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Analysis of China Light Truck MarketsⅠ

Date:2011-05-26 Author:Mika Source:www.chinatrucks.com

www.chinatrucks.com: Affected by sliding sales of China auto markets, China light truck markets are going through a tough time, but the stimulates from countryside markets will maintain development of light truck markets. At the same time, China light truck markets are influenced by the following factors.
  
Part One: Analysis of elements influencing China light trucks
  
1. Central government invests more on countryside to improvement welfare of peasants and boost development of countryside economy. Wagons of peasants are faster than citizens, and this will boost growth of light trucks.
  
2. It is usually peak time for constructing roads, water conservancy and scenic spots, and market needs for engineering light trucks will increase. Thirty-six indemnificatory apartments will be built in five years.

3. Summer grain crops, vegetables and fruits in North China will stimulates countryside transport markets.

4. Highway logistics and goods transport will be increased by faster urban traffic and the Internet marketing.
  
At first, according to statistics from Ministry of Railways, half-an-hour and hourly traffic networks have formed in most China cities except Tibet, Xinjiang, Qinghai, Ningxia and Gansu. And eight-hour traffic networks will be built till 2012.
  
Secondly, expenses on the Internet marketing fasten needs for highway logistics and short-distance transport. There are already 457 million net citizens in China till end of 2010, and consumptions through the Internet increased by 48.6%. And it predicts that sales on the Internet will surpass stores and shopping malls in 2011.
  
Thirdly, Highway freight volumes and tonnage mileages reached 6,201,990,000 tons and 1,097,602,180,000 tons.km, up 14.5% and 15.6%.
  
5. Urbanization in China is developing rather fast in recent years. So short-distance transports are growing effectively. After moving to cities, vegetables and fruits will be far away from them, and short-distance transport will increase dramatically. More vacancies will be needed for these new citizens, and private enterprises will develop faster.
 
6. Development of private enterprises and industrializations will be faster. China urbanization rate will amount to 44.3% till 2015. And the registered private enterprises are 7,556,550 in 2010, and it became the biggest channel to attract employees.
  
7. Market needs for light trucks are partially depend on development of enterprises and highway logistics. Central government tightens up monetary policy this year, and many enterprises encountered cash flow problems. And power rationing will be more this summer with the increasing costs in electricity industry and carbon. However, China highway transports were still increasing over last year in the first quarter.
 
8. Vehicles with high pollution emission are eliminated in many cities, and market spaces for light trucks are bigger. Ministry of Environmental Protection carries policies to reduce vehicle with heavier emissions. And some major cities, such as Beijing, Guangzhou and Qingdao are eliminating thousands of such vehicles in 2011.
 
9. China auto export increased steadily this year. 225,400 vehicles were exported from Jan. to April, up 56.72%. Sales of light trucks are stimulated by the favorable auto export situation.

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