In the first half of 2024, China’s commercial vehicle production and sales reached 2.005 million and 2.068 million units respectively, representing year-on-year increases of 2% and 4.9%. However, market growth significantly slowed in the second half of the year. According to Beidou data, terminal sales of domestic medium and heavy trucks in July were approximately 42,000 units, a slight decrease of 4% compared to the same period last year. Major manufacturers continued their “de-stocking” actions throughout the month. However, FAW Jiefang was exceptionally busy in July, hosting the first “Jiefang User Day,” celebrating the rollout of its 9 millionth truck, and holding the mid-year channel communication meeting—all concentrated in the peak of summer. These direct-to-end-user, market-influencing events not only made the “off-season not slow” but also laid a good foundation for Jiefang’s market performance in the second half of the year.
Domestic Medium and Heavy Truck Terminal Market Share at 28%, Leading the Industry
It is reported that in July, FAW Jiefang’s terminal sales of domestic medium and heavy trucks reached 9,800 units, representing year-on-year growth of 3.6% and a month-on-month increase of 12.1%, capturing 28% of the industry’s terminal market share (excluding new energy). Jiefang consistently maintains the top position in terminal market sales. Among the various segments, the market share for tractors is 33.5%, for cargo trucks is 25.9%, and for NG trucks is 30%, continuously leading in each sub-market. The terminal market share in the regions of Hebei, Jiangsu, Ganxiang-E, Yun-Gui, Yu-Gui, Hei-Ji, Yue-Min, and Jing-Jin all achieved month-on-month growth. Despite the overall market decline in July, Jiefang’s unique product advantages and a series of market strategies enabled it to lead the market against the trend, maintaining the brand image of “FAW Jiefang, Leading the Way.”
First “Jiefang User Day,” Kicking Off July
Historically, “July” and “FAW Jiefang” have a deep-rooted connection. In July 1956, the first Jiefang-branded vehicle was successfully trial-produced. On July 15, 1986, the second-generation Jiefang product, the CA141, began mass trial production. On July 15, 2001, the 3 millionth Jiefang truck rolled off the production line. On July 15, 2002, the Jiefang “Four Major” enhanced model was introduced. On July 15, 2004, the Jiefang Aowei rolled off the line. On July 15, 2007, the sixth-generation Jiefang product J6 was officially launched. In July 2021, Jiefang crossed the milestone of 8 million vehicles. This year, on July 15, FAW Jiefang defined the day as the first “Jiefang User Day.” They meticulously crafted “7+1” grand gifts, including in-store rewards, online lotteries, special vehicle flash sales, and interest-free financial services. Nationwide dealers participated in a comprehensive gratitude campaign, reinforcing Jiefang’s customer-centric business philosophy and conveying the importance of celebrating with users, giving them a sense of participation and honor. The establishment of “Jiefang User Day” not only enhanced brand influence but also positively impacted the terminal market, laying the foundation for sales growth at mid-year.
J7 Innovation Model Takes Over at 9 Million Units, Writing a New Chapter for Jiefang
Notably, on July 16, 2024, the 60 millionth vehicle from China FAW and the 9 millionth Jiefang truck rolled off the production line. Today, China FAW has developed into a large state-owned automotive enterprise group, with a cumulative production volume of 60 million units, accounting for about one-seventh of China’s total automobile production. Over the 71-year journey, FAW Jiefang has completed seven generations of product iterations, achieving an impressive 9 million units, crowning the Jiefang brand and China FAW with glory. During the event, China FAW’s independent core technology and the J7 innovation technology platform were officially released. As the new-generation versatile heavy truck “J7 Innovation Model” slowly rolled off the production line, it not only showcased Jiefang’s technological strength, product quality, and market reputation but also marked an important milestone in Jiefang’s journey towards becoming a world-class enterprise.
The “J7 Innovation Model,” a world-class high-end heavy truck, is like a “bombshell” in the currently stable commercial vehicle market, with its product power not to be underestimated. The new truck focuses on three major energy-saving directions: power domain control, vehicle predictive control, and ultra-low resistance. It has broken through 16 core technologies, solving the challenges of energy saving and power balance in mountainous and plateau areas. The whole vehicle is 14% more energy efficient, saving 4 liters of fuel and 3 kilograms of gas per 100 kilometers, potentially saving users up to 100,000 yuan in vehicle costs annually. Its arrival fully demonstrates Jiefang’s leading product power and marks a solid step forward on the road to independent control of key core technologies. It will be a key product for Jiefang’s overseas market efforts in the next three years, continuously providing momentum for Chinese commercial vehicles to go global and serve worldwide, writing a new chapter in “Made in China.”
Building the Industry’s Most Comprehensive Product Line and Preparing for the Offensive
In late July, Jiefang’s mid-year channel communication meeting was held in Yinchuan. As a marketing conference that connects the first and second halves of the year, the meeting reviewed the marketing achievements in the first half and deployed and adjusted the marketing strategies for the second half. In the first half of this year, Jiefang’s medium and heavy trucks achieved “double firsts” in domestic wholesale and terminal sales in a fiercely competitive market. The overseas market maintained “leapfrog” development, new energy development continued on the fast track, with a significant increase of nearly 140%, and the industry’s leading position was maintained in 10 sub-markets including coal, LTL, daily industrial products, express delivery, green channels, hazardous chemicals, and natural gas. After the marketing reform last year, Jiefang launched an elite combat marketing model supported by a large platform, significantly improving market performance. At the same time, to respond to the changing commercial vehicle market in the second half of the year, Jiefang insisted on a dual-drive strategy of innovation and reform, laying out the most comprehensive product series in the industry, covering “eight power domain combinations, 22 new products, and seven technological innovations,” to prepare for future market offensives.
At the meeting, Jiefang’s leader Wu Bilei stated, “Jiefang must accelerate the transition from single vehicle sales to whole-process, multi-dimensional value creation, replace ‘price competition’ with ‘innovation-driven,’ and lead the commercial vehicle industry towards high-quality development.”
Starting from July 1, the implementation of the new vehicle and vessel tax preferential policy and the rollout of the national commercial vehicle scrappage policy will bring fluctuations in industry demand. As FAW Jiefang’s General Manager and Deputy Secretary of the Party Committee Li Sheng anticipated for the market in the second half of the year, the medium and heavy truck market will show a trend of “continuously improving demand and alternating market opportunities.” He encouraged Jiefang’s marketing personnel to renew their thinking, forge ahead, and bravely advance to create a “customer-satisfied, commercially successful” Jiefang business.
