Core Insights - On July 13, 2023, FAW Jiefang Automotive Co., Ltd. launched four smart power domain products, marking significant technological breakthroughs in traditional fuel, new energy, and hydrogen power sectors [1][6]. Group 1: Product Development - The powertrain development of FAW Jiefang can be divided into three stages, with the current focus on creating a smart power domain that aligns with industry trends towards high intelligence, reliability, and low cost [5]. - The newly launched smart power domain is an integrated solution that includes engines, transmissions, drive axles, and intelligent control software [6]. Group 2: New Energy Solutions - FAW Jiefang has established a comprehensive layout for new energy power domain products, including pure electric, hybrid, and hydrogen platforms, with the EE270 product achieving a system efficiency of 92% [6]. - The company has developed full-chain autonomous production capabilities for electric drive and battery systems, along with innovative detection systems for manufacturing quality [6]. Group 3: Market Strategy - FAW Jiefang aims to achieve a revenue target in the billions by transitioning from traditional manufacturing to a "service + green ecosystem" model [6]. - The company has built a high-end customer network covering domestic logistics enterprises and overseas markets, evidenced by partnerships with major companies like TWT and Debang Logistics [7]. Group 4: Corporate Vision - The leadership emphasizes the commitment to building a strong national automotive brand and contributing to the high-quality development of China's automotive industry [7].

Core Insights - FAW Jiefang has launched four smart power domain products, marking significant breakthroughs in traditional fuel, new energy, and hydrogen power technologies [1][2] - The company aims to enhance its powertrain systems, which are crucial for commercial vehicle performance, through a self-research and development approach [1] - FAW Jiefang's smart power domain integrates engine, transmission, drive axle, and intelligent control software into a comprehensive solution [2] Development Stages - The development of FAW Jiefang's powertrain can be divided into three stages: 1. The first stage introduced the Aowei 6DL1 engine, marking the entry into the electronic control era 2. The second stage featured the Aowei 6DM2 engine, achieving fuel efficiency improvements 3. The current third stage focuses on creating a smart power domain to meet industry trends towards high intelligence, reliability, and low cost [1] New Energy Solutions - FAW Jiefang has established a comprehensive layout for new energy power domain products, including pure electric, hybrid, and hydrogen platforms - The EE270 product, part of the pure electric E platform, boasts a system efficiency of 92% and can operate effectively in extreme cold conditions [2] Production Capabilities - The company has developed full-chain autonomous production capabilities for electric drive and battery systems, along with innovative detection and quality assessment systems [2] Market Strategy - FAW Jiefang is focusing on high-end, green, and intelligent development, aiming for a revenue target in the billions and transitioning from traditional manufacturing to a "service + green ecosystem" model [2] Ecosystem and Partnerships - The company is restructuring its aftermarket ecosystem through a digital intelligent platform, enhancing supply, technical support, and channel sharing [3] - FAW Jiefang has established partnerships with major companies like CATL to provide comprehensive new energy solutions [2][3] Customer Network - The company has built a high-end customer network covering core logistics enterprises domestically and internationally, evidenced by partnerships with companies like TWT and Debang Logistics [3] Commitment to National Goals - FAW Jiefang is committed to establishing a strong national automotive brand, focusing on core technology, excellent products, and exceptional service to contribute to the growth of China's automotive industry [3]

一汽解放J7智能工厂。 记者 田甜 摄 一汽解放动力总成长春工厂 一汽解放最新发布的智慧动力域产品 ◎记者 田甜 "我们卷价值、卷质量、卷产品、卷技术，但绝不卷价格。"在近日召开的一汽解放2025年中媒体交流会 上，公司多位高管表示，在商用车市场竞争白热化的当下，面对传统企业存量博弈与新玩家跨界入局带 来的变量，一汽解放上半年在品牌价值、市场份额等领域以八项"行业第一"巩固领航地位，并明确 以"不卷价格卷价值"的定力应对行业竞争。 "拿短期冠军不难，但更重要的是关注长期主义。"在一汽解放董事长李胜看来，企业的核心竞争力不在 于短期销量波动，而在于长期主义下的质量根基、技术突破与生态协同。作为1953年建厂、志在成 为"百年老店"的企业，不能为短期销量目标盲目冲量、在供应链一味压价，还要考虑渠道的承受能力， 兼顾产业责任与社会责任，才是可持续发展的根本保障。 "我们深入研究品牌本质，发现质量与品牌如影相随。真正的名牌、好车必然以质量为基石，无论产品 定位高端、中端还是低端，质量始终是第一位的。"在李胜看来，质量是品牌的生命线，无论市场销 量、行业排名如何，打造过硬产品才是根本。 为此，一汽解放将质量提升作为"一 ...

