prices

Transport is a big part of what businesses spend on getting goods to market, and those costs show up in the price of food and other essentials. Okugbeni said the company is "looking at tackling major issues like inflation" by attacking transport costs.

Sinotrucks already sells trucks that run on compressed natural gas (CNG). Okugbeni said customers using those have saved 30 to 35 percent on fuel, and that electric trucks should go further.

The first phase focuses on light trucks for deliveries within cities. According to Okugbeni, these can cover up to 200 kilometres a day, enough for routes between factories, warehouses, shops and distribution centres.

The company is courting makers and distributors of fast-moving consumer goods (FMCG), such as food and household products. Okugbeni said such firms often have spare power at night, so they can charge trucks at their own premises and send them out during the day, rather than relying on public charging points.

"Charging stations are being built," he said, adding that factories with surplus energy make it easier for commercial trucks. Medium-duty vehicles for longer regional runs are planned as charging options spread.

Financing and service support

Buying a truck is a big outlay, so Sinotrucks said it has partnered with banks and other financial institutions to make customer finance easier to get than before. Okugbeni also pointed to government-backed credit guarantees as a way to widen access to bank loans.

The company has service hubs in Lagos, Kano, Benin, Abuja, Port Harcourt, Ibadan and Ogun State, where its main operations sit. It plans to use pickup vehicles as mobile service units, and it trains both technicians and drivers at its Ogun facility.

Okugbeni does not expect diesel and CNG to disappear soon. He favours fleets that mix technologies, matching each vehicle to its route and access to refuelling or charging. Diesel, he said, still offers flexibility, while CNG saves money where stations are within reach.

Longer term, Sinotrucks says it wants to deepen local assembly and component production. Okugbeni said full assembly plants would follow when policy conditions are right, and that success for the industry would mean at least 30 to 40 percent local input.