The automotive industry in China, particularly the commercial vehicle segment, is undergoing a transformative phaseRecently, during the 2025 Chery Commercial Vehicles Partners Conference held on December 31, 2024, Chairman Yin Tongyue expressed the company's ambition to leverage its extensive experience in passenger cars to rejuvenate and enhance its commercial vehicle divisionBy applying systemic capabilities and resources accrued from passenger car developments, Chery aims to inject new vitality into the commercial sectorThe goal is not merely to participate in the market but to make significant advancements that lead to innovative breakthroughs and reestablish Chery as a dominant player in the industry.

Chery's strategic emphasis on commercial vehicles is reflective of a broader trend among automotive manufacturers, where there is a notable shift towards the commercial vehicle segmentTraditionally dominated by passenger vehicles, many companies are now strategically diversifying into commercial vehicles, recognizing the lucrative potential of this marketAlthough the scale of the commercial vehicle sector is smaller compared to passenger vehicles, it still boasts impressive annual sales in the millionsThe higher pricing and profit margins in commercial vehicles, along with relatively fewer competitors in this field, present compelling reasons for passenger vehicle manufacturers to strengthen their foothold in commercial vehicle segments.

The push into commercial vehicles is particularly salient as the Chinese automotive market continues to thriveThe China Association of Automobile Manufacturers (CAAM) reported significant growth in passenger vehicle production and sales figures for the year 2024, highlighting that from January to November, production reached 24.45 million units, with sales closely mirroring this numberIn particular, November 2024 alone saw production and sales of 3.11 million and 3.00 million units, marking growth rates of 14.9% month-over-month and demonstrating a thriving market responding to policies encouraging trade-in initiatives and year-end promotions.

Amidst this robust performance, Chery achieved a historic milestone with total vehicle sales reaching 2.6 million units in 2024, reflecting a staggering growth of 38.4% year-on-year

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This exceptional success has bolstered the company's confidence as it pivots to strengthen its commercial vehicle business.

At the conference, Yin reiterated Chery's commitment to harnessing a research and development team of tens of thousands to ensure swift advancements in commercial vehicles that are increasingly electric, intelligent, and internationalizedThe vision extends beyond national achievements, aiming for a significant presence on the global commercial vehicle stage.

Chery's ambitious sales forecasts for the next five years illustrate this commitment further: from 300,000 vehicles per year in the cultivation phase to 600,000 in the breakthrough phase and exceeding 1 million in the leading phase by 2030. This progression points to Chery’s strategic stakes in not just gaining a foothold in commercial vehicles but also in redefining market expectations for themselves.

Geely, another pivotal player in the automotive landscape, has also recognized the growth potential within commercial vehiclesThe acquisition of Huaping Xingma in 2020 and its subsequent rebranding to Hanma Technology—a critical producer of heavy-duty trucks and specialized vehicles—demonstrates Geely’s strategic investmentsFurthermore, Geely's long-distance electric vehicle brand is noteworthy for its pioneering focus on new energy solutions within the commercial vehicle sector, paving the way for developing a full range of vehicle types from heavy trucks to light commercial vehicles.

As the market evolves, the demand for new energy commercial vehicles continues to intensifyExperts predict a marked rise in the market share of new energy in commercial vehicles, with advanced electrification and fuel alternativesOn January 9, 2025, a representative from Haipote, a rising competitor in the market, stated, “The current global wave of energy reform has amplified the need for structural replacements in commercial vehicles,” hinting that significant shifts are on the horizon as more companies enter this burgeoning sector.

Haipote, focusing mainly on hydrogen fuel cell logistics solutions, positions itself strategically in the early developmental phase of this sub-market

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