Truck Exports Hit Record High in First QuarterⅠ

Date:2011-05-31 Source:www.chinaspv.com

www.chinaspv.com: It is all known that export ratio is a main indicator to judge if one country is a major auto power. Last year, export ratio for commercial vehicles was 6.09%, higher than the ratio of 2.06% in China auto export. And only over 20% export ratio can be called a major auto country.

　　
Table One: Sales of export of trucks in 2010 and 2009

	Sales in 2010	Sales in 2009	Sales growth	Export volumes in 2010	Export volumes in 2009	Export growth	Export shares in 2010	Export shares in 2009	Shares growth
Truck	3,861,091	2,959,425	30.47	232,957	162,573	42.98	6.02	5.49	0.53
Wagon	2,831,295	2,250,143	25.83	203,957	141,202	44.44	7.20	6.28	0.93
Non complete vehicles	675,173	498,176	35.53	8,618	12,101	-28.78	1.28	2.43	-1.15
Semi trailers	354,623	211,106	67.98	19,864	9,270	114.28	5.60	4.39	1.21

　
Part One: Market analysis of China truck markets in the first season
　　
1. Recovering growth continues in China truck markets

We can see from Table 3 and 4 that export volumes of all truck products were surging in the first season, apart from wagons chassis. And export ratio of wagons and semi trailers recovered largely. We can see that China auto export has passed the toughest period.
　　
We can contribute this to three reasons: the first is recovering world economy including international auto makers; the second is that China central government continues to improve auto export by many policies, including to stabilize export rebates and to increase financing support; and the third reason is that foreign enterprises increased investment on spare and auto industry in China.

　　
Table Two: Sales of export comparison on truck segment markets in the first season

	Export volumes in Jan.-March 2011	Export volumes in Jan.-March 2010	Market shares in Jan.-March 2011	Market shares in Jan.-March 2010	Shares growth %
Trucks	64,050	44,655	100	100	0
Wagons	57,063	39,279	89.09	87.96	1.13
Non complete vehicles	1,869	2,214	2.92	4.96	-2.04
Semi trailers	5,118	3,162	7.99	7.08	0.91

2. Export of light trucks and mini trucks dominate wagons markets
　　
Export of wagons was 89.09% among all the truck export in the first season, up 45.28%. Because the main target markets for China trucks are Algeria, Vietnam, Syria, Iran, Brazil, Chile, and Peru etc. developing countries, and customers from these countries prefer importing complete vehicles.

Figure One: China truck sales, export, and shares 2004-2010

　　
Among the nineteen main China truck export companies, Dongfeng Commercial Vehicle Company, Sinotruk, Beiben, and FAW mainly produce and export heavy trucks, Beiqi Foton and JAC also produce some heavy trucks. Most other enterprises listed here produce and export light trucks and mini trucks. 37,298 wagons were exported in Jan. and Feb., up 54.00%. And the sales revenues amounted to 332,400,000 USD, up 12.28%.
　　
Export growth of the top three companies were higher than the average rates, partially due to their large base volumes, especially Dongfeng Motor, their export took nearly 20%, and 12.30% of Dongfeng vehicles were exported.

Dongfeng Motor Limited Company
　　
Dongfeng Motor is composed of Dongfeng Commercial Vehicles Company, mainly producing medium and heavy trucks and DFAC mainly producing light trucks. The parent company, DFL, pay much attention on exporting in recent years. They have set overseas department at the very beginning, and they also raise slogan of "China Dongfeng, World Dongfeng" to make export volumes of trucks to 20% of all sales volumes in five to ten years.
　　
In recent years, Dongfeng overseas markets are mainly composed of five areas, namely, Southeast Asia, including Indonesia, Malaysia and Vietnam; Middle East and West Asia area including Iran, UAE and Syria; Middle and South Africa including Brazil, Argentina and Chile; Russia and Africa area mainly including South Africa and Egypt. Apart from complete vehicle export and CKD, Dongfeng is trying to localize R&D and production in overseas markets.
　　　
Dongfeng Limited Company is planning to establish their own assembly plants in key areas, for example, Dongfeng Commercial Vehicle chose Iran and Dongfeng Motor Shares is optimistic to set production base in Indonesia.