China’s Zhangxue Motorcycles team emerged as a dark horse in the 2026 FIM Super-bike World Championship (WSBK) Portuguese Round last month with its independently developed 820RR-RS race machine clinching back-to-back victories in both World SSP class races, dominating the field by 3.685 seconds.

This triumph marked the first-ever championship title for a Chinese motorcycle brand in this premier competition and also shattered the 29-year monopoly held by European, American, and Japanese manufacturers since the class’s inception in 1997.

Observers noted that this outcome demonstrates the rapid growth and technological breakthroughs of China’s motorcycle industry.

Some industry insiders believe that this breakthrough shattered the long-standing monopoly of European, American, and Japanese brands in this competition, and also signals that China’s motorcycle industry now can compete head-to-head with the world’s premier brands.

Source: CNMO     Read The Article

PSR Analysis. The Zhangxue Motorcycles’ championship victory at the 2026 WSBK Portuguese Round carries a profound impact for China’s motorcycle industry. In the domestic market, this triumph has thoroughly shattered the longstanding “low-end OEM” stereotype, proving the technical credibility of high-end Chinese motorcycles through a commanding 3.685-second victory over century-old marques such as Ducati and Yamaha.

Core technologies reflected in this championship—particularly the independently developed 819cc inline-three engines will drive technical advancement in medium-to-large displacement. Domestic manufacturers now can move from price wars and aim at capturing space in the 300-800cc mid-to-high-end market. Racing success will narrow the technical gap with international brands and attract young talent.

Zhangxue’s victory marks an important inflection point in China’s globalization strategy. The racing achievement provides a key technical endorsement for “Made in China,” significantly lowering barriers in developed markets and enabling Chinese brands to enter high-value markets as “technical competitors” rather than “cost-effective alternatives.”

In Southeast Asia, Latin America, the Middle East and other markets, Chinese manufacturers will be able to establish differentiated advantages through performance credentials, shifting away from low-price strategies. At a deeper level, this signifies global industrial discourse power reconstruction: China is transitioning from “world’s factory” to innovation hub capable of original technology output, resonating with breakthroughs in electric vehicles and humanoid robots to collectively reshape “Made in China’s” global image. China is positioned to become a critical node in global racing-grade supply chains and participate in international standard formulation.

These shifting dynamics may pressure Japanese giants such as Honda and Yamaha, forcing technology transfer or pricing adjustments, while potentially prompting European brands to respond through cooperation or acquisition.

Looking ahead five years, domestic market share for Chinese medium-to-large displacement models is expected to surge from 35% to over 50%, while export structure will shift from predominantly sub-125cc products to having 300-800cc mid-to-high-end products account for over 30%.

Zhangxue’s championship represents a brand victory and signals that “Made in China” has entered a new development stage in global high-end consumer goods markets.  PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

BYD has launched its second-generation Blade Battery and Flash Charging Technology—yet another disruptive technology milestone in new energy vehicle history—officially ushering the industry into the “Flash Charging Era.”

The second-generation Blade Battery achieves breakthroughs across multiple dimensions, delivering ultra-fast charging performance: it can charge from 10% to 70% in just 5 minutes and from 10% to 97% in only 9 minutes at normal temperature, while even in extreme cold conditions of -30°C, it takes merely 12 minutes to charge from 20% to 97%—just 3 minutes longer than at room temperature.

On the strategic front, BYD has launched the “Flash Charging China” initiative, with plans to establish 20,000 flash charging stations by the end of 2026, including 2,000 highway flash charging stations, while partnering with operators to build an additional 18,000 cooperative flash charging stations. In terms of mass production rollout, the technology will debut in the first batch of 10 models including the Yangwang U8 2026 Edition, Datang, and Song Ultra EV, with flash charging technology cascading down to mainstream 150,000 yuan-class vehicles within the year; first-batch vehicle owners will be entitled to one year of complimentary flash charging privileges.

Source: Sina Finance     Read The Article

PSR Analysis. The launch of BYD’s second-generation Blade Battery marks a new phase of “technological ecosystem” competition in China’s power battery industry. For CATL, this impact presents a characteristic of “controllable in the short term, intensifying in the long term.”

