The leveling-out of China’s economy and lower base year comparisons allowed rapid year-over-year recovery in every commercial vehicle segment during the second quarter of 2016, according to ACT Research in the most recent China Commercial Vehicle Outlook.
The Outlook includes an overview of the China economy and a review and forecast of China’s heavy and medium-duty truck and bus markets, as well as analysis of OEM market shares within China.
“Coupled with improvement in market demand, domestic need for heavy trucks increased significantly, rising more than 18% y/y,” said Robert Perkins, Senior Global Business Consultant at ACT. “The tractor segment fared even better, with nearly 50% y/y growth, more than 8 ppts above Q1’s growth rate. Medium-duty truck sales registered a healthy 22% y/y, 2 ppts above the previous quarter.”
Perkins said that heavy trucks and tractors are expected to see year-over-year growth in the third quarter, before turning flat in Q4, while year-over-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, particularly in urban areas.