Reported by Pulsestacks on May 9th
Great things often have small beginnings, and waves rise from tiny ripples.
The Chinese pickup truck market is currently experiencing unprecedented support for lifting restrictions. Since 2023, the State Council has issued three documents proposing the relaxation of restrictions on pickup trucks entering cities, sparking a nationwide trend of lifting the ban on pickups. The implementation of the first new standard for pickups, the "General Technical Conditions for Multi-purpose Trucks," has played a crucial role in market development.
According to predictions by the China Association of Automobile Manufacturers and the National Information Center, with the steady progress of lifting restrictions on pickup truck access to cities, the pickup truck market is expected to see significant expansion. Domestic demand in the pickup truck market could surpass one million units by 2030.
Chairman of the Pickup Branch of China Association of Automobile Manufacturers/CEO of Great Wall Motors Pickup Brand, Zhang Haobao
"Optimistically, the total sales volume of the domestic and export pickup market is expected to reach 2 million units by 2030," said Zhang Haobao, Chairman of the Pickup Branch of China Association of Automobile Manufacturers and CEO of Great Wall Motors Pickup Brand, in an interview with pulsestacks.
The gradual relaxation of policies has injected new vitality into the market, and consumers' perception of pickups is gradually changing. The development of the Chinese pickup market has entered a critical period.
As the global automotive industry transitions irreversibly from traditional fuel to new energy, how will versatile pickup models for multiple uses and scenarios respond to the challenges of this era? With intensified market competition, how will Great Wall Pickup, which holds nearly 50% market share in the domestic segment, maintain its market leadership position while facing challenges from new entrants?
With the continuous maturation of the Chinese automotive market and diversification of consumer demands, pickups are gradually transitioning from their traditional image as utility vehicles to multifunctional lifestyle companions. Proposals related to pickups during the two sessions include suggestions to classify pickups as passenger vehicles, align inspection and scrappage deadlines with passenger vehicles, emphasize the development direction of electrification, passengerization, and household use of pickups, and advocate for the popularization of pickup culture. Despite this, Great Wall Pickup still faces a series of challenges and issues in driving industry development, such as policy restrictions, market awareness, and the transition to new energy.
"China's pickup market is still in the stage of popularization, and consumers' perception and experience of pickups need continuous improvement and reinforcement. The entrenched image of pickups in consumers' minds still categorizes them as commercial vehicles. In reality, high-end pickup products now possess the comfort of sedans, the off-road capability of SUVs, the leisure functionality of wagons, and the loading capacity of light trucks, fully covering all usage scenarios. Therefore, changing people's perception of pickups requires further loosening various restrictions on pickups, as well as continuous improvement and reinforcement through innovative pickup products and pickup culture, to help drive the expansion of the pickup market and the popularity of pickups, which also relies on the collective efforts of all stakeholders in the pickup industry."
As Zhang Haobao mentioned, Great Wall Cannon itself is the strongest supporter and practitioner of the proposal to lift pickup policies.
Since the lifting of the pickup ban in 2016, Great Wall Pickup has entered cities where pickup restrictions have been relaxed, actively promoting the implementation of policies. By 2022, Great Wall was elected as the first chairman unit of the Pickup Branch, with Zhang Haobao also elected as the Chairman of the Pickup Branch of China Association of Automobile Manufacturers, contributing to the improvement of the pickup policy environment.
As of now, over 90% of prefecture-level and above cities nationwide have lifted restrictions on pickups entering the city. The three major direct-controlled municipalities of Chongqing, Tianjin, and Shanghai have also relaxed pickup passage requirements, indicating that a comprehensive lifting of the pickup ban may be on the horizon. The strong pickup ban lifting policy has driven a significant increase in pickup consumer demand and improved user awareness, indicating the potential for a million-unit expansion in the pickup market in the future.
"The comprehensive lifting of the pickup ban in the future will also improve policies related to pickup scrappage and inspections, further stimulating the pickup consumer market, promoting the passengerization and high-end development of pickups, and allowing more users to use pickups more easily."
Pickups still have the lowest penetration rate of new energy vehicles. Currently, the penetration rate of new energy pickups in China is less than 1%, with a very low user proportion; diesel pickups still dominate, accounting for around 80%.
The lifting of the pickup ban is expected to expand the pickup market scale and increase urban usage scenarios, facilitating the further transition of pickups to new energy and expanding the market.
With the steady implementation of pickup ban lifting policies across regions, pickup sales continue to steadily increase.
"The positive impact of pickup restriction policies on sales is crucial," Zhang Haobao believes.
"Combining the pickup ban lifting policies issued by various provinces and cities, the previous pickup restriction status, and areas where infrastructure is being heavily developed, I believe that the Chinese pickup market will soon experience a true 'explosion'."
In the era of global new energy transformation trends, who will arrive first in the pickup industry, hybrids or electric vehicles? In Zhang Haobao's view, although pure electric drive is the future trend, pickups as a versatile and multi-scenario vehicle have unique usage environments and demands, with certain limitations in pure electric vehicles in outdoor endurance and other aspects.
In contrast, hybrid pickup models have greater advantages. They can not only fulfill multi-scenario, multi-purpose functions but also address range anxiety issues, enabling pickups to maintain stable performance even in complex outdoor environments.
"I believe that in the pickup industry, hybrids may arrive before electric vehicles," Zhang Haobao mentioned.
Taking the Hi4-T longitudinal parallel hybrid architecture developed by Great Wall Motors as an example, starting from various technical dimensions such as off-road architecture layout, hybrid strategy and management, energy matching and recovery, it can meet the full-scenario needs of off-road outdoor activities. Hybrid technology holds considerable potential and advantages in the pickup industry.
Zhang Haobao believes that the electrification process of the pickup industry will be a gradual transition, and hybrid technology will play an important role in this process.
"With continuous technological advancements and evolving market demands, we look forward to seeing more excellent hybrid pickup products emerge, driving the pickup industry towards a more environmentally friendly and efficient direction."
How to create a distinctive Chinese pickup culture? As a pioneer in the pickup new category, Great Wall Cannon has undertaken numerous practices and explorations. In order to establish a closer connection between the pickup lifestyle and users, Great Wall Cannon has created the first exclusive pickup industry APP, with over 1.22 million followers; established the first and largest pickup enthusiasts organization in China, the Cannon Alliance, with a scale exceeding 48,000 members, continuously expanding across all 31 provinces in the country; and founded the first pickup academy in China, integrating six interest circles of the pickup academy and the Mountain and Sea culture co-creation system, achieving dual-drive empowerment. "In China, pickup trucks are still in their youth, with enormous room for growth." Zhang Haobao believes that in addition to high-quality products and valuable driving experiences, Great Wall pickup trucks in the future must continue to collaborate with users to create pickup truck products and marketing activities, driving a more diverse pickup truck lifestyle through culture and stimulating consumption, thereby promoting diversified automotive consumption.
In the increasingly diverse consumer market in China, establishing a stronghold for Chinese pickup truck culture, making pickups a way of life, an attitude, and a spirit.
