China National Heavy Duty Trucks fully enters the heavy medium truck, passenger car and engineering machinery fields

China National Heavy Duty Truck predicts that the domestic demand for heavy trucks will continue to grow in the next five years. The state will invest 100 billion yuan in strengthening disaster prevention, disaster relief, various infrastructure projects, and the development of the western region. Based on the development of heavy-duty trucks, Sinotruk aims to diversify risks. In the future, it will also develop mid-sized trucks, light trucks, large passenger vehicles and construction machinery-related vehicle businesses. The construction machinery-related business will become a new highlight of the Group's business in 2011. To increase the overall gross profit margin. It may be that state-owned enterprises will be better able to handle procedures for state-owned enterprises. In short, they will put the best business into listed companies, but they will not involve the car business for the time being.

In August 2010, Sinotruk signed a cooperation agreement with Chengdu Trump Group. The two parties will jointly invest in the establishment of the Chengdu Trump Commercial Vehicle Company of China National Heavy Duty Truck Group, of which Sinopec will invest 325 million yuan, holding 80% of the shares. The joint venture company focuses on the development of heavy, medium, light and micro full range of commercial vehicles. By 2015, the joint venture company will strive to achieve the goal of 100,000 Taichung, heavy trucks, and 300,000 light and micro-cards. In 2011, it will first launch 100,000 medium- and heavy-duty trucks. According to another report, Sinotruk intends to acquire Shanghai Huizhong’s major assets such as technology and molds. Shanghai Huizhong is one of the subsidiaries of SAIC and its main business is heavy truck and parts business. China’s continued economic growth in the future will promote substantial investments in the construction of roads, docks and railways, and will be able to build large-scale projects. However, many vehicles related to construction machinery are imported from abroad. Heavy truck has a certain technical foundation and development space in this business.

At the same time, the market price of steel products fluctuates, and heavy-duty trucks have improved through technological innovation to reduce the amount of steel used, thereby reducing the impact of steel prices. If some people point out that the price of steel has risen, the profits of CNHTC's products will decline accordingly. It only reflects that some people have not conducted any specific and in-depth study of the industry. Market participants estimate that current steel products account for about 20% of the total cost of the overall heavy truck industry in China.

For the market, we often compare Sinotruk to Weichai Power. China National Heavy Duty Truck emphasizes that Weichai Power is a company that produces engines, and Heavy Trucks is a production vehicle. The two are completely incomparable. Weichai Power was once Steam subsidiary, but now the two sides have no affiliation.