24% Drop, No Prospective of Rebound in Heavy Truck Market

www.chinatrucks.com. The heavy truck market has just experienced a chilling October, which was supposed to be a “Silver October” of peak season. A total of 43,000 heavy trucks were sold in October, falling by 24% on a year-on-year basis and giving a plain performance similar to last month.

Sales of Dongfeng, Sinotruk and FAW reached 8,700, 6,700 and 8,587 respectively, falling by 25.0%, 19.0% and 35.2% on a year-on-year basis. Sales of Foton and Shaanxi Auto fell by 7.1% and 18.2% over the same period last year, reaching 6,900 and 4,300 respectively. In the third tier, Beiben and CAMC sold 1,545 and 1,104 units, falling by 63.7% and 3.0%; sales of JAC and SAIC-IVECO Hongyan grew by 117.4% and 6.0%, however, the future was not positive due to small base number of 1,300 and 1,190.

The sluggish market failed the expected “Golden September and Silver October” peak season and revealed a barely promising prospect of a rebound. According to the latest statistics, PMI reached 50.2% in October; a 0.4% growth over September, returning to the critical point, which analysts believed was a sign for rebound. However, no real profit and promotion were seen out of this return for heavy truck market in October. A total of 534,900 trucks were sold during January and October, falling by 30.5% over the sales of 769,300 last year.

Heavy truck manufacturers suffered severely from January to October. Dongfeng, Sinotruk and FAW of the first tier sold 112,800, 92,300 and 89,400 units respectively, declining by 30.4%, 27.6% and 35.5% on a year-on-year basis, among which, sales drop of Dongfeng met the average industry decline; thanks to export, sales of Sinotruk dropped slightly while sales of FAW plummeted. Manufacturers in the second tier dropped below the average, 72,200 and 69,300 vehicles were sold by Foton and Shaanxi Auto, reaching a 22.9% and 19.9% year-on-year drop. The third tire was faced with the sharpest decline, JMC, Beiben, Hongyan and CAMC fell by 36.3%, 38.3%, 51.2% and 45.2% respectively, reaching 21,200, 21,000, 13,500 and 12,800 units.

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