In the near term, CATL can maintain its global leadership position through its 70.9% domestic market share in ternary lithium batteries, an international client network covering Tesla and German luxury brands, and technological reserves for mass production of solid-state batteries by 2027.

BYD’s flash charging technology primarily targets the LFP battery segment, while CATL has constructed a defensive system through a tiered technology roadmap spanning LFP, lithium manganese iron phosphate, and solid-state batteries.

However, in the long run, if BYD successfully cascades flash charging technology down to mainstream 150,000-yuan-class vehicles and opens battery supply to third parties, it could divert 10-15% of CATL’s LFP orders. More critically, if BYD’s “vehicle-pile-network” ecosystem closed-loop forms network effects, it may redefine industry competition rules—shifting from single battery performance comparison to full-chain charging experience competition. This will force CATL to transform from a “battery supplier” to an “energy solution provider,” with its high-margin model facing sustained compression.

The impact on BYD itself and China’s electric vehicle market could be even more profound. On the sales front, the promise of “5 minutes charging for 400 kilometers range” reduces range anxiety, and is expected to drive BYD’s pure electric vehicle sales growth of 40-50% in 2026, pushing its pure electric ratio from 40% to 60%, optimizing product structure and improving per-vehicle profitability.

On the market structure front, flash charging technology could accelerate the substitution of fuel vehicles in the above-200,000-yuan market and may trigger technological lag among second-tier battery manufacturers. Although industry CR2 concentration is declining, technological differentiation is intensifying, with the market bifurcating into “flash charging high-end” and “slow charging low-end” poles.

On the export front, opportunities and challenges coexist: on one hand, flash charging technology becomes the second global calling card for Chinese electric vehicles following “safety,” assisting brands like Yangwang and Denza to break into the European high-end market.

On the other hand, overseas flash charging station construction progress, European and American technical trade barriers, and supply chain localization pressures constitute major constraints. Overall, the second-generation Blade Battery propels China’s electric vehicle competition from the conclusion of the “electrification first half” toward the “intelligentization + flash charging second half.”

BYD’s success depends on the triple game of flash charging network construction speed, third-party supply breakthrough progress, and solid-state battery technological counter-attack rhythm during 2026-2027.   PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

Canada has agreed to allow a maximum of 49,000 Chinese-made electric vehicles to enter the Canadian market annually at a most-favored-nation tariff rate of 6.1%.

This policy marks Canada’s termination of the 100% additional tariff measure on Chinese electric vehicles that had been in effect since October 2024, shifting instead to a tariff-rate quota system. Carney stated that this move aims to restore normalized levels prior to trade friction, with the relevant volume accounting for less than 3% of Canada’s new vehicle market sales.

High tariffs had caused electric vehicle prices to soar and limited options in the Canadian market. According to Statistics Canada data, new registrations of zero-emission vehicles declined significantly in the third quarter of 2025. This tariff adjustment is expected to bring more affordably priced electric vehicle models to Canadian consumers. It is projected that within five years, over 50% of Chinese electric vehicles imported to Canada will be priced below CAD 35,000 ($25,300 USD), offering consumers low-cost alternatives. Meanwhile, Canada expects that within three years, the agreement will drive Chinese enterprises to establish joint ventures in Canada, promote the development of the domestic electric vehicle supply chain, and create employment opportunities for Canada’s automotive manufacturing industry.

Source: ACT      Read The Article

PSR Analysis: Canada’s dramatic reduction of electric vehicle tariffs from 106.1% to 6.1% signifies a critical breakthrough for China’s new energy vehicle industry in breaking Western trade barriers and expanding global markets. This policy pivot not only ends the 100% additional tariff imposed since October 2024 but also establishes a clear, predictable pathway for export growth through a tariff-rate quota system. The sharp drop in marginal costs directly translates into end-price advantages: for instance, the BYD Seal’s price could fall from CAD 80,000 to approximately CAD 50,000—a 40% reduction—precisely targeting the affordable market segment below CAD 35,000.