Group 1 - The stock price of FAW Jiefang is reported at 7.12 yuan as of July 30, 2025, with a slight decrease of 0.01 yuan, representing a drop of 0.14% from the previous trading day [1] - FAW Jiefang is a leading enterprise in the commercial vehicle industry in China, specializing in the research, production, and sales of commercial vehicles and core components, including heavy trucks, medium trucks, and light trucks [1] - The company holds a dominant market share, with a terminal market share of 23.2% in the domestic medium and heavy truck market for the first half of the year, maintaining its position as the industry leader [1] Group 2 - FAW Jiefang has accelerated its transition to new energy vehicles, achieving a continuous doubling of sales for three consecutive years [1] - The company is expanding its overseas presence with the establishment of eight wholly-owned subsidiaries, maintaining a leading market share in key markets such as South Africa [1] - FAW Jiefang has signed a strategic cooperation agreement with Telai Electric, collaborating with CATL and the State Grid to develop a charging network [1]

Core Viewpoint - In the first half of the year, FAW Jiefang maintained its leading position in the domestic medium and heavy truck market with a market share of 23.2%, emphasizing a commitment to quality, technological innovation, and ecological collaboration to address industry challenges and pursue long-term growth [1][2]. Group 1: Strategic Response to Market Challenges - FAW Jiefang is facing operational pressures in the commercial vehicle industry but remains focused on strategic stability, emphasizing the potential for growth despite competition from new entrants like Great Wall and BYD [2]. - The company is implementing a three-year quality improvement project, resulting in a 30.3% year-on-year reduction in external quality losses and a 26% decrease in after-sales claims frequency within three months [2]. - FAW Jiefang is enhancing its core technology capabilities by focusing on independent research and development of key powertrain components, creating a unique competitive edge through a collaborative innovation system [2]. Group 2: Value Orientation and Market Stability - The company refuses to engage in price wars, maintaining its market share while focusing on brand value and long-term competitiveness [3]. - FAW Jiefang has implemented a price increase strategy across its entire model range to protect brand value and second-hand vehicle retention rates, despite short-term sales impacts [3]. - The company is leveraging big data from its vehicle networking platform to optimize operational fuel consumption and enhance after-market services, offering original parts at a 30% lower price than installed components [3]. Group 3: Long-term Vision and Ecosystem Collaboration - FAW Jiefang is accelerating global R&D and talent acquisition, establishing a "four countries, nine locations" R&D network to enhance local adaptability and focus on new technologies [4]. - The company plans to launch new products in the second half of the year, including upgrades to traditional vehicles and smart vehicle products [4]. - FAW Jiefang is restructuring its marketing system to a user co-creation model and has formed strategic partnerships to enhance the development of new energy commercial vehicles and charging networks [5].

Core Insights - The commercial vehicle industry is undergoing a transformation, with FAW Jiefang leading the charge through quality improvements and ecological collaboration [1][3][5] - FAW Jiefang has achieved significant market leadership, holding the top market shares in various segments, including 23.2% in the medium and heavy truck market and 28.3% in the cargo truck market [1][5][12] - The company emphasizes quality over sales volume, launching a "three-year quality campaign" that has already shown a 30% reduction in quality-related issues [8][9][11] Group 1: Market Position and Strategy - FAW Jiefang's brand value reached 145.03 billion, maintaining its position as the leading commercial vehicle brand for 14 consecutive years [1] - The company views the entry of new players into the commercial vehicle market as a sign of opportunity rather than a threat, reinforcing its confidence in maintaining a leading position [3][5] - FAW Jiefang is committed to not participating in price wars, focusing instead on the long-term value of its products [6][9] Group 2: Quality and Innovation - The company has initiated a comprehensive quality improvement strategy, targeting enhancements in product design, manufacturing, and service reliability [8][9][11] - FAW Jiefang's focus on core technologies, such as engines and drivetrains, is seen as a key competitive advantage [5][6] - The company has reported a 30.3% decrease in external quality losses and a 26% reduction in claims frequency, indicating significant progress in quality management [11] Group 3: New Energy and International Expansion - FAW Jiefang is actively expanding its presence in overseas markets, targeting regions such as Southeast Asia and the Middle East, with plans to establish eight wholly-owned subsidiaries [12][14] - The company has successfully transitioned to new energy vehicles, achieving a market share of 14.5% in the new energy medium and heavy truck segment, the highest in the industry [14] - FAW Jiefang's long-term strategy focuses on sustainable development, emphasizing quality, technology, and product value while avoiding price competition [14]

