Geely-backed Hanma Technology to stop producing oil-fueled vehicles in Dec. 2025

Shanghai (Gasgoo)- Hanma Technology Group Co., Ltd. (“Hanma Technology”), a subsidiary of Zhejiang Geely New Energy Commercial Vehicle Group, announced on June 15 it would discontinue the production of traditional oil-fueled complete vehicles in December 2025, and only produce new energy and clean energy vehicles in the future, including all-electric vehicles, hybrid electric vehicles, methanol-fueled vehicles, and fuel cell vehicles.

While bowing out of production, the commercial vehicle manufacturer will continue producing and supplying the auto parts used in fossil-fueled vehicles, and offering after-sale services to existing oil-fueled car buyers.

Hanma Technology's all-electric agitating lorry; photo credit: Hanma Technology

At the same time, the company warned of relevant uncertainties and risks. In the Jan.-May period of 2022, Hanma Technology sold 1,177 new energy vehicles (“NEV”), which accounted for 41.23% of the company’s total auto sales. Under the NEV-only route, the automaker’s NEV sales might be adversely affected by the market competition landscape and demands, and the company might face risks of lower-than-expected NEV sales.

With 1,678 units sold, oil-fueled vehicle sales made up 58.77% of Hanma Technology’s total auto sales for the first five months of the year. After production ceases in December 2025, the simpler business structure might have a negative effect on the company’s anti-risk capability if the NEV industry does not significantly flourish.

In addition, the NEV transition is likely to decrease the company’s existing share in the traditional oil-fueled vehicle market, which might have a negative impact on the short-term operational and financial performances.