Posted on 03 Aug 2023
Sales of heavy-duty trucks in China slipped by 25% on month to record 65,000 units in July, the second lowest level for any July since 2017, according to a preliminary estimate released by the Beijing-headquartered Commercial Vehicle World (CVWorld), a well-recognized market intelligence provider on China's truck manufacturing sector. July's sales increased by 44% on a yearly basis though, CVWorld noted.
China's heavy truck industry is closely related to the macroeconomic environment, but the country's economic growth has been far from satisfactory in recent months, CVWorld elaborated.
China's Purchasing Managers' Index (PMI) for the manufacturing industry - a crucial sector for road transport - remained in the contraction zone for the fourth month at 49.3 in July, according to the latest release by the country's National Bureau of Statistics (NBS).
During June, the country's FAI, another driving force for its heavy truck market, dropped by 17% on year to Yuan 5.43 trillion ($ 756.2 billion), according to the data from NBS.
Although China's heavy truck sales have been lackluster in the past month, its possession of large quantities of heavy trucks suggests great potential demand for truck upgrading. Besides, gas-powered trucks' strong performance will prevent overall truck sales from declining steeply in the second half of the year.
Moreover, the exports of heavy trucks will remain robust in H2, with the export volume for the whole year estimated to reach 240,000 units, according to CVWorld. If this estimation is proved accurate, it will be the highest annual export volume in history.
CVWorld also predicted that the sales of heavy trucks in China will add up to 410,000-430,000 units in the second half, bringing the country's total sales of heavy trucks for 2023 to more than 900,000 units.
Source:Mysteel Global
