Domestic commercial vehicles rush to increase prices to cope with rising costs

October 09, 2025

With rising raw material costs, the automotive industry has been quietly adjusting. According to exclusive reports from the Shanghai Securities News, domestic light and heavy trucks have already seen price increases due to soaring production costs. However, despite these hikes, supply chain bottlenecks continue to hinder production, leaving demand unmet. Interestingly, for the first time in over a decade, some original equipment manufacturers (OEMs) have begun asking their suppliers to purchase goods, signaling a shift in the traditional supplier-buyer dynamic. A senior executive from a self-owned commercial vehicle company told the Shanghai Securities News, “Since 2008, commercial vehicles have experienced consistent price hikes. Major brands like Foton Motors and Jinbei Automobile have raised prices multiple times.” According to information obtained from distribution channels, FAW Group’s light truck series saw price increases of between 1,000 and 2,500 yuan, while Jianghuai Automobile’s light trucks rose by 2,000 to 4,000 yuan. Even the smallest price adjustments reached as high as 700 to 800 yuan per unit. Li Mengxi, an analyst at Guojin Securities, noted that heavy truck prices have also risen significantly, with increases ranging from 4,000 to 10,000 yuan. The average selling price of a domestic heavy truck is around 300,000 yuan, reflecting a 2% to 3% increase. Some models have even gone up by nearly 60,000 yuan. In response to external pressures, dealers have stopped offering discounts, leading to higher vehicle prices. While some commercial vehicle companies denied this claim, others admitted that there has been a noticeable price hike compared to previous sales levels. According to the Shanghai Securities News, price increases among commercial vehicle manufacturers have become more frequent. One senior executive revealed, “Since 2008, some companies have raised prices once a month, and in some cases, even several times a month.” When asked if these increases were coordinated, most companies insisted it was a spontaneous decision driven primarily by rising costs. Yi Changfeng, an analyst at Changjiang Securities, explained that the sharp rise in raw material prices—especially steel and rubber—has directly increased production costs. He added, “This year’s surge in iron ore prices has pushed up the cost of automotive steel, and rising oil prices have caused rubber parts to become more expensive.” Despite these price increases, companies can only offset part of the cost pressure. The rest must be absorbed through internal efficiency improvements and better management practices. Unlike passenger car manufacturers, which are more sensitive to price changes, commercial vehicle companies have more leeway to raise prices. Yi Junfeng pointed out that the Chinese commercial vehicle market is relatively stable, with strong market positions held by major players such as Sinotruk and Weichai in the heavy truck segment, and FAW, Foton, and JAC in the light truck sector. This dominance gives them confidence to increase prices without significant fear of losing market share. From a market perspective, the recent price hikes have not had a negative impact so far. Due to supply chain constraints, commercial vehicles remain in short supply. As one high-level executive stated, “Car buyers no longer focus on price reductions or discounts; they’re rushing to buy. Because of the impact of spare parts shortages, our production can’t meet the demand.” He added, “As costs continue to rise, the supply of key components is becoming tighter. For the first time in a decade, OEMs have started demanding parts from suppliers. We’ve even sent buyers to suppliers to build stronger relationships and ensure a steady flow of parts.”

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