ACT Reports Subdued China Commercial Vehicle Demand
By pdamon29 March 2016
China’s heavy and medium truck and tractor markets remained soft in the fourth quarter of 2015, according to the most recent China Commercial Vehicle Outlook, jointly published quarterly by ACT and China’s State Information Center (SIC).
Total heavy duty sales declined more than 13% year over year in 2015’s final quarter, though that number also represented a 24% quarter to quarter rebound from weak third quarter volumes.
For full year 2015, heavy duty vehicle sales in China fell 26% from 2014 levels. The pace of growth of China’s economy slowed to 6.8% on a year-over-year basis in the fourth quarter, down slightly from the 6.9% pace recorded in the previous quarter, ACT said. For perspective, full-year real GDP growth in 2015 was 6.9%, down from the 7.4% recorded in 2014 and 2013s economic growth was 7.7%.
China’s real GDP has been trending downward from double-digit levels and is now settling into a new normal in the single-digit range. “Recent developments and achievements demonstrate that China continues to evolve, faces necessary changes, and earns recognition for its prominence in the global economy, as the country’s leaders continue to grapple with the challenges of recalibrating economic growth targets and implementing appropriate policies,” said Jim Meil, ACT’s principal industry analyst.
“Heavy and medium truck and tractor markets may show temporary signs of improvement, but will remain subdued for the foreseeable future, until changes in both the country’s economy and the evolution of its transportation industry have stabilized,” said Robert Perkins, senior global business consultant at ACT. “The country’s transportation industry is undergoing several changes that will impact vehicle demand, including rapidly improving vehicle quality, significant logistics efficiency improvement, and higher capacity vehicles.”
The China Commercial Vehicle 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. 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 is a global publisher of new and used commercial vehicle (CV) industry data, market analysis and forecasting services for the North American market, as well as the U.S. tractor-trailer market and the China CV market.