As a barometer of China's commercial vehicle industry, Weichai Power recently released its financial report for the first half of 2025. The data shows that Weichai achieved a revenue of 113.152 billion yuan in the first half of the year, an increase of 0.59% year-on-year; the net profit attributable to shareholders of the listed company was 5.643 billion yuan. Against the backdrop of the recovery of the commercial vehicle industry and the acceleration of the transition to new energy, Weichai Power demonstrated a distinct feature of stable growth in traditional business and accelerated growth in emerging business, fully demonstrating the resilience and determination to move towards new directions of the commercial vehicle giant in its strategic transformation.
With diversified businesses working together, the path towards high-end development is clear.
The financial report shows that in the first half of 2025, the gross profit margin of Weichai Power reached 22.2%. The optimization of product structure and the reduction of costs in the supply chain have achieved remarkable results. The multi-business segments have worked collaboratively, and the direction of high-end development is clear.
The engine business has a solid foundation, and the advantage of gas power is prominent. Large-displacement engines have become a new growth area. In the first half of the year, Weichai Power sold 362,000 engines, among which 125,000 were for heavy-duty trucks. Looking back, in December 2024, Weichai released three gas engines: WP3NNG-4.0, WP8NG-4.0, and WP16NG-4.0, completing the gas 4.0 product family; in February 2025, the 80th gas-powered engine of Weichai was delivered in Chengdu, and a new generation of WP16NG4.0 was launched, further consolidating its leading position in the gas power market.
In the first half of the year, the sales volume of the high-end M series large-displacement engines of Weichai exceeded 5,000 units, increasing by 41% year-on-year; the cumulative sales of data center engines reached nearly 600 units, increasing by 491% year-on-year. Under the current global AI data center construction boom, the demand for large-displacement engines as core components of the electrical system has significantly increased. According to CICC research, the market size of large-displacement diesel engines for data centers in China will approach 10 billion yuan in 2025, and the global market size will exceed 40 billion yuan in 2026. With the full series of products and technical accumulation formed through ten years of layout, Weichai has strong competitiveness in the data center backup power market and is continuously enjoying industry benefits.
The new energy business has entered the acceleration stage, with double growth in both vehicle manufacturing and battery power. The holding subsidiary Shaanxi Heavy Industry sold 73,000 heavy trucks in the first half of the year, a year-on-year increase of 15%, among which the sales of new energy heavy trucks exceeded 10,000 units, a year-on-year increase of 255%; Weichai (Yantai) New Energy Power Industry Park was completed and put into operation, and the company's battery power sales in the first half reached 23.2 GWh, a year-on-year increase of 91%, the revenue of the new energy power technology business was 1.21 billion yuan, a year-on-year increase of 37%, with a strong growth momentum.
High-end intelligent equipment manufacturing performed outstandingly, and agricultural equipment and overseas business achieved breakthroughs simultaneously. Weichai Lovol smart agriculture had a revenue of 9.86 billion yuan in the first half of the year, of which export revenue was 1.15 billion yuan. Its tractors, wheeled grain harvesters, and corn harvesters ranked first in the Chinese market share; in the overseas sector, the German KION Group had new orders of 6.21 billion euros in the first half of the year, a year-on-year increase of 22.2%, and the new orders in the second quarter reached a record high; the US PSI had revenue of 330 million US dollars in the first half of the year, a year-on-year increase of 59%, net profit was 70 million US dollars, a year-on-year increase of 145%, and the effectiveness of international layout continued to be evident.
Clear future strategy: Consolidate traditional advantages and intensify efforts in emerging fields
For the second half of 2025 and long-term development, Weichai has clearly defined its multi-dimensional development directions, opening up paths for sustained growth.
Traditional business optimization: Policy dividends drive demand. In the traditional internal combustion engine sector, the old heavy-duty truck scrappage policy has been expanded to include natural gas heavy trucks and vehicles meeting the fourth emission standard. This policy will further stimulate replacement demand, injecting new impetus into the growth of Weichai's natural gas engines and heavy truck business.
New energy business breakthrough: Weichai has clearly set a target of doubling or more in the revenue of its new energy power business by 2025. With the further release of production capacity in the Yantai New Energy Power Industrial Park and the continuous technological iteration, the new energy business is expected to become Weichai's more core growth engine.
Market and Technology Dual Drive: On the market front, Weichai seized the opportunities brought by the vigorous infrastructure construction and equipment renewal policies both domestically and internationally, expanded the market share of its core products, increased the export volume of high-end products, and maintained its leading position in the natural gas engine market; on the technological front, Weichai firmly relied on differentiated technologies to strengthen product competitiveness, promoted the market penetration rate of high-end products; at the same time, it intensified research and development in cutting-edge fields such as hydrogen fuel cells, solid oxide fuel cells (SOFC), and pure electric drive systems, to seize the technological high ground.
New Business Transformation: Build a full-chain ecosystem. In the new business areas, Weichai will focus on three directions: First, to create high-end battery products suitable for multiple scenarios; second, to build an efficient and collaborative digitalized development pattern; third, to accelerate the construction of the full-chain service capabilities for the aftermarket, forming a high-quality service ecosystem covering the entire product life cycle.
It is reported that Weichai is firmly advancing the new energy, internationalization, digitalization, aftermarket, large cylinder diameters, and non-road six strategic transformations. By leveraging overseas market expansion (such as the record high orders from KION Group) and diversified industrial layout (power systems, vehicles, agricultural machinery, smart logistics, etc.), it further enhances its ability to resist risks.
Conclusion:
From "scale expansion" to "quality and efficiency", the future of the transforming giants is promising.
The first half of 2025 financial report presents a clear picture of Weichai Power as a manufacturing giant in the process of transformation: its traditional business has a solid foundation and strong advantages, while its emerging businesses are accelerating breakthroughs and have abundant growth momentum. Currently, Weichai is shifting from the past "scale expansion" to "quality and efficiency" improvement. In the future, it needs to continuously increase investment in technological innovation to lead the development trend of China's commercial vehicle market with stronger core competitiveness. In the wave of industry transformation, the transformation path and growth potential of Weichai Power are worthy of anticipation.