Favorable policies continue to make China's pickup truck market "break and stand"

Reporter Guo Yangchen and Quartz Jing report from Shanghai

A few days ago, in Shanghai's Xuhui Riverside, the crowd of people who came to visit the Cybertruck lined up several tens of meters long, and people raised their mobile phones to take pictures. "This car is cool, futuristic and technological, and I look forward to the day when it will be road-legal in China." A young man who visited sighed.

In 2024, the popularity of Cybertruck, coupled with the popularity of the "Great Wall Cannon" on social platforms, will further bring the slightly niche product of pickup trucks into the public eye, especially the attention of young people.

However, due to the impact of policies such as banning traffic in some cities, mandatory scrapping for 15 years, and annual inspection, the sales volume of the domestic pickup truck market is less than expected. According to the latest domestic pickup terminal sales data, in April 2024, the domestic pickup terminal sales will be 26,075 units, a year-on-year decrease of 4.4%; From January to April 2024, the cumulative sales of domestic pickup truck terminals will be 99,029 units, a cumulative year-on-year decrease of 16.4%.

Gu Guoquan, deputy secretary-general of the pickup branch of the China Association of Automobile Manufacturers, said that in 2024, the domestic pickup truck market will show a slow start. Sales in the first quarter fell short of expectations. In the second quarter, with the release of a number of new models at the Beijing Auto Show, the implementation of relevant policies such as trade-in will bring positive factors to the pickup truck market.

The reporter of "China Business Daily" noticed that on the one hand, the brands represented by Ford Zongheng and Geely Radar focus on off-road, camping, outdoor sports and other subdivisions to meet the personalized needs of users, trying to make pickup trucks "break the circle" to attract new users; On the other hand, due to the low emission requirements and policy restrictions for pickup trucks in foreign countries, major pickup truck companies have turned to seize overseas markets.

The China Association of Automobile Manufacturers also believes that in the long run, under the premise of the steady progress of the lifting of the right of way for pickup trucks into the city, the domestic demand for pickup trucks will reach more than 1 million units by 2030.

"Breaking the circle" attracts consumers

According to data disclosed by Ford, the Ford Ranger sold more than 2,400 units in just one month after its launch, occupying the top three positions in the national pickup truck market with a market share of 9%. From January to April 2024, the cumulative sales of the Ford Ranger have approached 5,500 units.

"Frankly, the Ford Ranger is selling a little bit more than we expected." Liu Jisheng, president of Jiangling Ford Technology and manager of Ford Zongheng, previously told reporters that the more important thing for Ford Zongheng in 2024 is brand building, and if the Ford Ranger continues to maintain such sales performance, all previous production and sales plans will be invalid. "The vast majority of new car owners from 'breaking the circle' have not seen such a big market in the past."

The relevant person in charge of Ford Zongheng further said that Ford Zongheng has broken the traditional concept of "pickup trucks are trucks", so it is more new buyers converted from owners of other models. At the same time, the percentage of first-time buyers of the Ford Ranger is low, with most users already owning at least one car, and nearly half owning at least four or more cars.

As a high-end pure electric pickup brand, Geely Radar pays attention to the rise of young consumers and personalized needs. "The new consumer group, represented by the post-90s, is becoming the main force of social consumption." The relevant person in charge of Geely Radar told reporters that they have distinct personalities, vitality and are willing to share, which has largely led to the fire of pickup trucks and related modifications, camping, and fun.

The reporter learned that Geely Radar has carried out comprehensive innovation for this purpose. In terms of product concept, the design concept of comprehensive passenger use is adopted, which subverts the R&D and design ideas of traditional pickup trucks; In terms of product research and development, focusing on the core of pure electric technology, intelligent Internet of Things, integrated body, external discharge, etc., we have created new products that subvert traditional pickup trucks such as radar RD6 and radar horizon.

According to the relevant person in charge of Geely Radar, relying on the characteristics of the energy platform and intelligent IoT platform, Geely Radar has created scenario-based solutions for camping, fishing, and outdoor sports to meet the personalized needs of emerging consumer groups. At the same time, through user co-creation, users are deeply involved in the personalized customization and modification of products to meet more personalized user needs.

Customization is also the direction of Ford's direction. The reporter noticed that the Ford Ranger includes 16 models in three series: mountain version, exploration version and wilderness version. At the same time, the official "Ford Zonghenggou" platform provides users with official modification services.

"Ford aims to be the leader of a new outdoor off-road lifestyle." The relevant person in charge of Ford Zongheng said that "Ford Zongheng Purchase" provides users with more than 3,000 models, covering more than 100 categories of various outdoor off-road life and supplies, as well as more than 200 official and Zongheng selected modified parts, with cumulative sales exceeding 23 million yuan. At the same time, Ford also relies on its channel network and off-road community resources around the world to create more than 1,000 outdoor off-road community activities every year, and will launch overseas routes in June.

Moved to overseas markets to boost sales

According to the latest domestic pickup truck terminal sales data, from January to April 2024, the cumulative sales of pickup truck terminals will be 99,029 units, a cumulative year-on-year decrease of 16.4%.