The agreement mandates that within five years, over 50% of Chinese EVs imported to Canada must be priced under CAD 35,000, a hard constraint that will compel Chinese companies to deeply leverage economies of scale and supply chain integration, further consolidating their core “high cost-performance” competitive edge.

Although the first-year quota is only 49,000 units—less than 3% of Canada’s new car market—industry analysis predicts Chinese automakers could capture roughly 10% of Canada’s EV market share, far exceeding the quota and underscoring both market potential and competitiveness.

More strategically, the agreement explicitly promotes Chinese enterprises to establish joint ventures in Canada within three years. This dual “technology + capital” overseas expansion model mirrors BYD and CATL’s capacity deployment in Hungary and Thailand, aiming to circumvent future trade policy risks through localized production.

Moreover, with Canada’s abundant lithium and nickel resources, the joint venture model can create a vertically integrated “resources-manufacturing-market” enhancing global supply chain resilience while deeply binding China’s industrial advantages with Canada’s resource strengths. This creates mutually beneficial strategic synergies and opens a new paradigm for the globalization of China’s new energy vehicle industry.   PSR

Jack Hao, Senior Research Manager – China represents Power Systems Research

Heli Industrial Vehicles (Thailand) Co., Ltd.’s broke ground for its industrial vehicle assembly and lithium battery pack production factory at the Navaan Nong Khuang Industrial Park in Chonburi Province, Thailand Nov. 27, 2025.

To consolidate and expand its leading position in the global market, actively advance its global strategic layout, and build a global production and supply system, Anhui Heli Co., Ltd. has established a strategic partnership with Siam Motors Parts Co., Ltd., a local Thai enterprise, to jointly establish Heli Industrial Vehicles (Thailand) Co., Ltd.

Through this joint venture, the two parties will co-invest in building a new manufacturing base in Thailand, creating an integrated production and sales platform for industrial vehicle complete machines and lithium battery systems.

The project covers a land area of approximately 84,330 square meters, with a total construction area of 50,550 square meters, and a total investment of approximately RMB 425 million (approximately USD 60 million).

The complex includes production facilities, an office building, and supporting infrastructure, equipped with intelligent production lines. Upon full operation, the factory’s annual production capacity will reach 10,000 forklifts and 10,000 lithium battery packs.

Source: ccm-1     Read The Article

PSR Analysis: The product strategy focuses on localization adaptation and technological innovation. It involves developing rust-resistant and corrosion-proof forklift enclosures and battery protection systems tailored to the hot and rainy climate, launching 1-3 ton new energy forklifts to meet the lightweight demands of industries like electronics and textiles, and simultaneously developing low-cost lithium battery solutions to reduce customers’ initial investment.

It also incorporates IoT technology for remote monitoring and fault alerts, introduces autonomous forklifts to cater to e-commerce and port automation scenarios, and obtains new energy certifications from various Southeast Asian countries.

The strategy adopts a dual-driven approach of direct sales and distribution, establishing regional sales centers in Thailand, Vietnam, and Indonesia to provide rapid response services. It leverages new energy subsidy policies in Southeast Asia (such as Thailand’s EV 3.0 and Indonesia’s tax incentives) to help customers reduce procurement costs, launches a “trade-in” program to phase out highly polluting diesel forklifts, and collaborates with local banks to offer low-interest loans and installment plans, innovating battery leasing services charged on a usage basis.

At the strategic level of competition, Heli will leverage differentiated products and a rapid response mechanism to compete with Japanese and Korean brands. Targeting Japanese brands such as Toyota and Mitsubishi in Southeast Asia, Heli will introduce competitive cost-effective new energy forklifts to capture the mid-range market, emphasizing the localization advantages of “Chinese technology + Thailand manufacturing” to reduce tariffs and logistics costs.

Simultaneously, to counter price wars, Heli will collaborate with local Southeast Asian enterprises (such as Siam Motors in Thailand) through technology transfer or joint venture models, adopting a flexible pricing strategy of “basic models + optional modules” to help penetrate the market.

