Demand for every segment of commercial vehicles in China had a rapid recovery in the second quarter of 2016, according to US research company, ACT, and China's State Information Centre (SIC).
The recovery of the heavy and medium-duty truck markets – a key indicator for future trailer demand – was reportedly enabled through China’s economy levelling compared to lower base year comparisons.
“Coupled with improvement in market demand, domestic need for heavy trucks increased significantly, rising more than 18 per cent year-on-year,” said Robert Perkins, Senior Global Business Consultant at ACT.
“The [prime mover] segment fared even better, with nearly 50 per cent year-on-year growth, more than eight points above Q1’s growth rate. Medium-duty truck sales registered a healthy 22 per cent year-on-year, two points above the previous quarter.”
Perkins said that heavy trucks and prime movers are expected to see year-on-year growth in the third quarter, before turning flat in Q4, while year-on-year contraction is forecast for medium trucks in the next two quarters.
Additionally, China’s medium and large bus markets are expected to be strong, supported by stimulus for environmentally friendly vehicles in urban areas.