Serving the World's Largest Emerging Automobile Market
Home > Farm Vehicle > Continued decline: China’s farm vehicle market in the first half of 2005

Continued decline: China’s farm vehicle market in the first half of 2005

China¡¯s farm vehicle market continued to experience a slow-down in the first half of 2005. Total production was 991,628 units, down 4.91 percent from the same period of last year, according to the latest statistics released by the Farm Vehicle Sub-Association under the China Association of Farm Machinery Industry. Sales fell by 5.10 percent, to 988,728 units.


 


Sales of three-wheelers, which take up 80 percent of the total farm truck market, were 773,815 units, down 3.88 percent. Sales of four-wheelers were down 9.25 percent, to a total of 214,913 units.


The implementation of the Road Safety Law of China, as well as rising costs of fuel and raw materials increased both production cost and the cost of using farm vehicles, weakening market demand. Some four-wheeler users turned to pickups and light trucks to take advantage of lower road maintenance fees.


 


Table 1. Production & Sales of Farm Vehicles in the First Half of 2005


                             Production                                        Sales


Vehicle Type       2004            2005         % Change     2004          2005         %Change      Share


Total                    1,042,781    991,628    -4.91            1,041,873   988,728     -5.10           100.00


Three-Wheel        804,098       775,371    -3.57               805,044   773,815     -3.88             78.26


Four-Wheel          238,683       216,257    -9.40               236,829   214,913     -9.25             21.74


 


China currently has 60 or so farm vehicle manufacturers. This is a tremendous drop off compared to the 500 during peak years. The top 10 manufacturers, especially in the three-wheel sector, dominate the market. The top 10 three-wheeler manufacturers had combined sales of 770,706 units, or 99.6 percent of the total.


 


The first two, Shifeng Group and Wuzheng Farm Vehicle Corp., both in Shandong Province, far outpaced their closest competitors, selling 366,396 and 167,889 units respectively for a combined market share of over 69 percent.


 


Table 2. Sales & Output of Top 10 Three- and Four-Wheelers in the First Half of 2005


Three-Wheel Make                                      Sales        %         Share     Output     %


Shifeng Group Corp. (Shandong)                  366,396      20.50    47.35       366,864    20.65


Wuzheng Farm Vehicle (Shandong)               167,889      33.75    21.70      167,998     33.84


Benma Group Corp. (Henan)                          67,984      202.02    8.79       69,162     207.25


Shuangli Group Corp. (Shandong)                   59,558      -15.83     7.70      59,750     -15.56


Beiqi Foton Automobile Co., Ltd. (Beijing)    42,731      -4.71       5.52       41,050     -8.46


Tianling Machinery Co., Ltd. (Shenyang)       25,189         -15.88  3.26       25,800     -13.84


Zhuoli Group Corp. (Shanxi)                          16,924        N/A       2.19      16,833        N/A


Feicai Group Corp. (Anhui)                           10,696      -90.94       1.38     10,934       -84.10


Lantuo Group Corp. (Lanzhou)                       9,875          12.99    1.28       9,920       13.50


Ningguo Jiatong Machinery (Anhui)                3,464         N/A       0.45       3,700       N/A


Top 10 Three-Wheel Total                           770,706       4.30       99.60      772,011    11.96


 


Four-Wheel Make                                       Sales       %           Share        Output        %


Shifeng Group Corp. (Shandong)                  44,521      3.64        20.72          44,543      3.75


Wuzheng Farm Vehicle (Shandong)               26,322      68.19    12.25           26,278     68.48


Nanjun Vehicle Manufacturing Co., Ltd.      13,809       2.14        6.43          13,906        3.01


Dong’an Heibao Co., Ltd.                              12,609       N/A       5.87           11,860        N/A


Benma Group Corp. (Henan)                        11,511      N/A       5.36            11,780       N/A


Jinbei Vehicle Manufacturing Group Corp.  10,569     28.44        4.92          10,707      27.66


Yinhe Automobile Group Corp.                    10,149      N/A       4.72           10,639        N/A


Zhengyu Electronic & Machinery (Zhejiang)  9,930    -23.64      4.62             9,989      -17.64


Wangpai Vehicle Co., Ltd.                               9,890     4.49         4.60           10,117     10.93


Hanggua Electronic & Machinery (Zhejiang)   9,808    -1.48        4.56             9,621      -2.08


Top 10 Four-Wheel Total                            159,118    41.09     74.04          159,440     43.01


Source: CBU-Autostats


 


As the country¡¯s leading farm-vehicle manufacturing province, Shandong accounted for 82.05 percent of the country¡¯s output of three-wheelers and 44.31 percent of the country¡¯s four-wheelers. Shandong is also the leading regional market of farm vehicles, taking up 19.71 percent of the country¡¯s three-wheeler sales and 11.42 percent of four-wheeler sales.


 


As the farm vehicle market continues to shrink, many manufactures are turning into other businesses. Some are moving up to the automobile sector. Some others are changing into remodeled transportation vehicles, engineering machinery and farm machinery. Analysts believe that China¡¯s farm vehicle sector will gradually merge into the automobile industry.

Leave a Reply