Who Makes Sinotruk

Nov 27, 2024 | trucks

History and Founding about Sinotruk

China National Heavy Duty Truck Group Co., Ltd. (Sinotruk) has a long history dating back to 1935, when it was first established as Jinan Automobile Works during the Republic of China era. Over the years, the company has played an important role in the development of China’s heavy-duty truck industry.

Key Milestones in SINOTRUK’s History

  • 1953: The company was renamed Jinan Auto Repair and Parts Factory, after approval from the Ministry of Transport.
  • 1956: It became officially known as Jinan Auto Manufacturing Factory, marking a key step in China’s heavy-duty vehicle manufacturing.
  • 1960: A historic achievement occurred when the factory produced China’s first heavy-duty truck, the Yellow River JN150 8-ton truck, ending China’s reliance on foreign trucks. Chairman Mao Zedong personally inspected and praised the truck.
  • 1964: The company rebranded as Jinan Auto Manufacturing General Factory.
  • 1983: SINOTRUK introduced foreign technology from Austrian Steyr, which allowed the production of advanced heavy-duty trucks using Steyr 91 technology.
  • 1984: The company expanded and merged with several vehicle and parts manufacturers to produce Steyr heavy-duty trucks locally.
  • 1990: The company officially reorganized into China National Heavy Duty Truck Group, bringing various entities under one umbrella with approval from the State Council.
  • 2000: On July 25, the State Council decided to transfer the management of SINOTRUK to the Shandong Provincial Government.
  • 2001: SINOTRUK Group was restructured on January 18, starting a new chapter for the company.

Key Facts

  • First Heavy-Duty Truck Produced: The Yellow River JN150 8-ton truck in 1960.
  • Annual Output (2011): By 2011, SINOTRUK produced:
    • 150,000 complete vehicles
    • 130,000 engines
    • 140,000 gearboxes
    • 340,000 axles
    • 33,000 modified vehicles
  • Stock Listings: SINOTRUK (Hong Kong) Limited was listed on the Hong Kong Stock Exchange in 2007, and SINOTRUK Jinan Truck Co., Ltd. was listed on the Shenzhen Stock Exchange.
  • International Partnerships: The company formed important partnerships with international brands such as Austrian Steyr, Volvo Trucks, and German MAN AG, which led to the development of brands like Howo and Sitrak.
  • Global Presence: SINOTRUK now operates in countries like Brazil, Pakistan, and the Philippines, establishing itself as a key player in the global heavy-duty truck market.

Key Milestones

Sinotruk has made significant progress throughout its history, driving important changes in the heavy-duty truck industry. Here are some of the key milestones that define the company’s journey:

Early Years and Founding

  • 1930: Sinotruk began as Jinan Automobile Manufacturing General Factory, laying the groundwork for China’s heavy-duty vehicle industry.

Development of Heavy-Duty Trucks

  • 1960: Sinotruk created China’s first heavy-duty truck, the Huanghe JN150 8-ton truck. This vehicle received high praise from Chairman Mao Zedong. In 1966, Chairman Zhu De honored it by writing “Yellow River” in his own handwriting.

International Expansion and Technology Integration

  • 1983: The company adopted the Austrian Steyr Heavy Duty Vehicle Project, making it China’s first large-scale use of foreign heavy-duty truck technology.
  • 1984: Sinotruk formed a unified heavy-duty truck company by merging multiple manufacturers. This led to the successful production of STEYR heavy-duty trucks in the same year.

Formation of National Groups

  • 1990: The China National Heavy Duty Truck Group was established, consolidating Sinotruk and related businesses under state approval.

Restructuring and Global Expansion

  • 2001: The modern Sinotruk emerged after restructuring, with Ma Chunji appointed as president.
  • 2004: Sinotruk launched the HOWO brand. The first HOWO truck rolled off the production line in October 2004.
  • 2007: Sinotruk (Hong Kong) Limited was listed on the Hong Kong Stock Exchange, marking the first red chip stock from China’s manufacturing industry.
  • 2009: Sinotruk partnered with Germany’s MAN Company, boosting its expertise in capital, technology, and market reach.

Recent Achievements and Growth

  • 2013: The company introduced the SITRAK series, a joint effort with MAN, expanding its product lineup.
  • 2023: Sinotruk achieved major milestones, including an annual operating income of 173.1 billion yuan, sales of 335,000 vehicles, and a 47% growth in heavy truck exports, totaling 130,000 units.

Sinotruk (Hong Kong) Limited is a subsidiary of China National Heavy Duty Truck Group Co., Ltd. (Sinotruk Group or CNHTC), which is owned by the Shandong provincial government. Founded in 2007, the company acts as a holding entity within Sinotruk Group.