The company also plans to establish a localized supply chain in Thailand (covering core components like batteries and motors) to reduce geopolitical risks and it plans to form long-term partnerships with raw material suppliers in Southeast Asia to ensure supply stability.

Additionally, it will use RMB-THB dual-currency settlement to hedge against exchange rate fluctuations and closely monitor trade policy changes across countries to dynamically adjust strategies.

The plan will be implemented in three phases: in the short term, focus on the Thai and Vietnamese markets to quickly establish reference customers and build a strong reputation; in the medium term, expand into Indonesia and Malaysia to refine the distribution network and service capabilities; and in the long term, strive to become the market leader in Southeast Asia and extend its influence to India and the Middle East, ultimately achieving the dual goals of rapidly capturing the market and accumulating global expansion experience.   PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

On Nov. 4, 2025, Lingong Heavy Machinery’s Brazilian subsidiary, LGMG Machinery Brazil Ltda., promoted its globalization strategy in the South American market with the celebration of its plant in Indaiatuba, São Paulo State, Brazil. This move signifies a deepening of Lingong Heavy Machinery’s South American expansion and marks an important milestone in China’s industrial advancement.

The establishment of the Brazilian subsidiary carries multiple strategic advantages for Lingong Heavy Machinery, providing a robust platform for serving local Brazilian customers through localized operations. It addresses customer needs with customized solutions and develops confidence in Brazilian customers by ensuring product supply stability through a localized spare parts warehouse, improving after-sales service, and enhancing technical support.

Simultaneously, capitalizing on Brazil’s geographical advantages, Lingong Heavy Machinery is well-positioned to expand into neighboring South American markets in the future, leveraging Brazil’s superior location and convenient transportation links to facilitate the extension of products and services to other countries in the region, laying a solid foundation for further South American business expansion.

Source: Finance Sina     Read The Article

PSR Analysis. The establishment of Chinese construction machinery companies in Brazil marks a pivotal strategic milestone in their global expansion. It deepens the economic and trade cooperation between China and Brazil and leverages Brazil’s role as a regional gateway for China to penetrate the broader Latin American market.

From an international political standpoint, this move strengthens bilateral trust, with companies like XCMG and Zoomlion integrating Chinese technological standards into Brazil’s industrial policies through a model that combines investment, job creation, and technology sharing.

This approach positions Chinese engineering machinery as a tangible symbol of cooperation, facilitating future participation in large-scale national projects such as Brazil’s “New Industrial Plan.” Economically, Latin America’s infrastructure gap, estimated at 3.5% of its GDP, drives demand for construction and mining equipment, while Chinese firms enhance supply chain efficiency through localization.

For instance, XCMG’s Brazilian base boasts an annual capacity of over 10,000 units, enabling rapid responses to Brazil’s “Mining 4.0 Plan.” Zoomlion’s localized R&D reduces equipment failure rates in high-altitude conditions by 40%, and Lingong Heavy Machinery’s local spare parts warehouses cut maintenance response times from 72 hours to 24 hours.

This “Made in Brazil, Serving the Region” model has helped Chinese brands gain a 12-percentage-point increase in market share in countries like Peru and Chile within three years.

In terms of market trends, Brazil’s engineering sector is evolving toward high-end and green solutions, with Chinese companies tailoring their product portfolios to meet these demands. Chinese-made excavators now account for 50% of Brazil’s imports, and XCMG’s adoption of 5G autonomous driving technology in its Brazilian factory has enabled zero-emission operations in Vale’s mines.

Zoomlion’s comprehensive service center in Betim has reduced customers’ total lifecycle equipment costs by 18%, while Chinese brands’ share of Brazil’s high-end market surged from 15% in 2018 to 31% in 2025.

For Chinese firms, the Brazilian experience signifies a transformative shift from “going out” to “going deep,” encompassing value chain upgrades (e.g., XCMG’s local bank offering financial services), standard exports (Zoomlion’s initiatives boosting local digitalization by 25%), and cultural integration (Lingong’s “China-Brazil Joint Innovation Center” training over 200 local engineers). As a result, Chinese construction machinery’s brand recognition in Latin America climbed from 37% in 2015 to 68% in 2025.

