Heavy Duty Trucks

July 13, 2013 by staff

Heavy Duty Trucks, Reportlinker.com announces that a new market research report is available in its catalogue:

Affected by the economic slowdown, the demand for heavy duty truck is in the downward trend continuously; coupled with the financial credit crisis, which limits the ability of financing vehicle purchase, the growth rate of global heavy duty truck market has decelerated since the second half of 2011. Mercedes-Benz, Volvo and other major commercial vehicle groups have implemented appropriate strategies, such as closing corresponding factories, reducing output and intensifying market adjustment in China and India.

By the end of 2012, there were nearly 30 heavy duty truck manufacturing enterprises in China; in 2012, the industry sales volume was 634,000 units, and the market scale reached CNY 171.238 billion, decreased by 26.42%. As for the market segments, heavy truck, truck chassis and semitrailer tractor appeared the negative growth of more than 20%; of which, the sales volume of truck chassis was 243,000 units, decreased by 31.13% year-on-year, which was the largest decline in the market segments.

As one of the means of production for road goods transport, heavy duty truck owns relatively high unit value, and the demand growth mainly depends on the increase of national macro-economy and fixed asset investment, the development of road goods transport and logistics industry, as well as the gradual formation and perfect of expressway network. The demand for heavy duty trucks is mainly from the industries of steel, cement and other infrastructure appliances, coal mining, import and export, logistics and bulk transportation. With the development of urbanization in China, the demand for city-wide transport has showed an upward trend, which has driven the demand for the heavy duty trucks over 30 tons, and this trend is likely to continue in the next two to three years.

Different from passenger vehicle (which belongs to consumer goods), truck belongs to investment goods. As a mean of production, heavy duty trucks’ development is corresponding to the various stages of economic development, and the price also increases along with the increasing of product grade and quality; however, compares with foreign similar products, the price gap is still huge. At present, the vehicle type which priced from CNY 250,000 to CNY 350,000, the price will show an upward trend, so as to fill the price range from CNY 350,000 to CNY 500,000. These products will mainly be joint venture products, which will use foreign power assembly to match domestic vehicle types. The prices of other products will remain unchanged.

China is still in the critical period of infrastructure construction accelerating and industry transformation and upgrading; in the fields of mining and infrastructure construction, the demand for heavy duty trucks will continue to increase. In the next five years, China’s heavy duty truck industry will continue to maintain a rapid growth rate, and the production capacity within the industry will continue to release. It is estimated that, the production capacity of China’s heavy duty truck industry will reach 1.71 million units by 2017.