China’s CV Market Softening?

China’s economy is likely to give less support to the heavy and medium truck markets in the short term, despite the government’s efforts to ensure steady economic growth with a ramp-up of tax cuts and infrastructure investment, according to the most recent China Commercial Vehicle Outlook, jointly published quarterly by ACT and China’s State Information Center (SIC).

Additionally, while not impacting each commercial vehicle segment every year, structural changes within China’s CV market are expected to exert downward pressure through 2023. The Outlook includes an overview of the China economy and a review and forecast of China’s heavy and medium duty truck and bus markets, as well as analysis of OEM market shares within China.

“The replacement of NSIII trucks continues to drive the market and the trend of freight shifting from road to rail will continue to hurt heavy duty truck demand,” said Robert Perkins, senior global business consultant at ACT Research. “That said, we’re also seeing sluggish freight rates, dealers reporting near-capacity saturation in the truck markets, and NEV subsidies that created increased demand for medium and large bus sales in Q1, but which are expected to reduce demand in Q2.”

“ACT Research anticipates that, in the next five years, policies regarding commercial vehicles in China will focus on environmental improvement and safety.” He cautioned, “While this will promote product updates and technology shifts, they should not cause the large market fluctuations we experienced in 2016 and 2017,” Perkins said.

Regarding specific market segments, Perkins said, “the domestic demand for heavy trucks declined about 10% year-over-year in Q1’19, while the tractor market grew more than 6% and the medium truck market ended 2019’s first quarter down more than 26% compared to Q1’18.”

SIC is affiliated with the National Development and Reform Commission of China and is engaged in research on the macro-economy, key industries and information technology.

ACT Research is a publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasting services for the North American and China markets.

For more information:  https://www.actresearch.net.

Related Articles

Daimler In Global Battery Agreement
EPA Settles Another Diesel Cheating Case
LiuGong Launches Electric Excavators and Loaders
The Beauty Of Yachting, In Cannes
Hydrogenics Officially Part of Cummins
Brandt Adds Nortrax
Scania USA Announces Territory Expansions For Engine Distributors
Toro and Tractor Supply Announce Partnership

Latest News

Daimler In Global Battery Agreement
EPA Settles Another Diesel Cheating Case
Bobcat Opens First NA Training Center
Hydraulic Oil Viscosity App
Metso Acquires The Rest Of Shaorui
Deutz Presents Inaugural Nicolaus August Otto Award
Timken Adds Automatic Lubrication Company
Cummins Expands X15 Line
Orvieto Promoted At ZF

Magazine Issue Archive

Diesel Progress – September 2019
Diesel Progress – August 2019
Diesel Progress International – July – August 2019
Diesel Progress – July 2019
Diesel Progress – June 2019
Diesel Progress International May-June 2019
Diesel Progress – May 2019
Diesel Progress – April 2019
Diesel Progress International – March-April 2019
Diesel Progress – March 2019

Login

Forgotten Password?

Haven’t got an account? Click here to register.