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Since the beginning of this year, sales in the domestic heavy truck market have been booming, sweeping down the downturn since the second half of 2008. Coupled with the low base of the same period last year, many companies have seen growth of more than 100%, and even 200% growth.
Among them, Dongfeng Commercial Vehicle Co., Ltd. sold 21,649 heavy-duty vehicles in April, and cumulatively sold 70,373 units from January to April, an increase of 196% year-on-year; Foton Motor also sold 12,195 units of medium- and heavy-duty cards in April, and accumulated sales of nearly 40,000 from January to April. Vehicles, an increase of 142.7% year-on-year; in the first quarter of this year, FAW's liberation increased by 274.5% year-on-year, and Valin's SAIC Motor's year-on-year increase of 218.2%...
Some industry analysts will also increase the forecast for the heavy truck industry this year to about 30% from the previous 15%.
While ushering in the rare spurt growth, the heavy-duty truck industry has also ushered in several new faces this year. In recent years, the relatively stable competitive landscape will also face new changes.
Strong recovery
As the growth rate of the passenger vehicle market has gradually declined, the domestic commercial vehicle growth market has begun to exert force. Among them, heavy truck growth is particularly hot.
From January to April, the national vehicle sales volume was 6.166 million units, an increase of 61% over the same period of last year. The increase rate was 11 percentage points lower than the 72% in the first quarter, but commercial vehicles performed outstandingly. Among them, heavy truck sales amounted to 383,000 units in January-April, which was a year-on-year increase. 132%.
China National Heavy Duty Truck sold 13,390 vehicles in April. In the first four months of this year, the company sold a total of 35,544 vehicles, an increase of 48.56% year-on-year. In the first few months of this year, such growth was relatively low. However, this rate is already higher than the growth rate of the enterprises with the highest growth rates last year.
In 2009, the national sales volume of heavy trucks was 630,000, an increase of 17% year-on-year. Among them, the fastest-increasing sales of heavy trucks were Beiqi Foton (44.00%) and Hualing (42.43%), while other companies' growth rates were mostly below 20%.
In 2010, the heavy-duty truck industry suddenly made a lot of efforts, and most of the companies achieved higher-than-expected growth. As the growth rate is as high as 100% or even 200%, sales of Shaanxi Auto, Hualing Heavy Truck and other companies in the first quarter have already approached half of last year's sales.
A Beijing-based dealer representing the Liberation Brand and China National Heavy Duty Truck said that the recent sales of vehicles were very good. There was a lot of "blowout" momentum in previous years. "It was originally expected that the heavy-duty truck market will improve this year, but did not expect it to be so good."
Zhao Jingguang, Secretary of the Party Committee of Foton Motor Co., Ltd., said that since the beginning of this year, Foton Motor has been working overtime to increase production capacity at full capacity. “We were interested in producing more products in the off-season last year, but sales were very good in the first few months of this year. Even if we had reserves in production last year, this year we have been working two shifts per day and working overtime.â€
The pulling action of the country’s 4 trillion investment has clearly manifested this year, which has a clear leading role in the sales of engineering dump trucks in heavy trucks. At the same time, the macroeconomic situation at home and abroad is stable, and the road freight market is gradually recovering. The demand for logistics vehicles is also growing.
According to Zeng Zhiling, a senior analyst in the Asia-Pacific region of IHS Global Insight, the recent strong recovery in the heavy-duty truck industry was mainly due to the economic recovery and improved export conditions.
"In the recent high-growth heavy truck industry, the most obvious growth momentum is for container trucks for logistics. Logistics trucks are closely related to economic conditions and exports." Zeng Zhiling said.
The demand for replacement of heavy trucks is also a factor that cannot be ignored. China's heavy-duty truck market has ushered in the first peak of growth in 2003. According to the service life of heavy-duty trucks for 5 to 8 years, these heavy-duty trucks are currently entering a centralized replacement period.
Based on these factors, some research institutions have recently raised their growth expectations for the heavy-duty truck industry this year. In the recently released investment report, CICC raised its forecast for heavy truck sales in 2010 to 838,000 units, a year-on-year growth of 31%, which is higher than the market's expected 10% to 15%. The phase-out research report is also optimistic about this year's heavy truck growth, and it is expected that the growth rate will be 21%.
However, some analysts are not so optimistic. Zeng Zhiling still maintains a growth rate of 10% to 15%. “There are still many uncertainties in the second half of the year. For example, the current state’s regulation of the real estate market may affect the demand for engineering vehicles. The correlation index between quantity and export volume is also close to the historical high, and there is little room for further growth in the second half of this year."
Strong recovery of heavy trucks, new franchisees eager to try