Looking ahead, the success of this model offers strategic lessons: it mitigates political risks through participation in Brazil’s “Accelerated Growth Plan,” exports Chinese new energy and smart construction standards as regional benchmarks, and builds a comprehensive service network across the Andes and Amazon regions.

In summary, the localization strategies of Chinese engineering machinery companies in Brazil demonstrate how “deep localization” can drive sustainable growth in emerging markets, setting a replicable blueprint for global expansion.  PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

In China this year, green construction machinery is seeing rapid growth, and demand across multiple scenarios is becoming unmistakable. EVE Energy is delivering full-scenario solutions for earthmoving equipment, aerial work platforms and specialized machinery. After six years of shipments in the construction-machinery segment, EVE Energy now ranks second nationwide; individual vehicles have logged more than 16,000 operating hours, and the company’s products are fitted to over 60 OEMs including LiuGong, SANY and Lingong.

According to data from the Construction Machinery Association, domestic sales of new-energy construction equipment are expected to surpass one million units by 2028, and the incremental market for green machinery is opening up rapidly—yet pain points remain: bulky batteries, short cycle life and complex assembly.

EVE Energy’s Huang Xiaobin noted that the company leverages cutting-edge battery innovations to precisely solve these application challenges under tough operating conditions. Its high-performance battery solutions significantly boost equipment efficiency, runtime and safety while cutting full-life-cycle operating costs, accelerating the sector’s march toward efficient, low-carbon and sustainable development.

Source: Finance Sina     Read The Article

PSR Analysis: This year is seen by China’s construction industry as the “Year of Electrification,” and is expected to see penetration leap to 20–25 % with sales of around 120, 000 units and new-energy machines topping 1 million by 2028.

Government policies have shifted from incentives to mandates, and dozens of cities are banning sub-China-IV equipment from urban job sites, forcing a replacement wave. Battery prices have fallen 15–20% in three years while energy density has risen 20%. Coupled with fast-charge, swap and CTB highly integrated packs, the total-cost-of-ownership payback has been improved by two years.

Penetration is following a “small-first, large-later” strategy: forklifts >60%, mini-excavators 20%, wheel loaders 30%, heavy mining trucks <5%, with swap and hydrogen solutions set to unlock the upper-weight segment after 2027. More than 90% of the value chain is now domestic—CATL, EVE Energy, BYD, SVOLT, Xingyi Technology, TELD and others forming a full ecosystem—lifting Chinese brands’ global share from 20% to an expected 40%.

Policies are setting required hard targets for 2025 use of ≥10% of new or renewed construction machines of zero-emission and 80% of public projects in key regions are to be zero-emission equipment. A central 2.5% interest rebate on equipment-upgrade loans, plus local subsidies of RMB 300–500k for every electric excavator, erases roughly 30% of the purchase-price gap.

On the technology side, LFP+CTP/CTB packs deliver >180 Wh/kg, 6,000 cycles and 80% capacity at –30°C; EVE and SVOLT’s 800V platforms recharge to 80% in 15 min. Sany and XCMG’s 5-minute whole-pack swap is already in volume use, raising daily utilization by 8–10%.

XCMG’s 120kW hydrogen wheel loader runs 8h and refuels in 5min, with a 2026 system-cost target of RMB800/kW. In the market, assuming 2,000 operating hours/year and RMB0.7/kWh electricity, a 5-tonne electric loader saves RMB280k over three years versus diesel, paying back in 1.8 years.

“Battery rental + pay-per-hour” schemes from Sany and Zoomlion cut the down-payment by 40%, speeding SME adoption. Meanwhile, Southeast Asia and the Middle East are demanding electric mini excavators at 50% annual growth; Chinese makers, leveraging cost advantages, have captured 70% of those export orders, creating a new outlet for capacity.  PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

Scania Manufacturing (China) Co., Ltd., has officially obtained stand-alone manufacturing qualifications in China. This change represents a major milestone in Scania deepening its localized footprint.

