Investment Rating - The report maintains a "Positive" investment rating for the heavy truck industry [3] Core Viewpoints - The heavy truck industry continues to experience high prosperity driven by the vehicle replacement policy, with significant year-on-year growth in sales and exports [9][19][73] Summary by Sections Overall Performance - In October 2025, wholesale sales of heavy trucks reached 106,000 units, a year-on-year increase of 59.9% and a month-on-month increase of 0.6%. Registration sales were 70,000 units, up 57.0% year-on-year but down 15.9% month-on-month. Exports totaled 37,000 units, reflecting a year-on-year increase of 39.4% and a month-on-month increase of 13.9% [9][19][73]. Three Driving Forces 1. **Oil and Gas Price Differential**: The oil and gas price differential has decreased, with the price difference remaining around 3,000 yuan/ton throughout 2025. As of November 10, 2025, the price differential was 2,470.7 yuan, marking a low for the year [33][37]. 2. **New Energy Penetration**: The penetration rate of new energy heavy trucks continues to grow, with October 2025 registration sales reaching 20,000 units, a year-on-year increase of 156.7% [51][55]. 3. **Strong Demand in Asia and Africa**: Exports to Asia and Africa have seen robust demand, with heavy truck exports in October 2025 reaching 37,000 units, a year-on-year increase of 39.4% [73][76]. Inventory Management - Inventory levels are being effectively reduced, with both enterprise and channel inventories showing a downward trend. In October 2025, enterprise inventory decreased by 200 units, while channel inventory fell by 100 units [14]. Market Share and Sales by Major Companies - The top three heavy truck manufacturers in October 2025 were China National Heavy Duty Truck Group, FAW Group, and Dongfeng Motor Corporation, with wholesale sales of 28,000 units, 24,000 units, and 15,000 units respectively. Their market shares were 26.5%, 22.5%, and 14.0%, reflecting year-on-year increases [12][27]. Natural Gas Heavy Trucks - The registration volume of natural gas heavy trucks in October 2025 was 21,000 units, a year-on-year increase of 137.9%. The penetration rate for natural gas heavy trucks reached 30.1%, up 10.2 percentage points year-on-year [37][45]. New Energy Heavy Trucks - The penetration rate of new energy heavy trucks reached 28.3% in October 2025, with significant growth in sales of new energy tractors and dump trucks [51][55]. Export Performance - Heavy truck exports in October 2025 were 37,000 units, with Africa and Asia being the largest markets, accounting for 44.5% and 41.8% of total exports respectively [73][76].