Volvo’s Chinese JV partner, China National, has announced plans to invest GBP1.37 bn in R&D over the next four years. Moreover, in order to mitigate the effect of overcrowding within the Chinese market – which has a current capacity surplus of around 350,000 units per year – CNHTC, already China’s largest heavy truck exporter, is to establish a worldwide network of new plants, including facilities in South America, Russia and Eastern Europe.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Speaking to the China Daily, CNHTC chairman Ma Chunji said that he expected other Chinese OEMs to follow this lead, adding that he expected one third of China National’s sales to come from export business by 2010.


This aim constitutes a significant warning both to European OEMs as well as JV participants in China.


Writing in the Asia Times, Irina Aervitz alludes to the difficulties encountered by DaimlerChrysler in its on-off relationship with another Chinese OEM, Foton:


“The lack of commitment from Foton towards a joint venture with DaimlerChrysler demonstrates a shift in technology appropriation strategy among Chinese auto enterprises. Foton wants technology, but does not want to share its profits with a foreign partner in a joint venture.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Volvo has already encountered issues with CNHTC with the latter recently striking a deal with Iran Khodro Diesel for Iranian-based production of up to 10,000 units annually. Iran is a significant market for Volvo, which is tied with IKD’s main Iranian competitor SAIPA.


It seems unlikely that CNHTC vehicles will enter the EU truck market; problems associated with both infrastructure and market saturation would seem to preclude this. But a low-cost product bearing a strong resemblance to a Volvo truck would have a lot going for it in the emerging markets; those same emerging markets upon which many European OEMs have been betting the farm for some years now.


Oliver Dixon