CATL is building a new growth engine by deepening its presence in the commercial vehicle sector.

On November 27, FAW Jiefang announced that its wholly-owned subsidiary would invest 191 million yuan in their joint venture, Jiefang Times New Energy Technology Co., Ltd. CATL and newly introduced investor TELD New Energy Co., Ltd. also participated in the capital increase, bringing the total investment to 412 million yuan.

Data shows that in September, FAW Jiefang became the only "dual champion" in China's medium and heavy-duty truck market, with 13,700 traditional truck sales (25.7% market share) and 3,800 new energy truck sales (17.6% market share). The company recently launched a new energy long-haul transport solution to further promote the application of new energy technologies.

Morgan Stanley noted in a report that the rapidly growing electric truck market could offset weakness in the passenger vehicle segment and become a core driver of CATL's growth in the coming years. The bank predicts that truck electrification will help CATL achieve a 23% year-on-year increase in EV battery revenue by 2026.

As competition shifts from products to ecosystem integration, CATL and FAW Jiefang’s strengthened partnership—along with analysts' bullish outlook—signals that the commercial vehicle market is moving from the periphery to center stage, potentially reshaping expectations for the battery leader’s future growth.

**Strategic Collaboration Deepens: Building a "Vehicle-Battery-Grid" Ecosystem**

The capital injection will reshape Jiefang Times' ownership structure and resource allocation. Post-transaction, its registered capital will surge from 90 million yuan to 491 million yuan. FAW Jiefang and CATL will each hold 47.027%, while charging infrastructure leader TELD will take a 5.946% stake.

Established in March 2023 as a 50-50 joint venture, Jiefang Times focuses on full-lifecycle services for new energy commercial vehicles, including battery-swapping stations and green power trading.

The collaboration between FAW Jiefang and CATL has laid a solid foundation for scaling the new energy commercial vehicle market. The addition of TELD reflects FAW Jiefang’s strategic move to enhance charging infrastructure capabilities.

FAW Jiefang emphasized that the investment integrates its vehicle manufacturing expertise, CATL’s battery technology, and TELD’s charging network to create a synergistic "vehicle-battery-grid" ecosystem. This shift marks the evolution from product-centric competition to higher-level ecosystem rivalry.

**Heavy-Duty Truck Electrification Gains Momentum, Nearing 30% Penetration**

The electrification of commercial vehicles is accelerating. Morgan Stanley data shows that China’s electric heavy-duty truck sales surged 144% year-on-year in October 2025, with penetration reaching 29%—meaning one in three heavy-duty trucks sold was electric. The bank forecasts penetration will rise to 35% by 2026.

As China’s heavy-duty truck leader, FAW Jiefang’s 17.6% new energy market share in September underscores its successful transition. The electric light-duty truck segment also shows strong growth, with October 2025 sales up 40% year-on-year and cumulative sales up 92%.

Morgan Stanley expects electric light-duty truck penetration to rise from 10% in 2025 to 25% in 2026 and 38% in 2027. Correspondingly, battery demand from this segment is projected to grow from 30 GWh in 2025 to 150 GWh in 2027, offering suppliers volume and pricing upside.

**CATL: A Key Beneficiary of the Commercial Vehicle Wave**

The electrification of commercial vehicles opens new growth avenues for CATL, the world’s largest EV battery supplier. Analysts widely believe that robust truck electrification will mitigate concerns over slowing passenger EV growth.

Morgan Stanley highlights CATL’s technological and market leadership as key to capitalizing on this trend, projecting a 23% revenue increase in its EV battery business by 2026. The bank maintains an "Overweight" rating on CATL with a 490 yuan target price, implying 31% upside potential.

For investors, the commercial vehicle market is becoming an indispensable factor in assessing CATL’s future value.