According to the recent release of ACT Research’s China Commercial Vehicle OUTLOOK, the Chinese commercial vehicle market has been affected by policy, market, and economic factors resulting in a substantial market demand decline for heavy trucks, tractors, medium trucks, and domestic.
The pandemic and the corresponding lockdowns shook the transportation market in the second quarter. Domestic demand for heavy trucks fell nearly 74% y/y, while the tractor market shrank almost 80% y/y and domestic demand for MD trucks dropped 59%. In Q2’22, domestic demand for large and medium buses was nearly 48% lower compared to Q2’21.
Freight activity is expected to improve dramatically as COVID restrictions have lifted and consumers are able to travel and buy more goods. Policies put in place to ease logistics congestion also went into effect in Q2, facilitating the flow of goods.
Three factors influenced the HDT market this quarter: overall economic activity, the industrial sector, and government policies. Economic growth declined sharply in Q2 due to COVID mitigation measures that were in full force in April. Those measures negatively impacted freight demand and vehicle purchases.
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 by-OEM wholesale data, alternative fuels market shares by CV application, market share percentages, industrial policy impacts, and an overview of the competitive landscape.
SIC is affiliated with the National Development and Reform Commission of China and is engaged in research on the macro-economy, key industries and information technology.
ACT Research is recognized as the leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies. ACT Research is a contributor to the Blue Chip Economic Indicators and a member of the Wall Street Journal Economic Forecast Panel. ACT Research executives have received peer recognition, including election to the Board of Directors of the National Association for Business Economics, appointment as Consulting Economist to the National Private Truck Council, and the Lawrence R. Klein Award for Blue Chip Economic Indicators’ Most Accurate Economic Forecast over a four-year period. ACT Research senior staff members have earned accolades including Chicago Federal Reserve Automotive Outlook Symposium Best Overall Forecast, Wall Street Journal Top Economic Outlook, and USA Today Top 10 Economic Forecasters. More information can be found at www.actresearch.net.
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