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Strategic Corporate Profile of CNHTC Portfolio 

  • January 2016
  • -
  • Frost & Sullivan
  • -
  • 63 pages

Summary

Table of Contents

Strategic Corporate Profile of CNHTC Portfolio : Company’s Export Sales will Rise from 18% in 2014 to 30% by 2022

This research service analyzes the strategic corporate profile of China National Heavy Trucks Group Corporation (CNHTC), one of the largest manufacturers of heavy-duty vehicles in China. The study examines in detail the strategies and activities of the company in both, the domestic market of China as well as in exports. The study includes an executive summary, an overview of CNHTC, its sales strategy and regional activities, the product portfolio, manufacturing and R&D strategies, its technology focus, and key conclusions.

Executive Summary—Key Findings

In 2014, China National Heavy Duty Truck Group Company Limited (CNHTC) sold commercial vehicles, of which % was in overseas markets. CNHTC was recognized by the Chinese government for 10 consecutive years for exporting the highest number of heavy duty (HD) trucks among Chinese OEMs. It is also among the world’s top 5 largest medium duty (MD) and HD truck makers by volume.

Through a strategic partnership with MAN group, CNHTC integrates MAN platforms to produce economically priced high-end trucks for the domestic market. Its MD-HD truck sales in China alone are expected to reach about units in 2022. However, a decline in China’s economic growth and/or government regulations may slow down growth in the Chinese commercial vehicle (CV) market.

CNHTC’s partnerships with local manufacturers/suppliers have helped it establish and develop sales in overseas markets. At present, CNHTC sells commercial vehicles in overseas markets through the semi-knock-down (SKD) assembly approach.

CNHTC is expected to build more complete-knock-down (CKD) assembly plants in overseas markets by 2018. The percentage of R&D expenses to the operating income was % in 2014. This is a decrease of % from 2012. However, in absolute terms its is an % increase. CNHTC’s R&D center, the National Engineering and Research Center of Heavy Duty Trucks, in Jinan city, has played a pivotal role in the development, demonstration, and popularization of Chinese MD-HD truck prowess.

As of 2015, CNHTC’s product portfolio had product lines, with over variants. One-third of the product variants were based on MAN platforms. CNHTC intends to integrate the various platforms of its trucks and buses.

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