Chinese Heavy Truck Makers Set Higher Sales Targets for 2020

Several Chinese heavy truck manufacturers have lifted their sales target for this year following higher sales during January-July and potential increased demand in the coming months.

Domestic sales of heavy trucks rose to 960,000 units during January-July, up by 31.4pc from a year earlier, driven by increasing infrastructure construction following the easing of the country's Covid-19 outbreak and the government's drive to eliminate and replace old and used trucks to meet stricter emissions standards. The rising sales of heavy trucks are expected to boost demand for metal feedstocks such as aluminium, magnesium, silicon and steel.

FAW Jiefang has raised its 2020 sales target to 350,000 units from 300,000 previously after selling 264,900 during January-July, up by 38pc from a year earlier.

China National Heavy Duty Truck Group sold 144,700 units during January-July, up by 25pc from a year earlier. The firm has lifted its sales goal to 250,000-300,000 units for 2020 from 200,000 planned previously.

Sales from Shaanxi Automobile Group increased by 19pc to 130,600 units for January-July, with it aiming to sell 220,000-250,000 units this year compared with an initial target of 200,000.

Foton Automobile has not updated its sales target. Its sales increased by 81pc from a year earlier to 92,965 units during January-July. The company is likely to meet its target of 100,000 units in August.

Demand for trucks with less emissions are expected to continue to strengthen for the rest of this year in line with China's plan to reduce air pollution. More than 1mn units of ageing heavy trucks are required to be replaced in Beijing and Tianjin cities, as well as Shanxi and Shaanxi provinces by the end of 2020, according to market participants.