The move was noted recently when the Ministry of Industry and Information Technology released the “Road Motor Vehicle Manufacturers and Products (Batch 398)” catalog in its 2025 No. 17 announcement, explicitly stating that all products already listed by Scania Manufacturing (China) Co., Ltd. are approved to shift their production address from the originally filed site to “No. 1 Zhongrui Avenue, Chengbei Sub-district, Rugao City, Jiangsu Province.”

Scania Manufacturing (China) Co., Ltd. is part of the TRATON GROUP, the commercial-vehicle business unit of Volkswagen Group. Securing this production license means Scania no longer needs to rely on any previous joint-venture or licensed manufacturing arrangements; instead, it can now produce vehicles in China as a wholly independent legal entity, allowing it to integrate the supply chain further, optimize capacity structure, and strengthen its quality-management system.

Scania Manufacturing (China) Co., Ltd. will produce diesel heavy-duty trucks, battery-electric heavy-duty trucks, and core components such as engines, transmissions, and axles. As a world-leading supplier of commercial vehicles and engines, Scania has long regarded China as a key market. Locating the plant in Rugao, Jiangsu, aligns with the city’s strengths as a major manufacturing hub in the Yangtze River Delta and with the supportive local industrial policies. Obtaining stand-alone production status enables Scania to respond faster to Chinese customers, cut costs, and sharpen its market competitiveness, while also underscoring its strategic commitment to sustainable, long-term growth in China.

Source: Commercial Motor World      Read The Article

PSR Analysis:  As China’s commercial-vehicle market moves rapidly up-market, green and smart, Scania’s accelerated localization drive positions it to capture the rollout of new-energy and autonomous technologies and to reinforce its brand in heavy trucks and buses.

The approval makes Scania the first foreign CV manufacturer to obtain full vehicle-building credentials in China as a stand-alone legal entity. The new plant immediately enjoys the same incentives domestic players receive—preferential land pricing, duty-free equipment imports, etc.—while the re-engineered supply chain gives Chinese suppliers direct entry into Scania’s system. This cuts procurement costs and delivers faster after-sales service, handing the company a lasting advantage over rival imported brands.

Scania’s establishment of a wholly owned factory in China holds promising prospects, but it also faces multiple challenges: The Chinese heavy-duty truck market has entered an era of intense “hyper-competition.” Scania now must compete with imported brands such as Mercedes-Benz and Volvo, and it also must directly confront domestic giants like FAW, Dongfeng, Sany, and XCMG, which offer rapid technological advancement, high cost-effectiveness, and have caught up in intelligent connectivity and service network coverage.

Although localization helps reduce costs, if Scania cannot keep its prices within 20% above those of high-end domestic trucks (around RMB 400,000), its “authentic European” quality advantage may fail to appeal to price-sensitive customers.

At the same time, the company must shift from merely providing products to offering “customized services,” quickly gaining deep insights into complex niche markets such as express logistics, cold chain, green channel, and general freight, thereby enhancing localization agility.

In terms of electrification and intelligence, Scania’s localized electric product development—especially battery-swapping trucks—lags behind competitors who have already formed deep partnerships with battery giants like CATL; its adoption of autonomous driving and connected vehicle technologies also needs acceleration to meet the growing demands of the Chinese market.

Achieving an 85% localization rate is a major test for supply chain management, particularly since the supplier for core battery packs remains unclear, potentially hindering its electrification transition.

Furthermore, Scania’s long-standing image as a premium imported brand presents a branding challenge: after localization, maintaining its reputation for “premium quality, reliability, and efficiency” while convincing the market to accept “Made-in-China” Scania trucks and trusting that their quality matches that of European production will require sustained communication and market education.    PSR

Dongfeng Motor Group reportedly plans to sell its 50% stake in Dongfeng Honda Engine Co., Ltd. Joint venture with Honda Motor Co., according to an Aug. 18post on the official website of Guangdong United Property and Equity Exchange. The project is in the pre-listing phase, with no reserve price set, and the deadline is Sept. 12.

