In-depth analysis of China truck markets from Jan. to June Ⅱ

www.chinatrucks.com: Factors influencing truck markets from Jan. to June

The main reasons are macro economy environments and policy and regulations, and the former influences more on medium and heavy trucks and the latter influences more light and mini trucks.

Economic slowdown is the main reason for decreasing sales of medium and heavy trucks.

GDP decreased by 1.5% over last year, as released by State Statistics Bureau on July 13.
　　
The fixed assets amount to 12,456,700,000,000 Yuan from Jan. to June, up 25.6%. Total volume of retail sales of social consumer goods are 8,583,300,000,000 Yuan, up 16.8%. The total import and export value are 1,703,670,000,000 USD, up 25.8%. The decreasing growth of fixed assets, total volume of retail sales of social consumer goods, and import and export value led to slower growth of highway freight volume, highway freight quantity and port container throughput, and sales of tractors were largely affected.
　　
Sales of light trucks were affected by withdraw of promotion sales of vehicles in rural areas.
　　
The policy started in March 2009, and sales of light trucks and cargo vans were much stimulated by the policy.
　　
The CPI in the first half year increased by 5.4%, and the figure was 6.4% in June, hitting record high in three years.
　　
China imports and exports growth decreased a lot this year, so did auto industry. 381,102 auto were exported in the first half year, up 56.99%, 13.54% less than last year. And 144,136 trucks were exported, up 35.03%, 4.11% less over last year.
　　
Economy recoveries were rather fast in the first half year in 2010, together with 4,000 billion RMB stimulation package, and sales of trucks were rather hot last year. And sales of trucks was a rather high base number.

So when we analyze the truck markets in the first half year, sales of trucks were not that bad. And sales of heavy cargo vans and medium chassis increased by 13%.
　
Sales and market shares of major truck makers Jan. to June 2010 and 2011
 

　
Sales and its growth of vans, cargo chassis and semi-trailer tractor
 


We can see from above table that market concentration is getting decreased, and shares of top three truck makers, Dongfeng, Sinotruk and FAW, reduced a lot.
　
It is well known in China truck industry that Dongfeng, Sinotruk and FAW dominate on sales of heavy truck chassis, heavy cargo vans and tractors. Sales of Dongfeng truck chassis is similar to that of last year, sales of heavy cargo vans increased by 63.41%, and sales decrease of tractors were not as big as FAW and Sinotruk, so sales of Dongfeng heavy trucks top China truck industry in the first half year. In recent years, the ranks in top three were always shifting but the gap was rather small, and this year sales of Dongfeng are 3% higher than that of Sinotruk and FAW.

Rankings of top China heavy truck makers in ten years

Sales decrease of FAW tractors were much more than Sinotruk and Dongfengin the first half year, and this is used to their advantageous field. And FAW sales of cargo vans and truck chassis were also decreasing largely more the average level in truck industry. And their sales of heavy cargo vans decreased over 57.76%, lower than sales of Zhejiang Feidie and Chengdu Dayun.

It is interesting that Sales of Dongfeng ranked the first in 2005 and 2006, and sales of Sinotruk ranked the first in 2007 and 2008, in 2009 and 2010, sales of FAW ranked the first. And in the first half year, sales of Dongfeng ranked the first.
　
Sales of Shaanxi Auto and Foton increased with the sliding heavy trucks markets. And sales of Foton increased by 12.57%, there were only 69 more trucks sold by Shaanxi Auto compared with Foton. And this may be due to their efforts on marketing and service.
　
And the third bloc is composed of Beiben, JAC, SIH and CAMC, and their market shares are between 3% to 5%. And their sales of heavy trucks increased in the first half year, and sales of JAC even increased by 90.96%, ranking the second among the four truck makers. And its success can be contributed to releases of JAC Gallop lightweight heavy trucks.
　
The fourth bloc are made of Chengdu Dayun, Hubei Three Rings and Zhejiang Feidie etc. twenty truck makers, and sales of Chengdu Dayun, Zhejiang Feidie and GAC-Hino increased by 80%, and sales of Chengdu Dayun increased by 270.20%, ranking top ten heavy truck makers.
　
Dongfeng leads sales of medium truck sales, sales of Lifan apprising
Dongfeng, FAW and Lifan Motors lead sales of medium trucks, and sales of Dongfeng decreased by 1.67%, sales of FAW medium trucks increased 1.88%. Sales of Chongqing Lifan increased by 243.20%, listed the 3rd from 7th last year.

Light trucks: Foton, Dongfeng and JAC

Foton Motors leads on sales of light trucks, but its market shares are gradually decreasing for its large base number and hot sales of mini trucks.

And Dongfeng, JAC, Jinbei, JMC and Great Wall ranked second to sixth, and their sales were much better than the average growth in light truck industry, especially JMC and Great Wall, their sales growth amounted to 14.67% and 23.38%.

Mini truck industry: Dongfeng replaces SAIC-GM-Wuling to be the second

Market shares of Changan and SAIC-GM-Wuling are decreasing, and their sales growth and market shares were largely decreasing. Sales of Dongfeng were increasing with their proper products and lots of new products, and their sales ranked the second replacing SAIC-GM-Wuling.