As a result, pickup truck manufacturers have turned their attention abroad. According to statistics from the China Association of Automobile Manufacturers, 18,772 domestically produced pickup trucks were exported in April 2024, a year-on-year increase of 52%; From January to April 2024, a total of 75,889 vehicles were exported, a year-on-year increase of 51.1%, and the overseas export performance of pickup trucks is very bright.

In July 2023, Geely Radar officially started its globalization journey and held the first batch of overseas models off the assembly line in Zibo, Shandong Province. In April 2024, Geely Radar signed a cooperation agreement with dealer representatives from more than a dozen countries around the world.

"As of 2024, Geely Radar has successfully expanded to more than 20 overseas markets and received orders of more than 1,000 vehicles in Latin America, the Middle East, Southeast Asia, Central Asia and Africa." The relevant person in charge of Geely Radar said that in the future, Geely Radar will promote new energy pickup products in various power forms and sizes overseas. At the same time, Geely Radar will also establish a complete service system and new energy supporting measures overseas to fully meet the needs of users in different countries and regions, and form a complete new energy pickup ecosystem.

SAIC MAXUS's overseas sales in 2023 will exceed 150,000 units, accounting for more than 90% of the developed global pickup truck markets such as Australia, New Zealand, Europe, and the Americas, creating a "Chinese business card" in the global pickup truck market.

According to the relevant person in charge of SAIC MAXUS, in the Australian and New Zealand markets, SAIC MAXUS broke the situation of "Japan and South Korea in the world" in the local market, and the pure electric pickup T90 EV became the first mass-produced pure electric pickup truck in the local market; In the Chilean market, SAIC MAXUS won the first place in pickup truck retail in only 5 years, and in 2022, it also broke the Chilean single-year pickup truck sales record, ending 12 consecutive years of Japanese dominance; In the Mexican market, SAIC Maxus achieved sales of more than 10,000 units in the first year of entry with a single model.

The overseas market of JAC pickup trucks also maintained an increase of more than 10%. It is understood that JAC pickup truck currently has nearly 20 overseas KD factories, and its high-end Humway pickup truck will be listed in Australia, Italy, Mexico, Brazil and other markets this year; The first intelligent pure electric four-wheel drive pickup truck, Huntux EV, will soon be launched in Europe, Southeast Asia and South America. In 2025, its Humway hybrid pickup truck will be launched globally.

When the "pickup truck ban" is in progress

"Whether the right of way can be fully lifted is the key to the further development of the pickup truck segment." Zhang Xin (pseudonym), who works for a domestic pickup truck manufacturer and has purchased two pickup trucks himself, told reporters.

Gu Guoquan also believes that the lifting of the ban on pickup trucks in some areas is not complete, and the system of mandatory scrapping for 15 years and annual inspection has seriously restricted the expansion of the pickup market.

In fact, various localities are also speeding up the "lifting of the ban on pickup trucks". On April 29, Guiyang City held a press briefing on the adjustment of truck traffic restriction measures. At the meeting, it was announced that Guiyang City will further relax some car restrictions in the urban area from now on. Among them, all restrictions on the movement of multi-purpose trucks (i.e. pickup trucks) in urban areas have been lifted. This is also the fifth city to lift the ban on pickup trucks after the ban in Baotou, Zhengzhou, Nanning and Dazhou this year.

Since 2022, the State Council has also issued a document mentioning the "lifting of the ban on pickup trucks". On April 20 of that year, the General Office of the State Council issued the "Opinions on Further Unleashing Consumption Potential and Promoting the Sustainable Recovery of Consumption", proposing to study further relaxing the restrictions on pickup trucks entering the city; On October 26, the "10th National Video and Telephone Conference on Deepening the Reform of "Delegating Power, Delegating Power, and Improving Services" Key Task Division Plan" was even clearer, promoting the abolition of restrictions on pickup trucks entering the city.

"In the past two years, all parts of the country have been implementing the policy of 'lifting the ban on pickup trucks', and 97% of cities above the prefecture level have lifted the restrictions on pickup trucks entering the city, which makes us optimistic about the future pickup policy. Once the market ban is lifted, the Ford Ranger will usher in even faster sales growth. The relevant person in charge of Ford said.

"The promotion of the lifting of the ban on pickup trucks has provided a more relaxed environment for the production and sales of pickup products, and at the same time dispelled the concerns of many consumers about buying pickup products, which greatly released the market potential." Geely Radar believes that the lifting of the ban on pickup trucks is an irreversible policy trend. In the long run, pickup truck products are expected to eventually obtain the same policy status as passenger cars, and the number of ownership and market share will continue to increase, and it will be on par with developed markets in the pickup industry such as North America.

The relevant person in charge of Geely Radar further said that Geely Radar, as a car company based on the field of new energy pickup trucks, will make full use of the policy opportunity of lifting the ban on pickup trucks to expand the market. On the one hand, the product line is constantly updated, and on the other hand, the test drive experience is continuously carried out nationwide to attract more potential users.

However, industry insiders also pointed out that in order to truly realize the widespread popularity of pickup trucks, these achievements are far from enough, and pickup trucks are still prohibited in the central urban areas of core first- and second-tier cities such as Beijing, Shanghai, Guangzhou, and Chengdu. At the same time, pickup trucks are large and inconvenient to park, and they are still the representatives of "tool cars" in the hearts of many consumers, and have begun to be competitive with SUVs and MPVs.