The advent of new legislation limiting the size, axle load, and weight of on-highway vehicles in China (GB1589, ed.) could fundamentally change sales dynamics within the domestic commercial vehicle market, according to ACT Research.
“Unlike other new policies, [the new legislation] is accompanied by the ‘Opinions on Improving the Management of the Illegal Modification of Truck and Oversized and Overloaded Trucks’, which became effective in mid-September,” explained Robert Perkins, Senior Global Business Consultant at ACT.
“This ‘overloading project’ is administered by five ministries, which will serve as the enforcement arm. What this means for commercoa; vehicles in the short-term is increased demand, while the long-term impact will translate to a decrease in unit demand as fleets adjust to the new requirements/new products as transport efficiencies increase.”
The tightening of emission standards and subsidies to promote the use of new energy vehicles are two other regulations impacting China’s commercial vehicle industry that “present both challenges and opportunities for heavy duty vehicle sales in China,” Perkins added.
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