DeepWay, the new energy heavy truck startup jointly founded by Baidu and Lionbridge, has officially submitted its prospectus to the Hong Kong Stock Exchange, targeting a Main Board listing. CICC and CMB International are acting as joint sponsors.
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If successful, DeepWay would become the first intelligent heavy truck startup to go public in Hong Kong, signaling a major milestone for the commercial EV sector.
China’s transition to new energy vehicles has fueled a boom in passenger cars, with brands like Nio, Xpeng, and Li Auto gaining broad recognition. By contrast, the commercial vehicle segment, with its higher technical barriers, complex applications, and supply chain demands, has seen only tentative moves from new entrants. DeepWay, founded in December 2020, has emerged as a leading player among these newcomers.
According to China Insights Consultancy, DeepWay ranked tenth globally in new energy heavy truck sales in 2024, with a 2.7% market share. Its “forward-thinking design” philosophy has contributed to rapid growth, with revenue reaching $59 million in 2023, $273 million in 2024, and $209 million in the first half of 2025—a year-on-year increase of 363% in 2024 and nearly 98% in H1 2025.
Yet, like many emerging players, DeepWay is still unprofitable. Losses totaled approximately $236 million from 2022 through H1 2025, underscoring the tension between rapid expansion and financial sustainability.
Nearly all revenue comes from truck sales, accounting for more than 99% of total income, while component sales remain minimal and smart trucking solutions are still in trial phases.
The IPO prospectus shows gross margins of just 0.4% in 2023 and 0.5% in 2024, improving to 2.9% in H1 2025. By comparison, traditional heavy-duty trucks typically maintain gross margins of 10%–15%. Ramp-up costs, licensing fees for autonomous tech, and procurement costs for batteries and key components pushed DeepWay’s cost of sales close to 97%.
Industry-wide price wars have compounded margin pressure. Prices for electric heavy-duty trucks have fallen sharply; 400 kWh models dropped from $97,000 to around $63,000 in late 2024. DeepWay’s suggested retail prices range from $65,000 to $97,000, depending on model and configuration.
Customer concentration is significant. In 2024, the top five clients—mainly logistics companies, port operators, and battery leasing firms—accounted for $139 million or 51% of total revenue, with the largest customer contributing nearly 25%. On the supplier side, the top five suppliers accounted for 92% of procurement, with the largest supplying over 60%. High concentration could limit negotiation leverage in a margin-sensitive industry.
Despite challenges, DeepWay’s trucks offer lifecycle costs 18.7% lower than diesel trucks and 4.9% lower than diesel-to-electric conversions. R&D investment has been substantial: $32 million in 2022, $49 million in 2023, $51 million in 2024, and $25 million in H1 2025, focused on “three-electric” systems—battery, electric drive, and electronic control—and autonomous driving technology.
In-house development helps control costs and optimize energy efficiency. DeepWay’s trucks experience only a 20% winter range reduction versus 40% for competitors. The company has also developed the Tianji intelligent driving suite, covering assisted driving, platoon transport, and single-vehicle intelligence, with future plans for fully driverless trucks.
DeepWay relies on contract manufacturing with OEMs like Jianghuai and Shandong Leichi, lacking its own production license. Core autonomous technologies, including Baidu Apollo, are integrated via licensing agreements. This positions DeepWay more as a high-end manufacturing and tech integrator than a conventional truck maker.
China’s new energy heavy truck market is growing rapidly but consolidating. From January to July 2025, nationwide sales reached 82,200 units, up 191% year-on-year, with market penetration rising from 5.7% in 2023 to 26.1%. Yet the top five companies now command 71% of the market, leaving limited room for new entrants. Traditional giants such as SANY Heavy Truck, XCMG, and FAW Jiefang dominate, while DeepWay has sold roughly 6,400 units cumulatively since inception.
DeepWay faces entrenched incumbents and a gap between its tech narrative and customer priorities. Fleet operators prioritize total cost of ownership, reliability, and maintenance efficiency over autonomous features, which remain largely aspirational.
Nevertheless, DeepWay continues to push forward. It is integrating its three-electric systems, expanding overseas to Singapore, Thailand, and the UAE, and preparing right-hand drive models. The Hong Kong IPO could provide capital to scale production, accelerate R&D, and strengthen its competitive position.
If DeepWay successfully navigates these challenges, it could pave the way for other Chinese electric heavy-duty truck startups and extend the country’s reach in global commercial EV markets.
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