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After the Spring Festival, news about Cummins' latest joint venture plans spread quickly. According to a source close to Cummins executives, following a successful partnership with Shaanxi Automobile Group, the American engine giant has recently started discussions with Weichai Power, China's leading manufacturer of high-speed, high-horsepower diesel engines. The goal is to explore a joint venture that would allow Cummins to expand its dominant presence in China’s heavy-duty truck market. Weichai Power currently lacks engines that meet Euro III emission standards, making this collaboration particularly strategic for both parties.
In the light truck segment, Cummins is also actively pursuing partnerships. It has been in extensive talks with Beiqi Foton, one of China’s top light truck manufacturers, to establish a joint venture focused on light truck engines. Cummins aims to leverage Foton’s strong sales position in the light truck market, which has earned it the title of champion in this sector.
Cummins’ growing influence across China’s truck market has begun to challenge international giants like DaimlerChrysler and MAN, who have been hesitant to fully commit to localized production. Their resistance highlights the increasing competition from Cummins, which is rapidly expanding its footprint in the Chinese market.
The potential joint venture with Weichai Power is especially significant. As the largest diesel engine manufacturer in China, Weichai holds over 80% of the heavy truck engine market share. If the deal goes through, Cummins could supply engines to nearly 80% of the heavy trucks sold in China. However, details remain unclear. Weichai’s deputy general manager, Chen Dazhao, declined to comment on the specifics, while Cummins spokesperson Yang Fang stated that the discussions are part of normal business relations between parent companies, not necessarily indicating an official joint venture.
Industry sources suggest that the relationship between Sinotruk and Weichai Power plays a key role in these negotiations. Sinotruk, a major customer of Weichai Power, accounts for over 40% of its sales. Although Sinotruk is building its own engine plant, industry experts believe it is unlikely to match Weichai’s scale due to government restrictions on new automotive projects.
If Cummins successfully partners with Weichai Power, it will solidify its position as a top engine supplier in China’s heavy truck market, second only to Sinotruk. With only Chongqing Zhongqi remaining as an independent player, the market is becoming increasingly dominated by Cummins and its partners.
In the light truck segment, Cummins has been working closely with Beiqi Foton for over six months on a joint venture for light-duty truck engines. Zhao Jingguang of Beiqi Foton confirmed that the talks are ongoing, emphasizing that a collaboration with Cummins would complete Foton’s commercial vehicle strategy. With Beiqi Foton being the largest domestic light truck manufacturer, the partnership makes strategic sense for Cummins, which is eager to expand its engine offerings in this segment.
Despite challenges, including existing joint ventures between Beiqi Foton and DaimlerChrysler, Cummins continues to push forward. Its approach of partnering with strong local players rather than training ones has proven effective. With over 270,000 light trucks sold in 2005, Beiqi Foton remains a prime target for Cummins.
Cummins’ expansion in China is part of a broader strategy to secure a dominant position in both heavy and light truck markets. While foreign automakers hesitate, Cummins is taking advantage of the opportunity to strengthen its foothold through strategic alliances. With potential partnerships with Weichai Power, Beiqi Foton, Dongfeng, and others, Cummins is well-positioned to become the leading engine supplier in China’s truck industry.
October 06, 2025