What happened to the winter heavy truck market?
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Although the growth momentum of the heavy-duty truck industry in the first half of the year was strong, unexpected difficulties were encountered in the second half of the year: adverse factors such as the limited production of the Olympic Games, the switching of the National III Standards, and the increase in overall costs were unexpected. The general environment has also changed. The continuous deterioration of the financial crisis has brought about a sustained downturn in the market, decreased capacity, and decreased freight rates. Many heavy-duty truck companies have sold less than expected and can only stop production and reduce production.
Heavy truck market encounters winter
Due to the sudden drop in transportation demand in homes, buildings, coal, and minerals, the outage rates of many heavy trucks in Hebei, Beijing, Shanxi, Shaanxi, and other places are already over 50%.
“Transportation demand for light industry, textiles, electronics, etc. is declining. The demand for many industries has dropped by two to three percent,†said Mr. Liu, a logistics company with Tianjin Binhai engaged in the nation’s cargo transportation.
“The outages of steel, coal, and construction are the most serious, and the competition is fierce, and the freight rate has dropped seriously,†said Master Chen, who runs professional transportation.
The decline in capacity and the drop in freight rates have made the dealer's life difficult. A Hongyan car dealer in Tangshan, Hebei, said that the limited time limit for the Olympic Games has passed, and it is expected that sales will improve, but it has encountered a financial crisis and the market situation is not optimistic.
"This is a common problem encountered by the industry. The implementation of the National III standard in the second half of the year has already released the energy consumption in the first half of the year. Together with the impact of the current global financial crisis on the Chinese economy, the sales situation of auto companies has become very serious. We have adopted the necessary measures to limit production,†said Guo Huanan, director of the Sinotrans Heavy Industry Propaganda Department, when interviewed by this reporter.
China National Heavy Duty Truck Co., Ltd., which has taken measures to limit production, includes Dongfeng, Liberation, Valin, Auman, and other heavy truck brands.
In addition, the sales of supporting parts and components related to heavy trucks, such as engines, transmissions, and axles, have also been significantly reduced, and many companies have even stopped production or semi-discontinued production.
The heavy truck industry faces another major downturn after 2005, and many companies have already begun winter. According to industry insiders, due to the impact of the financial crisis, the rebound of “Jin 9 Silver 10â€, which was highly hoped for by the company, did not appear, but the heavy truck market declined in September and October. After more than two years of continuous growth, the demand for heavy-duty trucks has turned a corner. This is why many companies have adopted measures to limit production.
A person in charge of the Jianghuai Automobile Market Department pointed out in an interview with reporters that the truck market is now not as profitable as it used to be, and that the unfavorable factors such as the price increase of steel products and the implementation of the National III Standard at the beginning of the year have a collateral effect, and companies are facing cost pressures while at the same time Consider consumer expectations.
However, this is not a bad thing for some companies. When the crisis comes, many problems in the industry will be exposed. Enterprises can fully recognize their own shortcomings, and some companies will inevitably seize the opportunity to come to the fore. Just as a few years ago, China National Heavy Duty Truck Co., Ltd., struggling to work hard in the sluggish year of the heavy truck industry, timely launch of products with market competitiveness, has changed the pattern of China's heavy truck industry.
Waiting for the economic situation to improve
At the end of November, the State Council executive meeting reviewed the fuel tax reform plan and began to solicit opinions from the public. Although the details of the specific plan have yet to be discussed by all parties, for the automotive industry, implementing the fuel tax will help accelerate the structural adjustment of the entire industry, which has become the consensus in the industry.
Xu Kunlin, deputy director of the price division of the National Development and Reform Commission, made it clear on Tuesday that after the implementation of the oil price reform program for refined products, the current oil price will not only increase, but will also decline.
This will undoubtedly be of great benefit to the automotive industry, especially the heavy truck industry. The fuel tax is levied on consumption. The reduction in oil prices, the cancellation of road maintenance fees and the cancellation of ordinary road tolls will significantly reduce the use of trucks.
However, the reporter also learned in the interview that companies do not think that the decline in the use of the cost in the short term will attract consumers to buy a new car.
"The impact of the financial crisis is greater than expected. Compared with the introduction of the fuel tax, we are more concerned with the role of the country in boosting domestic demand for the economy." Guo Huannan pointed out that the growth of China's domestic heavy truck companies has always relied on the rapid development of China's economy. The annual double-digit growth depends on a large number of basic industries such as steel, coal, and building materials.
The economic recovery policy being implemented by the country will have a certain lag effect on heavy truck consumption. With no significant increase in demand, the heavy-duty truck industry will not experience significant growth in the short term.
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