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Market Analysis of China Heavy Trucks in Feb. 2011

www.chinaspv.com:  299,756 commercial vehicles were sold out in Feb. by eighty China commercial vehicle companies, up 11.59%. And sales volumes in Jan. and Feb. amounted to 659,039 units, up 6.81%.

Part One: Sales of wagons increased dramatically.
  
Market needs for heavy trucks increased steadily in the first two months this year. Sales of heavy trucks amounted to 75,271 units, down 11.6% over Jan., up 5.56% over last year. In terms of segment markets, sales of wagons increased a lot, while sales of tractors and chassis decreased. Production and sales volumes of heavy-duty cargo trucks amounted to 22,688 units and 24,686 units, up 60.7% and 105.44%. Production and sales volumes of chassis and driving cabins were 32,846 units and 30,245 units, down 11.34% and 5.77%. Production and sales volumes of semi-trailer tractors were 19,400 units and 20,340 units, down 34.77% and 25.21%.
  
Sales of heavy trucks amounted to 160,406 units in Jan. and Feb., up 7.1%. The markets needs are still rather strong in future, but sales of dumpers and special purpose vehicles may decrease. Production volumes of complete heavy trucks, non-complete heavy trucks, and semi-trailer tractors were 49,916 units, 85,894 units and 45,750 units, up 63.17%, 10.14% and -21.93%; and sales were 49,708 units, 63,831 units, and 42,705 units, up 95.26%, 6.39% and -29.31%.

Figure one: Sales analysis of heavy trucks between Feb. 2011 and 2010

Part Two: Sales of FAW decreased greatly

According to statistics from CAAM, sales of China heavy trucks are still increasing, and the ranks of top five truck manufacturers changed. Market shares for FAW Jiefang decreased by 7.49% from previous year’s 25.98%; shares for Sinotruk decreased by 1.4% from 21.18% in 2010; market shares for Dongfeng increased by 0.79%; market shares of Shaanxi Auto decreased by 1.44% from 11.07%, and shares for Foton increased by 0.45%.

Sales of trucks increased by 11.07%, and sales of second level China truck builders increased dramatically, such as Beiben and JAC. And the biggest reason for Jiefang sliding shares can be contributed to their decreasing sales of tractors. 

Part Three: Sales of heavy trucks may be infected by “Fuel Consumption Regulation”

The new regulation on fuel consumption will influence sales volumes of some heavy truck manufacturers, and this may be embodied in March and April. However, the sales in the first season will be steady and the sales decrease on dumpers and special purpose vehicles as well as tractors may not influence market needs.

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