According to the audited figures in the listing documents, Dongfeng Honda Engine was valued at RMB 5.4 billion (approximately USD 752 million) in 2024. The company posted a net loss of RMB 227.8 million for the same period, carries liabilities of RMB 3.3 billion.

According to the official website of Dongfeng Honda Engine Co., Ltd., the company was established in 1998. Its shareholders are Dongfeng Motor Corporation, Honda Motor Co., Ltd., and Honda Motor (China) Investment Co., Ltd., holding 50%, 40%, and 10% of the shares respectively.

Headquartered in Guangzhou, the company is mainly responsible for the development, production, and sale of automobile engines and their components for passenger cars and provides corresponding after-sales services. Its products are primarily supplied by the passenger-vehicle model manufactured by GAC Honda. At present, the company has an annual production capacity of 480,000 complete engines and over 650,000 sets of parts and components.

Dongfeng Motor Group’s plan to divest its engine business underscores how fierce competition has become amid China’s rapid shift toward electric vehicles. Japanese automakers—including Honda, Toyota, and Nissan—have lagged in electrification and are now confronting strong headwinds from domestic brands such as BYD.

Competition among China’s home-grown automakers is also intensifying. Data from the China Automotive Technology & Research Center show that Dongfeng Motor, which operates joint ventures with both Honda and Nissan, saw its annual deliveries fall from a peak of 3.8 million units in 2016 to 1.5 million units last year.

Source: GASGOO     Read The Article

PSR Analysis: Dongfeng’s sale of its stake in Dongfeng Honda Engine is a textbook case of “off-loading fossil-fuel assets and shifting capital into new-energy vehicles.” By divesting the engine plant, Dongfeng is restructuring its portfolio: it sheds a loss-making, high-debt fossil-fuel asset, pockets a lump-sum cash inflow, lowers its leverage, and channels the freed-up resources into its EV and self-owned passenger-car businesses. 

Since 2024, China’s new-energy passenger-vehicle penetration rate has exceeded 50% for six consecutive months, while retail sales of traditional-fuel vehicles have been falling by roughly 15% per year. DHEC’s sole vehicle customer—GAC Honda—sold only 171,000 units from January to July 2025, down 29% year-on-year, and its parent, Honda Motor China, delivered 360,000 vehicles in the same period, a 23% decline. This shrinking demand has directly eroded DHEC’s engine orders and compressed its capacity utilization.

The surge of domestic new-energy vehicles has pushed joint-venture fuel-car sales and profits into a simultaneous decline; some players are now bleeding cash at an accelerating pace. With China VI emission rules tightening, any further investment in conventional powertrain capacity offers dismal returns. Consequently, several major joint ventures—including Nissan, Honda, General Motors, and SAIC Volkswagen—have announced plans to cut output or shrink capacity, and the scale of these reductions is still expanding.   PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

China National Heavy Duty Truck Group and Toyota Motor Corporation signed a strategic cooperation agreement on April 25, at Toyota’s headquarters in Nagoya, Japan.

Toyota Motor Corporation possesses world-leading hydrogen fuel cell technology, and China National Heavy Duty Truck Group is a leading enterprise in China’s commercial vehicle industry. The hydrogen fuel cell tractor jointly developed by the two parties has already been delivered to the market in batches. In the future, the two sides will establish more extensive cooperation in the fields of cooperative research and development, demonstration and operation, promotion and application, and business model innovation of hydrogen fuel commercial vehicles, and work together to create a new ecosystem for the zero-carbon logistics industry chain.

Source: CNHTC     Read The Article

PSR Analysis. Toyota possesses world-leading hydrogen fuel cell technology, while China National Heavy Duty Truck Group is a leading enterprise in China’s commercial vehicle industry. The hydrogen fuel cell tractors jointly developed by the two parties have already been delivered to the market in batches. This kind of cooperation can combine Toyota’s technological advantages with China National Heavy Duty Truck Group’s market and manufacturing capabilities, accelerating the optimization and innovation of hydrogen fuel cell technology.

