A Deloitte report, based on analysis of the North American, European, and Greater China markets, indicates that zero-emission commercial vehicles (ZETs) are projected to account for approximately 60% of new vehicle sales by 2035. The commercial vehicle industry is undergoing a profound transformation driven by decarbonization, digitalization, regulations, and customer demands, posing a direct challenge to the strategic paths of original equipment manufacturers (OEMs).
The future of the industry is primarily determined by the interaction of two key uncertainties: first, the complexity of product technology (the conflict between highly customized and standardized platforms), and second, ownership and business models (traditional ownership versus the transformation to "Truck as a Service" (TaaS). This gives rise to four significantly differentiated strategic scenarios:
- High complexity + TaaS: Highest capital requirements, OEMs must bear the dual pressure of technology research and development and asset holding.
- Standardization + TaaS: Focuses on large-scale operations, but requires bearing a high asset burden.
- High complexity + traditional ownership: Maintaining a complex product line, but facing the risk of profits being eroded by R&D and manufacturing costs.
- Standardization + traditional ownership: optimal financial efficiency, but may sacrifice service revenue opportunities.
In the face of uncertainty, the report clearly states that OEMs must immediately invest in six core areas, regardless of how the future evolves: modular zero-emission platforms, digital service architectures, flexible manufacturing, strategic supply chain partnerships, talent reshaping, and cost restructuring. These "unwavering actions" are the foundation for building long-term resilience and ensuring a competitive edge in any future competitive landscape.
Our company is currently making reforms and investments in these six areas to cope with future uncertainties.
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