Chinese Truck Market Reports Strong Fourth Quarter

(chinatrucks.com, Mar.18,2010)Sales of medium- and heavy-duty trucks has picked up in China, with fourth quarter sales pushing annual figures to just over one million units for 2009, according to a report published jointly by ACT Research and China's State Information Center (SIC).

According to the China Commercial Vehicle Outlook, fourth quarter truck sales were up year-over-year from a weak fourth quarter of 2008. Due to strong demand for construction-related vehicles and improving fundamentals in transportation, each vehicle segment posted strong growth for the full year, led by heavy-duty straight truck growth of 22 percent.

However, the report anticipates heavy-duty tractor sales to gain 27 percent in 2010, as there's a shift away from construction towards freight hauling. The current China Outlook report increased the forecast in each vehicle category for full year 2010.

"A slight recovery in global trade and increasing domestic consumption in China are boosting demand for freight services," said Ken Vieth, senior partner with ACT. "The need for more freight hauling capacity is supplanting a modest slowdown in construction activity from China's infrastructure initiatives. This is having the effect of keeping overall commercial vehicle demand high, although creating some changes in the vehicle mix."

The China Commercial Vehicle Demand Outlook is published jointly by ACT and SIC and released quarterly. The next issue will be published in June 2010.

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