Ownership Breakdown

  • Sinotruk Group holds 64.9% of Sinotruk (Hong Kong) Limited’s shares, or 61.5% if the Over-allotment Option is exercised.
  • Public investors own about 31.9% of the shares, or 35% with the Over-allotment Option.
  • NSSF (National Social Security Fund) owns 3.2%, or 3.5% with the Over-allotment Option.

Key Shareholder Changes

  • In 2009, MAN, a German truck manufacturer, acquired a 25% + 1 share stake in Sinotruk (Hong Kong) Limited.

Subsidiaries and Joint Ventures

Sinotruk (Hong Kong) Limited owns several subsidiaries, including: – Sinotruk Jinan Truck Co., Ltd. – Sinotruk Jinan Commercial Truck Co., Ltd. – Sinotruk Jinan Power Co., Ltd.

Additionally, Jinan Hua Wo Truck Corporation, a joint venture with Volvo Truck Corporation, is 50% owned by independent third parties controlled by Volvo.

Leadership and Board Structure

The board of directors includes: – Mr. Wang Zhijian (Chairman) – Mr. Wang Chen (President) The board also includes both non-executive and independent directors who contribute to governance.

Subsidiaries and Brands of sinotruk

Sinotruk (Hong Kong) Limited owns several subsidiaries that play an important role in the company’s operations. These include Sinotruk Jinan Truck, Sinotruk Jinan Commercial Truck, and Sinotruk Jinan Power, among others. These subsidiaries are key to SINOTRUK’s production and distribution of commercial vehicles.

Sinotruk Brands

Sinotruk operates under several well-known brands, each targeting different segments of the commercial vehicle market:

  • HOWO: A popular brand known for a wide range of heavy-duty trucks, including dump trucks, tank trucks, vans, and silo trucks.
  • SITRAK: A high-end heavy truck brand launched in 2009 in collaboration with MAN from Germany. SITRAK offers trucks, construction vehicles, and special-purpose vehicles, known for their reliability, efficiency, comfort, and safety. SITRAK is sold in China and over 50 countries.
  • Yellow River: A significant commercial vehicle brand under Sinotruk.
  • Shanteka: Another subsidiary brand offering commercial vehicles within the Sinotruk family.

These brands help Sinotruk maintain a strong global presence and reputation for producing reliable and versatile commercial vehicles.

Products and Manufacturing of sinotruk

Diverse Product Range

Sinotruk designs, develops, produces, and sells a wide range of vehicles and components, including:
– Heavy-duty trucks: Built for long-haul and heavy-load operations.
– Medium-duty and light-duty trucks: Suitable for urban and regional transportation.
– Mining dump trucks and special-purpose vehicles: Designed for industries such as mining and construction.
– Buses: For public and private transportation.
– Automotive components: Engines, transmissions, axles, and other key parts.

Engine Technology

  • Advanced Engine Models: Sinotruk uses advanced technologies like Steyr and German MAN technology in engine production.
  • Performance and Emission Standards: The MC series engines offer power from 140 to 560 hp and meet Euro II to Euro VI emission standards.
  • Focus on Fuel Efficiency: About 80% of Sinotruk’s vehicles are equipped with fuel-efficient engines, offering better power and reduced emissions.

Transmission and Axles

  • Transmission Systems:
    • Sinotruk develops 5 to 16 gear light, medium, and heavy-duty transmissions, including AMT (Automated Manual Transmission).
    • The HW series heavy-duty transmission features a twin countershaft structure and planetary deceleration for added durability.
  • Axle Variants:
    • Single-stage reduction axles (MCY and H457 series) and double-stage reduction axles (ST/HC and AC series) support loads from 5 to 26 tons.
    • These axle technologies are based on German MAN and Steyr technologies.

Product Brands

Sinotruk offers a strong lineup of vehicle brands, including SITRAK, HOWO, HOWO T5G, HOWO T7H, HOWO A7, STEYR, and more. The SITRAK series, developed with independent technology, is known for its reliability and innovation.

Efficient Manufacturing

  • Flexible Production: Sinotruk’s modular product design system allows for various models to be produced on the same assembly line.
  • Streamlined Operations: Using its proprietary Truck Resource Planning (TRP) system, Sinotruk manages inventory, logistics, and production in real-time, completing production cycles within 7 to 15 days.

Automation and Quality Control

  • Robotic Automation: Paint shop robots, such as Dürr’s EcoProFleet AGVs, ensure consistent, high-quality finishes while maintaining production flexibility.
  • “No Fault Forward” Strategy: Manufacturing processes are continuously monitored, addressing any issues at each stage to maintain high-quality standards across production.