Group 1 - In July, major manufacturers such as FAW Jiefang, China National Heavy Duty Truck Group, XCMG, and Skyworth are actively advancing in the new energy sector, while Foton and JAC are expanding their presence in overseas markets, showcasing a diverse order landscape [1] - FAW Jiefang launched a new energy feed truck, signing a strategic cooperation agreement for the first batch of 139 vehicles, focusing on zero emissions, low costs, and high attendance in transportation solutions [2][4] - China National Heavy Duty Truck Group delivered 200 units of the V7-X new energy heavy truck and signed a strategic cooperation agreement for an additional 100 vehicles and charging stations, marking a significant collaboration [5] - Dongfeng Commercial Vehicle delivered 100 units of the Dongfeng cargo truck equipped with the Dragon Power 3.0 efficient smart power chain, enhancing operational efficiency for logistics partners [9][11] - Foton delivered 150 units of the AUMAN R tractor to a strategic client in Ghana, marking a major breakthrough in the African market with a 5% fuel efficiency improvement over similar products [12][15] - XCMG delivered 200 units of new energy heavy trucks, achieving a 160% year-on-year sales growth in the first half of the year, leading the market in various segments [17][19] - JAC delivered 50 garbage collection vehicles to Almaty, Kazakhstan, and over 100 JAC K7 intelligent heavy trucks to SF Express, enhancing the company's international and domestic order performance [20][22] - DeepWay signed a dealership agreement for intelligent new energy heavy trucks in New Zealand, marking a key step in expanding into the Southern Hemisphere market [23][24] - Skyworth signed a strategic cooperation agreement for 500 new energy heavy trucks and delivered the first 100 units, demonstrating its technical strength and commitment to green logistics [26][27] Group 2 - The order trends in July predominantly focused on new energy and overseas business, indicating a shift in product promotion and brand awareness among major manufacturers, while traditional energy sectors saw fewer significant orders [29]

Core Viewpoint - The commercial vehicle industry is experiencing intensified competition, with both traditional players and new entrants like BYD and Geely recognizing the sector's potential, as highlighted by the chairman of FAW Jiefang, Li Sheng [1] Group 1: Company Performance - FAW Jiefang achieved eight industry-leading performances in the first half of the year, including being ranked first in brand value for 14 consecutive years and holding the largest market share in the domestic heavy-duty truck market [1] - The company aims to explore sustainable development through multiple initiatives, including enhancing quality, breaking through core technologies, and expanding globally [1] Group 2: Quality Improvement - The company has initiated a quality improvement campaign led by Li Sheng, with a target to reduce quality issues by 30% annually, aiming for a total reduction of 65% in three years [2] - FAW Jiefang has implemented comprehensive quality control across all processes, from design to service, embedding "quality first" into its corporate culture [2] - The powertrain division has undergone reforms to enhance control over key components, with the 15L6SV3 natural gas engine demonstrating industry-leading fuel consumption [2] Group 3: New Energy Transition - The transition to new energy vehicles is seen as crucial for breaking growth bottlenecks, with the company targeting to lead in new energy sales for heavy-duty trucks this year [3] - FAW Jiefang has established a sustainable business model through partnerships for charging networks and battery swapping technology, addressing the challenges of new energy commercial vehicles [3] - The company is committed to continuous product innovation, with plans for the J7 series and new global products set to launch in the coming years [3] Group 4: Global Expansion - FAW Jiefang is shifting its global strategy from trade exports to localized operations, with expectations that overseas sales will match domestic sales within five years [4] - The company has already established four overseas subsidiaries and plans to complete eight by the end of the year, with a factory in Uzbekistan now operational [4] - FAW Jiefang's overseas sales (excluding Russia) increased by 60% in the first half of the year [4] Group 5: Pricing Strategy - In response to market price competition, FAW Jiefang has chosen to focus on value rather than price, maintaining stable pricing despite industry-wide price cuts [4][5] - The company has implemented mechanisms to balance dealer interests and prevent price dumping, while also introducing differentiated products to avoid price wars [5] Group 6: Ecosystem Collaboration - FAW Jiefang is enhancing its ecosystem through collaborations that provide added value to customers, such as free vehicle inspections and maintenance reminders during charging [5] - The company is developing a comprehensive service system covering the entire lifecycle of vehicles, ensuring customers have a seamless experience from purchase to resale [5][6] Group 7: Long-term Strategy - FAW Jiefang is adopting a steady approach to navigate industry changes, emphasizing long-term competitiveness over short-term sales fluctuations [6]

