China National Heavy Duty Truck (CNHTC), which went public through a backdoor listing, is a subsidiary of the former Jinan Truck Co., Ltd. The company is primarily composed of its manufacturing and sales divisions, along with the bridge box company that will be listed in the future. The manufacturing division operates two complete vehicle production lines, serving as final assembly plants. They mainly produce and sell models such as Steyr, Steyr King, and HOWO, with engine power options ranging from 260 to 410 horsepower across five gear levels. Currently, the company's annual production capacity stands at around 70,000 units, while the bridge box company has a supporting capacity of 60,000 units per year, operating at full capacity. It is expected that the fourth-phase expansion project, scheduled to begin operations in June 2007, will increase the bridge support production capacity to 80,000 units annually.
The restructuring of the heavy truck market has led to significant growth in domestic sales. Although the heavy-duty truck industry faced a decline in the first quarter of 2006, trucks with a carrying capacity exceeding 15 tons showed signs of recovery. With rising oil prices and the implementation of weight-based toll systems, there has been a growing preference for "high horsepower, large tonnage" vehicles. As the market leader in this segment, CNHTC is well-positioned to benefit from the ongoing structural shift in the heavy truck industry.
CNHTC's development strategy focuses on "leading technology, high quality, low cost, and internationalization." Its low-cost strategy has proven highly effective, giving it a strong competitive edge. In today’s market, demand is largely driven by cost-effective and fuel-efficient models. At around 220,000 yuan, CNHTC’s current price point is significantly lower than its main competitor, Shaanxi Auto Delong Group, which sells at about 300,000 yuan. Despite having a smaller production scale—only 16,000 units in 2006—CNHTC maintains a clear advantage in volume, allowing it to dominate pricing in the market.
For a company focused on low-cost strategies, maintaining product quality and performance comparable to competitors is essential. CNHTC excels in this area. Most of its major components are domestically produced, with only the steering wheel being imported. By integrating advanced foreign technologies, the Steyr King model launched in 2002 successfully replaced older versions. The self-developed HOW7 series improved safety and comfort, and its luxurious design quickly gained popularity upon release in 2005, selling over 10,000 units in the same year. In April 2006, eight of CNHTC’s models were included on the Ministry of Communications’ commercial vehicle recommendation list, a feat that even leading companies like FAW and Dongfeng failed to achieve.
CNHTC also leads in marketing network and information system development. Its 4+1 sales model includes distributors, refitting companies, system users, and after-sales services, ensuring efficient market penetration and customer satisfaction. The company was among the first in the industry to implement 4S image stores and "kinship service," which have helped it achieve strong sales performance when launching more than 70 new products annually.
In terms of IT infrastructure, CNHTC has invested heavily since 2001, with hardware expenditures exceeding 45 million yuan. The company has implemented an integrated order-to-after-sales information system, enabling real-time tracking of production, inventory, spare parts, and sales. This has significantly improved operational efficiency.
CNHTC’s robust marketing network and advanced IT systems not only enhance sales quality but also allow timely feedback of customer data, helping the company identify and respond to market trends effectively. For example, the success of its cement mixer truck chassis in 2006 was due to its ability to detect market hotspots, contributing 40-50% of the company’s total sales in the first quarter of 2006.
Finally, CNHTC dominates the heavy truck supply chain. While the separation of Weichai Power and CNHTC once raised questions about China’s potential to develop an independent engine supplier, the reality is that OEMs still hold the upper hand. China lacks a truly independent supplier with dominant technological capabilities. Even Weichai Power’s temporary supply suspension did not impact CNHTC’s sales, proving that its products are not irreplaceable. Moreover, OEMs maintain direct contact with end-users, giving them a natural advantage in customer relationships and service networks. Therefore, CNHTC remains secure against potential pressure from suppliers such as engine or transmission manufacturers.
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