Market Presence and Sales

Sinotruk, the largest heavy-duty truck manufacturer in China, has made a significant impact in both domestic and international markets. The company’s sales and market share have grown year after year, strengthening its position as a global leader in the heavy-duty truck industry.

Domestic Market Sales

In 2022, Sinotruk sold 159,000 heavy trucks, capturing a 24% market share, the highest among Chinese heavy truck manufacturers. This achievement solidified its leadership in China’s heavy-duty truck sector. By the first quarter of 2023, Sinotruk had already sold 88,800 trucks, securing a 27.3% market share. By August 2024, the company reached 172,400 units in sales, with a market share of 27.6%.

The company continued to grow in 2023, with total vehicle sales reaching 335,000 units, of which 130,000 units were exported. This strong performance highlights Sinotruk’s solid presence and competitiveness in the heavy-duty truck market.

Export and International Market Performance

Sinotruk’s export strategy has played a key role in its global expansion. In 2022, the company exported 89,000 heavy-duty trucks, accounting for over 50% of China’s heavy truck exports. By 2023, Sinotruk had expanded to over 90 countries, including Southeast Asia, Africa, Central Asia, and the Middle East.

Despite global challenges, Sinotruk has maintained its market leadership. The company’s market share abroad rose to over 50% by the third quarter of 2023, with even higher growth expected in the coming years.

Market Segments and Dominance

Sinotruk has expanded its presence across multiple segments, establishing dominance in key areas. It leads in long-haul logistics, express delivery, hazardous chemical transport, muck truck sales, mixer trucks, and high-end special-purpose vehicles.

In 2023, Sinotruk’s total commercial vehicle sales exceeded 500,000 units, marking a 67% year-on-year increase. This growth reflects the company’s ability to adapt to changing market conditions while strengthening its position in various industries.

Research and Development at Sinotruk

Sinotruk shows its commitment to innovation through extensive Research and Development (R&D) efforts, which are key to its growth and leadership in the heavy-duty truck industry.

R&D Center and Facilities

Sinotruk’s R&D Center is one of China’s first national-level corporate technology centers. It is equipped with advanced testing labs certified by the China National Accreditation Committee for Laboratory (CNACL). These labs support the development of vehicles, engines, parts, materials, and technology. The center also has equipment for critical tests, such as vibration, strength, and engine performance evaluations, all meeting global standards.

National-Level R&D Institutions

In addition to its own R&D Center, Sinotruk hosts key national research institutions that enhance its technological strength: – The National Heavy Duty Vehicle Engineering and Technology Research Center, founded in 2009, drives innovation, testing, and the adoption of new technologies in China’s heavy-duty truck sector. – The National Heavy Duty Vehicle Quality Supervision, Inspection, and Testing Center specializes in high-level testing, including vibration and strength analysis, ensuring that Sinotruk’s products meet world-class performance and safety standards.

Investment in R&D and Patents

Sinotruk continually invests in R&D, attracting top talent and improving its competitiveness. The company holds the most patents in China’s automotive industry, confirming its role as an innovation leader.

Key Technologies and Products

Sinotruk’s R&D efforts have led to the development of several advanced products, including: – D10 and D12 Diesel Engines: These engines are among the most advanced in China, setting a performance benchmark in the heavy-duty truck industry. – T10 and T12 Gas Engines: Designed to meet the highest emission standards, these engines are part of Sinotruk’s commitment to environmental responsibility. – MC Series Engines (MC11, MC13, MC05, MC07): These internationally advanced engines meet Euro II-VI emission standards, improving fuel efficiency and reducing environmental impact.

Sinotruk also produces world-class single-reduction axles, wheel hub reduction axles, and 16.5-22.5 inch disc brakes, as well as a variety of transmissions.

Focus on New Energy Vehicles

Sinotruk leads the development of new energy vehicles, focusing on three main technologies: pure electric, fuel cell, and hybrid systems. These vehicles serve sectors such as ports, steel mills, municipal sanitation, and urban logistics. The company has also developed independent software and hardware systems for the electronic control systems of new energy vehicles, ensuring efficiency and sustainability.

The Sinotruk Science & Technology Mansion

To support its expanding R&D capabilities, Sinotruk opened its Science & Technology Mansion on August 16, 2015. Located in the Sinotruk Science & Technology Central Park, the building reflects the company’s growing technological strength and innovation drive.

Sinotruk’s R&D efforts continue to push technological boundaries, keeping the company a leader in both domestic and international heavy-duty truck markets.

https://www.youtube.com/watch?v=e28TDU1D2bU

With its rich history, strategic partnerships, and relentless focus on innovation, Sinotruk has firmly established itself as a global leader in the heavy-duty truck industry. As the company continues to expand its reach and embrace new technologies, its journey serves as a testament to China’s industrial strength and commitment to driving the future of transportation.