The rebound in heavy truck sales in 2012 is still worth the wait



In January this year, the sales volume of the domestic heavy-duty truck market was approximately 34,000 units, a decrease of more than 60% compared with the same period of last year. This downturn in the heavy-duty truck market that began in 2012 is a surprise.



Commercial vehicle sales continued to slump in January this year

It has been nearly two weeks since the Spring Festival holiday, but Mr. Wang, a heavy truck dealer from Mianyang, Sichuan Province, still has a blank sales performance. For him, the new year does not seem to bring him much new weather. “Before the beginning of the year, people who visit the store will gradually get more and more popular. After the Lantern Festival, the popularity will be even more prosperous. Therefore, we can sell more than a dozen cars in the general half-month period. In the beginning of spring, there has been a bleak picture that has never been seen before.” Mr. Wang said that in the “cold stream” of the market, it is still far more than their family. "At present, the entire heavy truck market in Mianyang is basically in a state of weakness and slow heat."

Zhao Chenxi, an automotive analyst at Haitong Securities, had previously stated that due to the fact that the domestic heavy-duty truck industry trend in 2011 was high and low. Therefore, in the higher base, the first quarter of this year will be the lowest point of annual sales growth. “In the first 3 months, the sales of domestic heavy trucks will decline by more than 30%. In January, due to negative factors such as Spring Festival holidays, sales may have a more obvious downturn.” In his opinion, last year was due to the Spring Festival. In February, its negative impact on the market was fully reflected in February. However, this effect was released earlier this year, which has affected the demand for cars to some extent. Coupled with the high base at the beginning of last year, domestic sales in January have fallen significantly.

In the face of such a dismal market, some analysts frankly stated that apart from the adverse effect of the Spring Festival's premature and high base on sales volume, the current downturn in the heavy truck industry is fundamentally speaking because the macroeconomic level has not seen a clear rebound. Good signal.

As we all know, for the heavy truck industry that has the economic “barometer”, its market performance is closely related to the macro economy. In this person's view, at present, the domestic macro economy still has great uncertainty. Not only has the tightening monetary policy not been significantly loosened, the pace of slowdown in the growth of fixed asset investment has not yet stopped, and, although the volume of road freight The growth rate remained relatively stable compared to the same period of last year, but it did not show a trend of acceleration. The increase in the output of major industrial products such as steel and cement was still at historically low levels. “All the above indications indicate that for the heavy-duty truck industry, the favorable factors supporting the recovery of terminal demand have not yet emerged. The subsequent trend of market development remains to be observed in the follow-up changes to the aforementioned signals. He told reporters.



Heavy truck market is expected to rebound in the second quarter

Although in the short term, sales in the heavy truck industry are unlikely to show a clear upward trend, it seems to some people in the industry that the signs of improvement are beginning to show. "I believe that with the start of construction of fixed asset investment projects, after the first lunar month, our heavy truck market in this region is expected to start." An heavy truck dealer in Inner Mongolia said with expectation.

According to related sources, in February, orders for some domestic heavy truck companies began to rebound sharply. From this, he also judged that the sales season for heavy trucks is expected to arrive in early February. This point has also been confirmed by the barometer of the heavy truck industry, the change in the order quantity of Shaanxi Fast.

Recently, Li Dakai, chairman of Fast Group, said that in January, the order volume of Fast Transmission was only 30,000 units, but this figure had increased to 45,000 units by February. "It can be seen that the heavy truck market has shown signs of stabilization," said Li Dakai.

Although such judgments are pleasing, the more general view is that with the gradual improvement of the fundamentals of the heavy truck industry, the “spring” of the heavy truck market will not be available until the second quarter. Zhao Chenxi believes that the domestic heavy truck sales in the second quarter will be equal to the same period of last year, and will stop falling, and will achieve more than 30% growth in the third and fourth quarters, and the annual growth rate is expected to achieve 6%. “As the inflationary pressure eases and the macroeconomic acceleration bottoms out, the central government has set the tone for stable growth, price control, and structural adjustment, and implemented a proactive fiscal policy and a prudent monetary policy. In this context, the second quarter After that, the investment in infrastructure will improve, and related needs such as logistics will also gradually pick up, and the combination of affordable housing and water conservancy projects on the schedule will also make the demand for logistics vehicles and special vehicles for engineering construction. Get boosted.” Analyst Bai Xiaolan, an analyst with Guotai Junan Automotive, believes.



Heavy truck market is still worth the wait in 2012

In some people's view, the reason why the future heavy truck market is worth looking forward to, there is a very important reason, that is, the de-stocking of heavy truck companies is drawing to a close.

It is understood that in early 2011, domestic heavy truck companies and distributors were over-optimistic in the market, resulting in a large amount of inventory accumulated before the peak season. However, under the influence of multiple adverse factors such as domestic macroeconomic adjustments, excess capacity, and continuous decline in the profitability of logistics transportation, sales of heavy trucks declined significantly in 2011. This makes both companies and distributors have to start digesting inventory continuously. At present, after 10 months of hard work, this work has achieved results. "According to data from the China Automobile Association, in December 2011, domestic heavy truck production first saw production and sales after a 10-month period, and we can also find heavy trucks in January from our recent research on the production of related companies. When enterprises arrange production, they no longer deliberately reduce output, but actively increase a small amount of inventory. This shows that the company's destocking cycle is about to end.” Zhao Chenxi said. "The closing of the vendor's destocking work means that the heavy-duty truck inventory is expected to cover in the first quarter of 2012, which will drive some sales. But in the end, the real increase in the sales of heavy-duty trucks also needs to rely on the recovery of terminal demand." Related analysts pointed out.

In addition, the sudden increase in the domestic heavy truck inventory brought about by the spurt growth in 2010, in the context of slowing demand last year, the portion of its stock that was consumed in advance has also been gradually digested. Therefore, the resistance of high inventory to sales growth will also be lifted, leading to a new round of heavy truck purchases.

At the same time, the implementation of relevant policies such as the “Regulations on the Protection of Highway Safety”, the management of toll highways, and the reduction of the burden on logistics companies will also help improve the demand for heavy trucks. The improvement of heavy truck industry policies such as “Restrictions on Fuel Consumption for Heavy Commercial Vehicles” and subsidies for commercial vehicle energy-saving vehicles may also stimulate consumption of heavy trucks, which in turn will boost sales.

Based on this, although industry professionals currently hold relatively pessimistic expectations for the 2012 heavy truck market, their sales rebound is still worth the wait. It is expected that the sales for the whole year will show a clear low and high trend.

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