At present, China's forklift industry has not fully realized the complete differentiation of competition, enterprises rely more on price competition to win market share, resulting in a low industry gross margin level.  With high durability, reliability and practicability, China's electric forklifts sold 283,000 units in 2020, accounting for 45.8& of the total sales volume of forklifts. In the first half of 2021, 211,000 units were sold, accounting for 49.8% of the total sales volume of forklifts and the sales volume proportion is gradually increasing.  In the future, with the increasing emphasis on environmental protection and other multiple factors, electric forklifts will gradually squeeze the market share of internal combustion forklifts.  

Electric forklift sales accounted for a gradual increase

With the upgrading of China's consumption and the rapid development of e-commerce industry, consumers' requirements for the speed of logistics are gradually increasing.  In order to adapt to market demand, leading enterprises in the express industry, such as JINGdong, STO, SF Express, have increased investment in sorting robots, AGV and other equipment.  Among them, AGV logistics sorting system freed logistics workers from monotonous and repetitive high-intensity work, greatly improved the efficiency and accuracy of logistics sorting, and gradually increased sales.  In addition, with the continuous promotion of supply-side structural reform, the sales structure of the forklift industry has been optimized, and the proportion of electric forklift sales has gradually increased.  By 2020, the domestic sales volume of electric forklifts will be 283,000 units, accounting for 45.8%. In the first half of 2021, the sales volume will be 211,000 units, accounting for 49.8%. Electric forklifts will gradually squeeze the market share of internal combustion forklifts.

Compared with developed countries, the proportion of electric forklifts in China still has room to rise  

In the first half of 2021, 211,000 electric forklifts were sold in China, accounting for 49.8% and up 100.8% year-on-year.  It has increased from 23.5% in 2012 to 49.8% in the first half of 2021, but there is still a large space for development compared with 65%-75% in European and American countries, and the proportion of electrification will continue to rise in the future.  

Electric forklift truck indoor operation has more environmental advantages

Since most forklifts are mainly used for transportation in warehouses, the exhaust gas emitted by internal combustion forklifts in the operation process causes great pollution in a closed storage environment.  Electric forklifts have the advantage of reducing tail gas pollution and noise pollution while completing the same workload, providing a more comfortable operating environment.  

Electric forklifts have more cost advantages

In terms of energy cost, the consumption cost of electric energy is lower than that of diesel or liquefied petroleum gas, and the use of electric forklift can reduce the energy cost.  At the same time, the maintenance cost of electric forklift is relatively low, the longest maintenance cycle of internal combustion forklift is 500h, and the maintenance cycle of electric forklift has been able to reach more than 1000h.  Electric forklift maintenance is mainly to check and clean, every 2000h or 3000h to replace a hydraulic oil, gear oil and hydraulic oil filter.  The internal combustion forklift in addition to lubrication, the longest every 500h to replace the engine oil and oil filter, every 1000h to replace hydraulic oil, oil, transmission oil and oil filter, relatively speaking, electric forklift maintenance costs are lower.  

Lithium batteries will accelerate the replacement of lead-acid batteries

Before lithium-ion power was widely used, lead-acid batteries dominated the field of electric forklifts due to their low cost.  With the gradual expansion of the production scale of lithium battery, the production cost of lithium battery also gradually decreases. Although the cost is still higher than that of lead-acid battery, it has become a major development trend of electric forklift with its long service life and high energy density.  In the future, with the further decrease of the cost of lithium battery, the replacement of lead acid battery by lithium battery will be accelerated, and the production cost of electric forklift will also be further reduced.  

Based on the above factors, we believe that there are three main reasons why electric forklift will gradually replace internal combustion forklift. First, the main operating environment of forklift is indoor, which is more friendly than internal combustion forklift.  Second, in view of the experience of European and American countries, China's electric forklift still has greater room for progress;  Third, electric forklifts have more cost advantages than internal combustion forklifts.  At the same time, as the cost of lithium battery continues to plummet, the advantage of electric forklift will be more prominent.