Regulation Changes Short-Term Commercial Vehicle Forecast in China

A recent regulation indicates a continued tightening in the most polluted areas of China, supporting the ongoing shift to natural gas tractors and trucks with newer emission technologies. Other notable government policy changes have brought a one-time increase in heavy and medium duty market populations, according to the most recent China Commercial Vehicle Outlook, jointly published quarterly by ACT Research and China’s State Information Center (SIC).

In the short-term, heavy trucks and tractors, as well as medium duty trucks, are expected to see year-over-year growth continue in Q3/17.

“Pro-growth, but at a lower rate, continues to be the primary focus as a current level of macroeconomic activity,” said Robert Perkins, senior global business consultant at ACT Research. “With the current supply-side restructuring and general slowing of the macroeconomy, we anticipate that infrastructure investment will be China’s one economic counterbalance.”

For the Chinese market, sales of medium duty and heavy duty trucks, including tractors, divide into two categories: those bought to increase the vehicle population and those bought as replacements. Three factors determine commercial vehicle population: total amount of freight to be transported, share of that freight moved via highway and transport capacity and efficiency per vehicle.

“Demand for these commercial vehicles is expected to be near 800,000 units per year in the next five years,” Perkins said. He continued, “However, as efficiency and per-vehicle capacity improves, a fluctuating downward trend has started to emerge.”

Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!

  • Hidden
  • RAM Group Holdings does not share or sell your personal information. The information we ask you to furnish is limited to what is needed to process your order fully and completely. You may unsubscribe at any time. View our Privacy Policy.
  • Please Confirm permission for Monitor/Monitordaily to e-mail you.
  • Hidden

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
Susie Angelucci
Advertising: 484.459.3016

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.