Sinotruk keeps on truckin' into record books, as sales take off

Leading Chinese commercial vehicle manufacturer China National Heavy Duty Truck Group, or Sinotruk, is seeing its market performance hit record highs this year, according to remarks made at its annual business conference.

Sharp growth in the domestic truck market is being driven by robust development of China's logistics industry and increasing infrastructure projects all over the country, Sinotruk Chairman Wang Bozhi told the conference on Dec 17.

"Against this background, Sinotruk has been promoting innovation and improving its product quality and service capacity," he said.

The group is seen achieving sales of 300,000 vehicles this year, up 47 percent on last year, with revenue estimated at 90 billion yuan ($13.7 billion), up 30 percent year-on-year.

This year, its tractors unit experienced the highest growth rate in the industry. Sinotruk's engineering vehicles unit maintained its leading position, with sales increasing 172 percent on the previous year. The natural gas heavy duty truck sector grew seven-fold, the company added.

Trucks equipped with engine technology from MAN, Sinotruk's German strategic partner of since 2009, increased sales by 97 percent this year, and accounted for 43 percent of the company's total domestic sales.

The company aims to sell 330,000 vehicles next year, taking group revenue to more than 100 billion yuan.

Wang said Sinotruk launched its internationalization strategy in 2004, and has sold its products to more than 100 countries and regions around the world. It has built eight assembly plants abroad, including Russia, Malaysia and Nigeria.

One of the latest overseas manufacturing projects is in Addis Ababa, capital of Ethiopia, in partnership with local company N.A Metal Industry& Engineering.

Starting operations on Nov 25, the factory is Sinotruk's second assembly line in Ethiopia and is expected to have a production capacity of 600 vehicles a year.

A Sinotruk factory in Paraguay opened in September, helping the company to secure a more than 80 percent share of that country's heavy duty trucks market.

Thanks to the Belt and Road Initiative, Sinotruk exported 32,000 vehicles in the first 11 months of this year, increasing 34 percent year-on-year, accounting for half the total number of China's exported heavy duty trucks.

Wang said the company is entering global high-end markets, and will conduct international cooperation in areas including new energy and intelligent vehicles.

According to Sinotruk's overseas development plan, its annual sales of medium and heavy duty trucks in overseas markets will top 60,000 vehicles by 2020, accounting for 35 percent of the company's total sales. At the same time, the overseas business will generate 20 billion yuan a year in revenue.

By 2022, overseas markets will account for half of the company's total sales.

The company will also continue seeking overseas partners, including research institutions and companies with core technologies or products. Five to 10 new overseas assembly plants will be built in the next five years.

"We will take opportunity from the Belt and Road Initiative to expand our international markets and build overseas innovation centers," Wang said.

Smart trucks

The first batch of 20 Sinotruk intelligent trucks were delivered to users on Dec 17, marking the start of industrialization and commercial use of such trucks in the country.

"Intelligence and internet connectivity is a definite trend of the future auto industry," said Cai Jin, deputy head of the China Federation of Logistics and Purchasing.

"China has 13.5 million trucks, surpassing the number in the United States. It needs to improve the quality of its logistics services, and the market requires smarter and safer vehicles."

The design of Sinotruk's first-generation intelligent truck is based on its Sitrak models. It has integrated many automatic systems, including the advanced emergency braking system, electronic brake system, electronic stability control, lane departure warning system, hill start assist and adaptive cruise control.

The product is the result of Sinotruk's independent innovation and cooperation with many world leading companies including MAN and vehicle control systems developer Wabco.

Che Che Man, a logistics services provider in Chengdu, Sichuan province, was one of Sinotruk's first six clients for its intelligent trucks.

Its purchasing center supervisor, Wang Yabin, said safety was the primary reason they chose the product.

"Three of the five intelligent systems are designed to enhance safety, and the hill start assist and the adaptive cruise control systems will provide great convenience for truck drivers," he said.

"The launch of intelligent trucks means China's development in the field is no longer limited to lab research or tests on specific roads, but has actually entered various sectors of the logistics industry," said Sinotruk President Cai Dong.

He added that intelligent trucks were tested on various Chinese roads for a year to gather data, and they are suitable for carrying hazardous chemicals and for delivering parcels.

zhangzhao@chinadaily.com.cn