The cooperation between Toyota and China National Heavy Duty Truck Group may form a complete hydrogen energy industry chain. For example, the inauguration of Toyota’s dedicated fuel cell research and production plant in Beijing marks the entry into a new phase of the fuel cell project jointly promoted by Toyota and its Chinese local partners. This kind of industrial synergy will help enhance the overall competitiveness of the hydrogen energy industry and promote its rapid development

This year, three hydrogen energy corridors are planned to be put into operation, covering major arteries such as the Beijing-Shanghai, Guangzhou-Shenzhen, and Chengdu-Chongqing routes. After scaling up, the cost of fuel cell systems is expected to decrease by 60% compared to 2020. At the same time, it is also observed that infrastructure needs to be developed in tandem. Currently, 60% of the cost of hydrogen comes from green hydrogen production using renewable electricity, and there is a need to further reduce electricity prices. Additionally, there are only 300 hydrogen refueling stations nationwide, with a target of 1,000 stations by the end of 2025. The construction of hydrogen refueling stations requires substantial financial investment. The government may include hydrogen-powered heavy-duty trucks in its purchase subsidy program for new energy vehicles. The implementation progress of these measures will largely determine the development trajectory of hydrogen energy heavy-duty trucks.  PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

Yuchai and XCMG have signed an agreement to jointly build and share new channels for overseas development and embark on a new chapter of cooperation in the Eurasian region.

The agreement stipulates that Yuchai and XCMG will establish Yuchai Service Stations and Yuchai Service Training Centers in the Eurasian region to provide technical training and corresponding technical support for XCMG’s local dealers and customers. Yuchai also authorizes XCMG as its spare parts dealer in the Eurasian region. In addition, the two parties will jointly carry out the Blue Ocean Action brand promotion activities in the Eurasian market to enhance their international brand influence.

It is reported that XCMG, which sells construction machinery and tractors equipped with Yuchai engines in the Eurasian region, is one of Yuchai’s core OEMs in the area. After the signing of this strategic agreement, the two sides will further deepen their cooperation and promote the high-quality development of their overseas expansion strategies.

Source: HCZYW    Read The Article

PSR Analysis: In 2024, both Yuchai International and XCMG Construction Machinery achieved remarkable growth in their overseas market revenues. Yuchai International’s total revenue reached $2.665 billion USD (19.134 billion yuan) by December 31, 2024, with a year-on-year increase of 6.02%, and its net profit attributable to shareholders grew by 13.15% to $44.98 million USD (323 million yuan). The company’s overseas market revenue surged by over 42%, with products exported to more than 180 countries and regions.

Notably, a power generation project in the Middle East, involving 153 generator sets, marked the largest single overseas export order for power generation that year. Additionally, the joint venture between Yuchai International and MTU sold approximately 700 diesel generator sets in 2024, successfully turning the business around from losses to profits.

XCMG Construction Machinery also saw robust overseas performance, with an overseas market revenue of $5.81 billion US dollars (41.687 billion yuan) in 2024, representing a year-on-year increase of 12.00% and accounting for 45.48% of its total annual operating revenue. In the first quarter of 2025, this revenue continued to grow, reaching $3.049 billion USD (21.9 billion yuan), up by 4.8% year-on-year.

To drive this growth, XCMG has focused on in-depth localization operations, establishing an integrated global development model that includes export trade, greenfield investments, cross-border mergers and acquisitions, and global R&D.

The company has also emphasized the development and promotion of high-end and new energy products, with revenues from these segments growing by more than 10% and 26.76% year-on-year, respectively. XCMG’s products are exported to over 190 countries and regions, covering more than 95% of the Belt and Road countries and regions, supported by a global network of over 40 subsidiaries and 2,000 service and spare parts outlets.

Building on these successes, Yuchai and XCMG have signed an International Strategic Cooperation Agreement to further expand their global presence. This partnership will combine Yuchai’s strengths in power solutions and XCMG’s extensive global network and localization capabilities, aiming to enhance market share and drive sustainable growth in international markets.  PSR

Jack Hao is Senior Research Manager – China for Power Systems Research