Although the heavy truck market continued its growth momentum in May, the industry situation in the second quarter is not optimistic.

 

According to the sales data revealed by various heavy truck companies, in May this year, China's heavy truck market sold about 74,000 models, an increase of 50%, down 11%. From

 

January to May this year, the cumulative sales volume of the domestic heavy truck market was 400,000, an increase of 23%.

 

Five companies rose more than 50%

 

In May, the domestic heavy truck market made steady progress, 9 enterprises achieved year-on-year growth, of which 5 increased by more than 50%; China National Heavy Duty Truck, FAW Jiefang, Dongfeng Company, Shaanxi Automobile Group four enterprises monthly sales of more than 10,000 vehicles.

 

Specifically, in May, SinotruK continued to hold the top spot with 18,500 vehicles, an increase of 54% year-on-year. From January to May, SinotruK's cumulative sales volume was about 107,300 vehicles, an increase of 35% year-on-year, and its market share was 26.9%. Faw Jiefang sold about 17,000 heavy trucks in May, up 140% year-on-year, ranking second in the industry; From January to May, FAW Jiefang accumulated sales of about 78,200 heavy trucks, an increase of 19%, and the market share was 19.6%. In May, Shaanxi Automobile Group sold about 12,000 heavy trucks, an increase of 32%, ranking third in monthly sales; From January to May, Shaanxi Automobile Group sold a total of about 63,400 heavy trucks, an increase of 49%, and its market share reached 15.9%. Dongfeng sold about 11,500 heavy trucks in May, up 39% year on year, ranking fourth. From January to May, Dongfeng Company's cumulative sales of 67,900 vehicles, an increase of 9%, the market share of 17%. In May, Foton Automobile sold 8623 heavy trucks, an increase of 46%, ranking fifth in the month; From January to May, Foton Motor accumulated sales of about 42,800 heavy trucks, an increase of 33%, the market share of 10.7%.

 

In May, Dayun heavy truck sales of 2,518, an increase of 59%, ranking sixth; From January to May, the cumulative sales volume of Dayun heavy trucks was 10,300 units, an increase of 10%, and the market share was 2.6%. Xugong heavy trucks sold 1,900 units in May, up 32% year on year, ranking seventh; From January to May, Xugong heavy truck cumulative sales of about 7,200 units, an increase of 24%, the market share of 1.8%. Jianghuai heavy trucks sold 1,300 units in May, an increase of 65%, ranking eighth; From January to May, Jianghuai heavy truck cumulative sales of about 7800 units, an increase of 18%, the market share of 2%. In May, SAIC Hongyan sold 800 heavy trucks, an increase of 58%, ranking ninth; From January to May, SAIC Hongyan sold 4,000 heavy trucks, down 58% year-on-year, and its market share was 0.9%.
From the perspective of market concentration, in May, the cumulative sales of the top 9 heavy truck enterprises reached 70,000 vehicles, with a total market share of 95.8%, an increase of 1 percentage point over the same period last year, and market concentration was further improved.

 

 

The market situation is still not optimistic

 

The heavy truck market achieved year-on-year growth in May, mainly for the following reasons:

 

First, due to the low sales base in the same period last year (only 47,000 units), the heavy truck market in May this year created conditions for year-on-year growth; Secondly, since 2023, the pent-up demand for car replacement has gradually released, and the transportation industry has begun to return to normal, resulting in better sales performance; In addition, the heavy truck segment market recovery is obvious, natural gas heavy truck and new energy heavy truck market have achieved year-on-year and quarter-on-quarter double growth; Fourth, the export market has continued to improve this year. In May, heavy truck exports maintained a strong momentum, and the export volume is expected to increase by more than 55% year-on-year, becoming the main force driving the growth of the heavy truck market.

 

However, it is worth noting that although the heavy truck market in May has increased significantly compared with the same period last year, manufacturers' orders and terminal sales are far less than expected, compared with 83,100 in April, down about 11% month-on-month. From the monthly sales of the same period in the past five years, it can also be seen that the sales volume of heavy trucks in May this year is the second lowest in recent years, and the market performance of the same period in 2019, 2020 and 2021 is far different.

 

In this regard, some industry insiders pointed out that the recovery of car demand since late March has weakened significantly, May heavy truck sales declined month-on-month, indicating that the market situation is still not optimistic, but also convey the future market "cooling" signal.

 

 

It will take time for the market to recover

 

In an interview with reporters, a number of heavy truck dealers said that the heavy truck market is still in a low operating state in the second quarter, and it is expected that there will still be a sequential decline in June. In their view, the lack of growth momentum of the heavy truck market is mainly affected by three factors.
First, the domestic economy and consumption are in a weak recovery trend, and the freight market prosperity has not changed fundamentally; Second, the weakness of fixed asset investment is prominent, and the manufacturing purchasing managers' index has fallen continuously, which is not enough to stimulate the heavy truck market. Third, there is still a high inventory in the heavy truck industry, and "destocking" in the second quarter is still the main task of many heavy truck companies and dealers, which also restricts new car sales to a certain extent.

 

"In May, the demand for logistics such as express transportation, which is highly related to the people's livelihood, has not recovered significantly, and infrastructure investment projects have not yet started on a large scale, and market demand is still expected to hover at a low level in June." Overall, it will take time for the heavy truck market to recover." The relevant person in charge of FAW liberation said.

 

Although the heavy truck market faces many uncertainties, with the gradual recovery of the economy and the further release of consumer demand, the industry is still optimistic about the future prospects of the industry.

 

"At present, the heavy truck market in the second quarter or will show a quarter-on-quarter decline, but the market performance in the same period will still be better than 2022, and the year-on-year growth trend is expected to continue." Shanghai heavy truck dealer Liu Zhiwen told reporters that in the second half of this year, driven by the gradual recovery of the logistics market, the demand of the heavy truck industry will continue to be released, providing a boost to short-term market growth. At the same time, the relevant policies to promote consumption and stabilize real estate are also continuing to increase, which is expected to drive the sales of heavy trucks. In addition, new energy heavy trucks and overseas markets will remain strong.

 

Xie Guoping, deputy director of the Department of Informatization and Industrial Development of the State Information Center and leader of the commercial vehicle market Research group, pointed out that this year is the year of recovery of the commercial vehicle industry, and various market segments will show a steady and upward development trend. In the field of heavy trucks, the situation of more cars and less goods will be improved to a certain extent, and the freight environment will gradually improve, which will further enhance the willingness and enthusiasm of users to buy cars. 2023 is a key year for the implementation of a number of favorable policies, which will form a positive driving role and provide strong support for the recovery of the heavy card market.

 

Originally published by China Automotive News, June 13, 2023