Chinese Truck Maker Hanma Technology to Stop Producing Fuel Vehicles in 2025

Oct 19, 2023

Since 2022, many automobile manufacturers have announced that they will stop production of fuel vehicles, including BYD and Great Wall Motor's ChangZheng Automobile, all of which will turn their focus to new energy vehicles. On September 7, Hanma Technology, which focuses on the manufacturing of heavy-duty trucks, reiterated that it would cease its production of fuel vehicles in 2025 and instead enter the field of new energy heavy-duty trucks.

In a Q&A session with investors, the company's representative said that it will stop the production of traditional fuel vehicles in December 2025. The company will then focus on new energy and clean energy vehicles such as pure electric, methanol power, hybrid power and hydrogen fuel vehicles.

The company stated that it will continue to produce traditional fuel vehicle up until December 2025 before refocusing its efforts. At the same time, the company will continue to produce parts and supplies for traditional fuel vehicles, and provide an after-sales service guarantees for existing customers of traditional fuel vehicles.

According to public information, Hanma Technology is a holding subsidiary of Geely New Energy Commercial Vehicle Group, and was previously named Hualing Xingma Automobile. Founded in 1970, the company entered the special vehicle industry in 1979 and became a holding subsidiary of Geely in 2020. It has four business sections: complete vehicles, special vehicles, powertrains and auto parts. Its registered capital is 650 million yuan ($93.5 million).

SEE ALSO: China's New Energy Vehicle Market Sees Strong Rebound amid Robust Car Incentives

In June this year, the company made a decision to transition to a focus on new energy vehicles rather than traditional fuel-powered vehicles. According to the company's data, in August 2022, the company manufactured 259 medium and heavy-duty trucks, a year-on-year decrease of 57.89%, among which there were 123 new energy medium and heavy-duty trucks, a year-on-year increase of 101.64%. The company's sales volume of heavy-duty trucks was 234 units, down 24.52% year-on-year, including 125 new energy medium and heavy-duty trucks, up 89.39% year-on-year.

Earlier, Hanma Technology said that the proportion of its new energy business is increasing, and the transformation outcomes has become greater. The company is planning to achieve sales of nearly 7,500 new energy heavy-duty trucks in 2022, an increase of 80% year-on-year.

According to the statistics of Shenzhen Gaogong Industry Research Co., Ltd. (GGII), a professional market research organization, the sales volume of new energy heavy-duty trucks in China in the first half of 2022 was 10,123 vehicles, up 498% year-on-year, accounting for 2.6% of the total heavy-duty truck market share. It is expected to continue to maintain this stellar growth in the second half of the year while the total annual sales volume is expected to approach 30,000 vehicles.

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