China’s CV Markets Grew In Q2: ACT
By Mike Brezonick16 September 2020
China’s heavy and medium commercial vehicle markets reported an uptick in sales during 2020’s second quarter, versus the ground lost from the severe setback in the first quarter due to the COVID-19 virus, according to the most recent China Commercial Vehicle Outlook from ACT Research.
Domestic heavy-duty truck sales rose 69% year-over-year, while tractor demand was up nearly 72% and medium-duty truck sales in China rose more than 44% year-over-year in the second quarter, ACT said.
The consumer-facing segments of China’s economy are likely to give less support to the heavy and medium truck markets, particularly with GDP growth muted as a result of COVID-19. That said, ACT noted that the transition of consumption from traditional brick-and-mortar stores to online shopping will soften that blow to China’s domestic commercial vehicle demand.
Additionally, ongoing structural changes, such as stricter weight-limit enforcement, modal shifts, and the removal of NS3 vehicles, within China’s CV markets are helping to offset COVID-impacted consumption. As expected, demand for bulk goods in construction markets has begun to recover, as infrastructure investment is once again becoming the main driver of growth in China’s economy.
Freight-hauling overcapacity will continue to be a drag on freight rates and new vehicle sales until supply and demand become more closely aligned, ACT said.
The China CV Outlook, jointly published quarterly by ACT and China’s State Information Center (SIC), includes a review and forecast of China’s heavy tractor and heavy and medium duty truck and bus markets, as well as analysis of OEM market shares within China and an overview of the Chinese macroeconomy. This quarterly report also includes access to monthly wholesale data, alternative fuels by CV application, market share percentage, industrial policy impacts, and competitive landscape.
For more information about ACT’s China Commercial Vehicle Outlook, click here.