In an inspiring continuation of its leadership, Sinotruk has redefined excellence at the top, achieving record-breaking performance indicators in the first quarter of 2024 and securing a strong start to the year.
From securing the fourth place in the industry in 2018, rising to third in 2019, breaking the 500,000 vehicle sales mark in 2020, to leading the market in 2021 and 2022, Sinotruk has consistently led the Chinese heavy truck industry. Under the rallying spirit of striving for leadership, Sinotruk not only added achievements atop its high position but also set new peaks in early 2024.
On March 28th, the delivery of the 100th dual-fuel logistic vehicle equipped with Weichai WP13NG and WP15NG natural gas engines to a major client in Shijiazhuang marked a significant milestone. Sinotruk’s sales team, once used to competing for orders, now finds itself in a scenario where the demand is so high that they are racing to secure vehicles for their clients.
The first quarter of 2024 saw Sinotruk build on its back-to-back leadership in heavy truck sales over the past two years. The company recorded a revenue of 48.2 billion yuan, a 20.1% increase year-over-year; taxes and profits of 24.8 billion yuan, up 6.8%; and a profit of 19.6 billion yuan, a substantial 40.9% rise. These achievements highlight the rapid and high-quality growth of Sinotruk, with profits growing significantly faster than revenue.
The annual reports released on March 25th by Sinotruk (03808.HK and 000951.SZ) revealed an astonishing year-over-year net profit growth of 218.6% and 405.5% respectively for 2023. These figures greatly surpassed market expectations and solidified Sinotruk’s leading position in the industry.
Sinotruk’s commitment to technological innovation has been a crucial driver of its journey to the top. Over the past five years, the company has invested nearly 15 billion yuan in R&D, equaling the total of the previous 15 years. This investment reflects Sinotruk’s dedication to overcoming key technological challenges and leading in high-end commercial vehicle technology.
The first quarter of 2024 also saw Sinotruk achieve new export records. By March, exports had reached 37,000 vehicles, a 19.2% increase compared to the previous year. Sinotruk has now solidified its position as the leading Chinese commercial vehicle brand internationally, continually holding half of China’s heavy truck export market and breaking its own monthly export records.
In response to the high demand for Sinotruk’s natural gas heavy-duty trucks, the collaboration between Sinotruk and Weichai Power has been exemplary. Their effective partnership has led to a market share of 30.5% for Sinotruk’s natural gas tractors, thanks to the vehicles’ superior power and lower fuel consumption.
As Sinotruk continues to compete against the world’s top brands, it remains dedicated to not only leading in China but also in shaping a world-class heavy vehicle industry. The commitment to high-quality development is clear as Sinotruk races against itself, marking new heights of development this spring and contributing to the high-quality growth of Shandong Province.
Collaborative Development for Mutual Wins
As a member of Shandong Heavy Industry Group, Sinotruk benefits from a unique industrial synergy and collaborative advantages, which enable it to rapidly respond to market demands. A prime example is the Sinotruk high-horsepower natural gas tractor, which has quickly become a market favorite in the first quarter of 2024, now commanding a 30.5% market share and setting the industry standard.
The market for natural gas tractors was identified as a trend opportunity, and Weichai Power quickly supplied a dedicated engine for Sinotruk. Thanks to the close cooperation and communication between these sibling companies, the integration of the engine with the vehicle is highly optimized, reducing per hundred kilometer gas consumption by 1 kg compared to similar products. This advantage has been recognized by customers, creating a positive market reputation and fostering a virtuous cycle of growth.
A representative from Shandong Zhongman Haiautomobile Sales Co., Ltd., provided a calculation showing the cost benefits: with the current price of gasoline at 6.5 yuan per liter and natural gas at 4.5 yuan per kilogram, a vehicle traveling 200,000 kilometers annually can save approximately 120,000 yuan in energy costs. For a logistics company with 30 trucks, this amounts to an annual saving of 3.6 million yuan. Therefore, Sinotruk’s natural gas heavy trucks are in high demand, underscoring the strength of the collaboration between Weichai Power and Sinotruk.
The rapid market response and synergistic collaboration are key advantages for Sinotruk, allowing it to seize market opportunities swiftly. “In a market that changes in the blink of an eye, missing out can mean losing a competitive edge. Being able to respond quickly and work together effectively is one of Sinotruk’s major strengths,” said the representative.
Spring, a Time for New Beginnings and Growth
Spring is not just a season but a symbol of new beginnings and the relentless pursuit of growth. Positioned at the pinnacle of the industry, Sinotruk competes with itself, marking each new development with a plus sign and setting new peaks with solid performances. As spring ushers in new opportunities, Sinotruk is ready to drive the construction of a modern, strong, prosperous, and beautiful new era of socialism with Chinese characteristics in Shandong Province.
Sinotruk’s continued dominance at the peak of China’s heavy truck industry showcases its expansive vision and bold spirit. The leadership’s pledge at the 2024 Partner Conference—where they promised to meet any request from their R&D staff, provide whatever they dare to ask for, and boldly reward their achievements—highlights a commitment to innovation and excellence that reverberates throughout the commercial vehicle industry in China.
In this time of high achievement, Sinotruk not only continues to break its own records but also sets the stage for a new chapter of collaborative and sustainable growth, contributing significantly to the industry’s and region’s prosperity.
