Heavy truck faucet, highlight the king's style
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October 06 01:05:28, 2025
China National Heavy Duty Truck (CNHTC), a subsidiary of the former Jinan Truck Co., Ltd., has emerged as a key player in the domestic market through a backdoor listing. The company is primarily composed of its manufacturing and sales divisions, along with the bridge box division, which is set to be incorporated into the listed entity. The manufacturing division operates two complete vehicle assembly plants, producing and selling models such as Steyr, Steyr King, and HOWO. These vehicles are equipped with engines offering power outputs ranging from 260 to 410 horsepower across five gear configurations. With an annual production capacity of approximately 70,000 units, the bridge box division supports around 60,000 full vehicles per year, operating at near-full capacity. The fourth-phase expansion project, expected to launch in June 2007, will further boost the bridge production capacity to 80,000 units annually.
The restructuring of the heavy truck industry has driven strong growth in domestic sales. Although the sector saw a decline in the first quarter of 2006, trucks with over 15-ton carrying capacities showed a positive recovery trend. Rising oil prices and increased toll-by-weight policies have accelerated the shift toward larger, more powerful trucks. As the market leader in this segment, CNHTC is well-positioned to benefit from this structural transformation, which is characterized by steady overall demand and a growing preference for high-performance, large-tonnage vehicles.
CNHTC's success is largely attributed to its low-cost strategy, which aligns with the current market demand for fuel-efficient and economical trucks. Its leading model currently retails at around 220,000 RMB, significantly lower than the 300,000 RMB price tag of its main competitor, Shaanxi Auto Delong Group. Despite having a smaller production volume—only 16,000 units in 2005—CNHTC maintains a clear production advantage. This pricing leadership helps it dominate the market effectively.
Quality and performance remain critical for low-cost strategies. CNHTC excels in this area, ensuring that its products meet or exceed industry standards. Most major components are developed in-house, with only the steering wheel imported. The Steyr King model, launched in 2002, replaced older designs after integrating advanced foreign technologies. The self-developed HOW7 series improved safety and comfort, earning widespread acclaim upon its 2005 release, with over 10,000 units sold in the first year. In April 2006, eight of CNHTC’s models were included on the Ministry of Communications’ commercial vehicle recommendation list, a feat that outpaced industry giants like FAW and Dongfeng.
CNHTC also leads in marketing and information systems. Its 4+1 sales model includes dealers, refitting companies, system users, and after-sales services, ensuring comprehensive coverage. The company was among the first to implement a 4S store concept and “kinship service,†enhancing customer experience. With over 70 new products launched annually, this approach has consistently yielded strong results. Additionally, since 2001, CNHTC has invested over 45 million yuan in IT infrastructure. A fully integrated order-to-after-sales information system enables real-time tracking of production, inventory, spare parts, and sales data, significantly improving operational efficiency.
The company’s robust marketing network and advanced information system not only enhance sales quality but also provide timely customer feedback, helping CNHTC identify and respond to market trends effectively. For instance, the popularity of its cement mixer truck chassis in 2006 was a direct result of identifying a market hotspot, contributing to 40–50% of the company’s total sales in Q1 2006.
In the heavy truck industry chain, CNHTC holds a dominant position. While the separation of Weichai Power and CNHTC sparked speculation about China developing an independent engine supplier akin to Cummins, the reality is that OEMs still maintain control. This is due to the lack of a mature, independent supply chain in China, where even powerful suppliers like Weichai cannot replace core OEMs. Moreover, OEMs have direct contact with end-users, giving them a unique advantage in building relationships and service networks. While some foreign manufacturers vertically integrate core components, CNHTC is actively pursuing similar strategies. Therefore, the company is unlikely to face significant pressure from suppliers such as engine or transmission manufacturers in the near future.