Heavy-duty Trucks Maintained a Solid Growth Against the Trend

Date:2020-10-01

In August, China sold a total of 12,8000 units of heavy-duty trucks, 75 percent higher than the year-ago month, according to the latest data. Between January and August, this market represented 1,083,500 units, an increase of 35 percent compared with the first eight months of 2019, representing a net sales growth of roughly 280,000 units.

The automotive industry has been facing a sharp drop in demand this year. Nonetheless, amidst this gloomy business environment, there are several truck makers which are witnessing growth. One such maker is SINOTRUK. SINOTRUK posts a 80% year-on-year growth in August with 20, 000 units sold. Its sales has kept above 20,000 units for six consecutive months since March. The other industry leading enterprise, FAW Jiefang, saw a 74% year-on-year growth at 27,600 units in August. During the January to August period, its market share has grown to 27% with sales of 29,310 units and 41% year-on-year growth.

Insiders generally agree that the growth are influenced by the following factors. Firstly, the demand for heavy-duty truck is increasing due to vehicles not passing the emission standards are gradually phased out. Next, tighter rules against overloading of trucks in urban and suburban areas stimulates additional demand for light-weight trucks. Firnally, most of the construction projects are delayed as a result of the novel coronavirus outbreak, which has a backward impact on the demand for engineering trucks.