Heavy-duty Trucks Maintained a Solid Growth Against the Trend
The automotive industry has been facing a sharp drop in demand this year. Nonetheless, amidst this gloomy business environment, there are several truck makers which are witnessing growth. One such maker is SINOTRUK. SINOTRUK posts a 80% year-on-year growth in August with 20, 000 units sold. Its sales has kept above 20,000 units for six consecutive months since March. The other industry leading enterprise, FAW Jiefang, saw a 74% year-on-year growth at 27,600 units in August. During the January to August period, its market share has grown to 27% with sales of 29,310 units and 41% year-on-year growth.
Insiders generally agree that the growth are influenced by the following factors. Firstly, the demand for heavy-duty truck is increasing due to vehicles not passing the emission standards are gradually phased out. Next, tighter rules against overloading of trucks in urban and suburban areas stimulates additional demand for light-weight trucks. Firnally, most of the construction projects are delayed as a result of the novel coronavirus outbreak, which has a backward impact on the demand for engineering trucks.