Core Viewpoint - The launch of the 2026 model of the Bestune Mini EV by China FAW marks a significant upgrade in features and pricing, aiming to redefine the benchmark for affordable electric vehicles in the market [1][25]. Pricing and Configuration - The 2026 Bestune Mini EV is available in five configurations, with a price range from 34,900 to 45,900 yuan, and offers a long range of 222 km as standard across all models [1][19]. Product Upgrades - The new model features 12 upgrades focusing on aesthetics, intelligence, and safety, enhancing the overall user experience [1][4]. Aesthetic Enhancements - The vehicle introduces a new "Snow Cherry Pink" color and a pearl-like paint finish, along with a new "Cocoa Brown" interior color, catering to the aesthetic preferences of younger consumers [7][4]. User Experience Improvements - The 2026 model includes a seamless start function, allowing users to start the vehicle using their smartphones without complex operations, enhancing the driving experience [11][4]. Entertainment Features - The vehicle supports OTA updates, providing users with access to new features, a database for children's storybooks, arcade games, and over 300,000 selected applications, making travel more enjoyable [12][4]. Safety Features - New features include a crawling mode for precise speed control in traffic and an automatic recording function for critical driving moments, enhancing safety during commutes [14][4]. Smart Technology - The introduction of a Bluetooth key allows users to unlock the vehicle and share driving permissions via a mobile app, promoting convenience [15][4]. Service and Warranty - The vehicle comes with a comprehensive service plan, including lifetime warranty for the vehicle and battery, roadside assistance, and maintenance plans, ensuring peace of mind for users [19][25]. Market Performance - Since its launch, the Bestune Mini EV has delivered over 119,000 units, ranking among the top three in its market segment, indicating strong consumer demand [19][25]. User Engagement - The company has engaged with its user base, revealing that 72% of its "Mini Friends" already own vehicles from premium brands, and has launched a loyalty program to reward its customers [20][25].

Investment Rating - The industry investment rating is "Overweight," indicating an expected outperformance of the industry index relative to the benchmark by more than 5% over the next six months [62]. Core Views - June sales figures for the heavy truck industry exceeded expectations, with production, wholesale, and export volumes all showing positive growth [5][7]. - The market structure indicates a recovery in domestic sales for Foton, while Jiefang and Dongfeng saw an increase in export market share [6][39]. - The heavy truck segment is experiencing a significant increase in new energy vehicles, while natural gas truck sales are declining [7][28]. Summary by Sections Sales Tracking - In June, wholesale sales of heavy trucks reached 98,000 units, with year-on-year growth of 37.1% and month-on-month growth of 10.2%, surpassing expectations [4][19]. - Terminal sales for June were 69,000 units, showing a year-on-year increase of 47.0% and a month-on-month increase of 9.7%, also exceeding expectations [4][15]. - Export sales in June were 29,000 units, with year-on-year growth of 23.8% and month-on-month growth of 10.5%, again surpassing expectations [4][19]. - The current total industry inventory stands at 144,000 units, with a slight decrease in channel inventory [20]. Market Structure Tracking - The market share for heavy truck manufacturers in June was as follows: Jiefang 19.8%, Dongfeng 21.1%, Heavy Truck 16.9%, Shaanxi Heavy Truck 11.1%, and Foton 13.4% [6][37]. - In the export market, the shares were: Jiefang 17.2%, Dongfeng 13.3%, Heavy Truck 42.7%, Shaanxi Heavy Truck 15.5%, and Foton 7.3% [6][39]. - The penetration rate for new energy heavy trucks reached 25.9%, with a significant year-on-year increase of 159% in sales [7][28]. Engine Market Structure - Weichai maintained the largest market share in the engine segment at 17.9%, although it saw a decline compared to previous periods [8][48]. - The market shares for natural gas engines were reported as follows: Weichai 49.0%, Cummins 19.6%, and others [55]. Investment Recommendations - The report recommends focusing on companies such as China National Heavy Duty Truck Group and Weichai Power, highlighting the potential for performance improvement in FAW Jiefang and Foton [57].