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Friday, August 23, 2013

Latest Report:China Heavy Truck Industry Report, 2013

China Heavy Truck Industry Report 2013

With the fading effect of a 4 trillion yuan stimulus package as well as the slowdown of Chinese economic growth rate, the demand in China heavy truck market has kept declining since 2011. In 2012, the sales volume of heavy trucks in China was no more than 636,000 units, down 27.78% over 2011.

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In H12013, the heavy truck industry of China saw pickup in terms of both output and sales volume, with the sales volume, in particular, increasing by 8.36% year-on-year. The contributing reasons are as follows: a) China’s investment in infrastructure construction saw a steady growth rate; b) the requirements for updating heavy trucks which are on their last legs since 2008-2010 when witnessed a spike in sales; c) the release of National emission standard brought with orders for consumption in advance. 

However, from the perspective of the overall situation all the year round, China’s sales of heavy truck is not so optimistic, with the expected growth in sales volume by around 6%, against the backdrop of a series of adverse factors such as slackened macro-economic situation as a whole, declining demand for coal power and the growth dive of highway freight volume.  

In 2011-2012, the output of China’s top five heavy truck producers fell to varying degrees. In H1 2013, with the sole exception of SINOTRUK whose output declined slightly by 3%, the rest four ones saw pickup in output to various degrees.  

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Dongfeng Automobile Co., Ltd.  -- in 2012, the company saw steep drop in both output and sales volume of heavy trucks, with the figure of 119,649 and 130,830, respectively, down 30.52% year-on-year and 29.65% year-on-year. In 2013H1, the company’s output and sales volume of heavy trucks turned around for the better, up 12% year-on-year and 9% year-on-year, respectively. In Sep.2013, the 80,000 units/a capacity of its Shiyan Heavy Truck Base is expected to fully put into production.




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