BEIJING – Heavy-duty truck sales in China slipped 31 percent yearly and 13 percent monthly to 51,000 units in May, according to the latest report of cvworld.cn.
Dongfeng Commercial Vehicle Co., Ltd. and China National Heavy-Duty Truck Group Corp. (CNHTC) sold 11,500 and 10,000 heavy-duty trucks in May, down 24 and 19 percent, and lower than the industry average. FAW Jiefang Automobile Co., Ltd., Shaanxi Heavy-Duty Truck Co., Ltd. and Beiqi-Foton Motor Co., Ltd., on the other hand, saw sales declines of 40, 30 and 38 percent to 7,200, 7,000 and 7,100 units. Jianghuai Automobile Co., Ltd. (JAC) sold 2,300 units last month, a decrease of 43 percent. Hualing Xingma Automobile (Group) Co., Ltd. (CAMC Hualing) posted sales of 1,700 units, down 16 percent, which was the smallest decrease among major heavy-duty truck makers. Beiben Heavy-Duty Truck Co., Ltd. and SAIC-IVECO-Hongyan Commercial Vehicle Co., Ltd. registered sales of 800 and 902 units respectively, a decline of 31 and 61 percent on a yearly basis.
Sluggish fixed assets investment and slowing economic growth led to slumping end user requests and gloomy heavy-duty truck market for four consecutive months. Engineering construction investments in many regions of China have been suspended with many heavy-duty trucks on the shelf, which has led to low new vehicle consumption. The National Development and Reform Commission (NDRC) approved 11 infrastructure construction projects in three batches with total investment of ¥467 billion ($75 billion). The NDRC also approved 1,043 public-private-partnership (PPP) projects from 29 provinces and cities with total investment of ¥1.97 trillion. However, the above investment dragging methods will not boost the heavy-duty truck market significantly until the third and fourth quarter of the year.
The country posted sales of 244,300 heavy-duty trucks in the first five months, down 33 percent year-on-year. Dongfeng still dominates the industry with 54,900 units’ sales, a 24 percent decrease. CNHTC ranked the second with sales of 45,500 units, a decrease of 25 percent. FAW sold 36,000 units, down 39 percent. Shaanxi Auto and Beiqi-Foton dropped 33 and 41 percent to 34,100 and 32,100 units. JAC and CAMC Hualing posted sales of 14,300 and 7,552 units, down 26 and 27 percent. Beiben and SAIC-IVECO-Hongyan saw sales decline of 25 and 71 percent to 4,126 and 3,912 units.