“China’s domestic economy tends to remain stable after September and the heavy-duty truck market will recover as well,” said Liu Hanru, chairman of CAMC Hualing Automobile (Group) Co., Ltd., at CAMC semiannual business conference held recently. Liu believes that China’s heavy-duty truck industry will increase 10 percent this year and 20-30 percent next year, reported cvworld.cn.
According to Liu, the 8 percent increase in the first half can be mainly attributed to the impact of State IV emission standards implementation, and the market will return to smart growth starting from September.
“It is necessary to lower the expectation of economy increase given the market tendency of the first half,” said Liu. The newly appointed central government management tends to accelerate structure adjustment, industry transformation and upgrading, and accepts mild economy increase, according to Liu.
Liu also reminded dealers of CAMC Hualing to focus on the upcoming third plenary session of the 18th CPC Central Committee. “This session may determine the development mode of China’s economy in the next five to 10 years,” said Liu. He also predicts that China’s macro economy will recover in the next 5-10 years.
Thanks to the recovery of the overall heavy-duty truck market, CAMC Hualing sold 13,341 heavy-duty vehicles in the first half of the year, up 56 percent on a yearly basis with Xingma Special Purpose Vehicle realizing a 90 percent increase during the same period.
The Guangdong market has contributed most to CAMC’s large increase in the first half with three dealers selling more than 3,000 units of heavy-duty vehicles. Shenzhen market has posted 3,000 sales of slag trucks through June with 2,000 more demand in the second half.
“Environmental protection is an overall tendency,” said Liu. According to media reports, Chongqing will start disposing yellow-label vehicles (high-polluting vehicles) starting from September and Shanghai will prohibit yellow-label trucks to enter the city’s outer ring roads starting from May next year, and CAMC will get more opportunities in truck selling, said Liu.
The “Big Logistics & Big Leasing” strategy of CAMC Huliang also took effect in regions such as Shi Jiazhuang, Tianjin, Wuhan, Shanghai, Hainan, Sichuan and Ningxia and brought large profits to the company, said the chairman.
The sales target of CAMC Hualing is 25,000 units this year, and the company will expand to under developed markets in the second half. “As natural gas trucks blossom in Northern China market, the natural gas heavy-duty truck market of Southern China will become Hualing’s growing point,” said Liu.
CAMC will also promote its self-developed engine “Hanma Power” in the second half. With same price tags as joint venture engines, the Hanma Power engines of Hualing are more fuel-economic with higher profits ratio.
Liu also believes that road logistics will see larger prospect in the future. The main logistics mode is to use large logistics trucks to transport goods into the suburb, and then use medium and small logistic trucks to transport goods into central city areas.
Based on this analysis, CAMC Hualing will launch an all new model next year. “This model is positioned between Benz E-Class and C-Class. With a driving cabin of only 2.2 meters long, the medium truck will be smaller in size than the Hualing Star model and targets at the city logistics market,” said Liu.