EGR (Exhaust Gas Recirculation) is becoming one of the key drivers shaping the industry. An analyst noted, “The price advantage of EGR technology exceeds 10,000 yuan.” Under the pressure of cost-cutting, companies using EGR have gained a competitive edge. **The EGR Camp Grows** In September, major manufacturers began focusing on selling National III models. FAW reported that 70 to 80% of its heavy trucks sold in September were National III compliant. Similarly, Shaanxi Automobile saw a significant jump, with 70–80% of its sales being National III vehicles, up from around 50% in August. CNHTC also reported that 80% of its heavy truck sales in September were EGR-based National III models. From this point on, the industry truly entered the era of National III compliance. From a global perspective, the National III emission standard involves several technologies: high-pressure common rail systems, single-pump technology, and pump-nozzle systems. Most engine manufacturers like Weichai, Shangchai, Yuchai, Chaochao, Cummins, Xichai, and Dichai have adopted common rail and single-pump technologies. However, China National Heavy Duty Truck (CNHTC) took a different route—using EGR technology, which proved to be more cost-effective. According to Qing Qingtian, deputy general manager of CNHTC (Hong Kong), National III trucks using EGR technology are about 10,000 yuan more expensive than National II models, while those using high-pressure common rail can cost up to 20,000 yuan more. Additionally, EGR engines are more adaptable to local conditions and have lower maintenance costs, making them ideal for the Chinese market. Industry competitors believe that by the end of the year, the National III market will be dominated by EGR engines, with high-pressure common rail systems struggling to become mainstream. Despite Bosch recently reducing the price of its electronically controlled common rail system by about 5,000 yuan per unit, it remains significantly more expensive than EGR solutions. Companies such as Dongfeng Liuzhou Automobile, Hualing, Jianghuai Geerfa, and others have shifted their focus to EGR-powered heavy trucks. The Panchao Diesel Engine Group is also expecting mass production of Weichai EGR engines soon. Meanwhile, the "secret" behind EGR engines from various supporting manufacturers has started to come into the spotlight. For instance, FAW’s R&D team has developed an EGR III engine that has passed bench tests and is now applying for type approval. It is expected to go into production shortly. Other companies, including Yuchai, Shangchai, and Xichai, are also working on EGR engines, with development cycles ranging from 3 to 6 months. These engines are expected to be available by the end of the year, further expanding the EGR camp. **Heavy Truck Hits Dongfeng** The difference in EGR technology has led to significant changes in the industry. With EGR at the forefront, Chinese heavy truck manufacturers are now challenging the traditional leaders, especially Dongfeng. According to data from the China Association of Automobile Manufacturers, FAW maintained the top position with 94,853 units sold between January and August. Dongfeng and CNHTC sold 89,226 and 85,049 units respectively, ranking second and third. However, in September, CNHTC outperformed both, with sales far exceeding those of Dongfeng and FAW. By the first nine months of the year, the gap between CNHTC and Dongfeng was less than 1,000 units, and the gap with FAW had shrunk to around 6,000. This suggests that CNHTC is likely to overtake Dongfeng in October and possibly take the second spot in the industry. CNHTC sold nearly 95,000 heavy trucks from January to September this year and aims to reach 125,000 units by year-end. In fact, according to international standards defining real heavy trucks as those over 16 tons, CNHTC surpassed both FAW and Dongfeng last year, securing the top position in the industry. View related topics: China National Heavy Duty Truck Breaks Monthly Sales Record for National Heavy Truck Industry

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