Truck Exports Hit Record High in First Quarter Ⅲ

www.chinatrucks.com: Part Three: Export market for non-complete wagons decreasing
　　
There were only 1,869 non-complete wagons were exported in the first season, down 15.58%, and its shares among trucks decreased 2.04%. And this is also the only vehicle model that decreased last year too. And this can contribute to the likeness of foreign buyers for importing complete vehicles at a time.

Table: Export volumes and shares of non-complete wagons in the 1st season

It can be seen from above table that it is mainly medium and heavy truck makers to produce non-complete wagons and the main export vehicles are heavy-duty non-complete vehicles. The above five export markets are all developing countries, and their market needs for non-complete wagons are decreasing as the end of fast needs for infrastructure construction after the financial crisis.
　
Shaanxi Auto took 64.47% of the exported non-complete wagons, much high than the total shares of Dongfeng, FAW and Sinotruk. It seemed like the three truck giants are trying to give up such truck segment markets.
　　
Shaanxi Auto always focuses on exploring overseas markets by non-complete vehicles and semi trailers. Shaanxi Auto has developed different products for Russia, Middle East and some Southeast Asia countries.
　
Part Four: Sales of semi trailers increasing
　　
We can see that semi trailers markets are much different than last year. Both domestic and foreign markets were surging last year, and this year, domestic market needs withered, while overseas needs are still booming. This can be attributed to three reasons; firstly, the GDP of the first quarter in China was 9.7%, lower than 10.3% of last year. So highway hauls and ports throughput was decreasing. The second is that sales of tractors were booming last year, which overdrafts sales this year. The third is that overseas market needs are still recovering and many trucks are needed for logistics and infrastructures. Truck industry features economies of scale, so there is no truck industry in some Middle East, Asia, South America and African countries. Compared with trucks in developed countries, China trucks have higher cost performance ratio. With improvement of HOWO-A7, Dongfeng Kingland and FAW J6 trucks, China trucks competitiveness are increasing year by year.

Table: Export volumes and shares of semi trailers in the 1st season

　
Growth of semi trailers produced by Sinotruk and Beiqi Foton amounted to 657.75% and 284.44%. The overseas strategies of Beiqi Foton can be summarized below:
　
Foton released their "5+3" strategy right after Jan. 1st, among which, 5 refers to Russia, India, Brazil, Mexico and Indonesia, in which Foton will establish plants with annual production volumes of 100,000 vehicles; 3 refers to North America, European Union and Japan, Foton is trying to make breakthrough in these three regions in the next five years. Their targets are to export half a million trucks till 2015, taking 28% of all their sales volumes.
　　
Foton made detailed plan for their products, too. Apart from their current medium and heavy trucks, light commercial vehicles and vans, Foton will also produce mini and large vans, sedans, large MPVs.

Part Five: Predication of China truck industry overseas markets in 2011
　　
Many experts predict that China economy will be down this year, together with the surging prices of steels and oil, we can see that sales volumes of trucks in the third quarter will be similar to that of the first quarter.

Table: sales volumes from 2007-2010 and predicts for 2011

On the contrary, more and more China trucks will be exported to overseas markets, for recovering world economy, booming consumption, China steady export rebates and supports on financing, foreign auto parts giant investment in China, as well as China trucks higher cost performance ratio. It can be predicted that export growth of trucks will be higher than the figure in the first quarter of 43.43%, and 342,000 to 349,000 trucks will be exported in 2011, up 47% to 50%.
　　
However, China truck exports may be affected by four reasons, namely, the cost performance ratio with more expensive RMB, stronger trade protectionism in Russia, Brazil and Turkey etc. countries, disorder competition in China truck brands, brand strategy vacancy of many spare parts brands.