Government policy changes have brought a “one-time increase” to China’s heavy- and medium-duty commercial vehicle population.
According to a new report published by US-based ACT Research and China’s State Information Centre (SIC), the changes have caused a “dramatic shift” from heavy rigid trucks to prime movers as the “power unit of choice for logistics”.
“As the market absorbs these extra vehicles, it also stabilises future demand as fleets and logistic companies will better balance freight volume with available capacity,” the report found.
As such, ACT’s 2018 and beyond forecast reflects negative volume growth based on better logistics, modal shifts and the macro-economic trends caused by the shift from export demand to domestic consumption, explained Robert Perkins, Senior Global Business Consultant at ACT Research.
He continued, “In the short-term, [however,] heavy trucks and tractors (prime movers, ed.), as well as medium-duty trucks are expected to see year-over-year growth continue in Q2.”