Imported Trucks in China Suffer a Depression
www.chinatrucks.com: “From January to August 2013, the imported trucks accumulate 9000 units, down by 41.99% compared to the same period of last year. The import of 20t and above HD trucks decreases the most, thus lowering down the whole import volume,” Zhu Xianglei says, director of Data and Resources Center of CATARC, at 2013 China (Suizhou) International Special Vehicle Industry Development Forum.
Trends show that the import market of China presents an obvious periodicity with 4 years a cycle. As the demands for high-level trucks increase over the years, from 2010 to 2012, the imported trucks have been maintained at a rather high level. But the drop of imported volume in 2013 proves this periodicity.
In mentioning of imported trucks, “high-level, good quality and high grade” are three words occurred in one’s mind. Imported trucks, certainly entering the high-level market, have to make further segmenting this limited market.
“Among all imported brands, Benz has a bigger market share in stirring truck and chassis for pump truck markets; MAN and Volvo chassis are following Benz; there were some IVECO chassis before but a few now. In terms of tractors and large cargo transportation vehicles, Benz, MAN and Scania are most popular brands but the proportions are quite different. MAN trucks hold the majority in firefighting trucks, while among high fire trucks, Benz and Volvo are commonly seen in this field, while IVECO, Duff and Scania are rarely seen,” Tan Xiuqing analyzes, “there are some historical reasons for this. These trucks when entering the Chinese market have differentiated focus so with years of development, they form their own distinctive advantages in different fields.”
Volvo heavy truck
Yet such a segmented market strategy limits the sales volume even through maintaining a higher profit. “The imported volume is not large over recent years,” said by an industrial insider from European vehicle association.
Good quality doesn’t mean available to everyone
As the saying goes that good prices, good quality. There is no doubt that imported trucks have higher prices as the quality is the best. This has been proved by Chinese users and explained by many examples.
However, the reliability is only one requirement of users. “Imported trucks have very good quality but consume too much fuel,” said by Yang Wensheng who is General Manager of a Shenyang logistic company, “our company used to have two European imported trucks. The using effect is rather good and there is almost no repair in one year. But it consumes too much fuel. The fuel consumption per hundred miles reaches 35L. If the speed is higher, it will consume 38L-39L.”
Assistant to General Manager of Sanxin Refrigeration and Storage Company explains that “European famous brands are unaccustomed to Chinese roads because these brands are all high-speed vehicles with economic speed around 95 to 105 miles/hour. Chinese road conditions obviously fail to meet the standard because the economic speed is 60-70 miles/hour. Thus by comparison, the fuel consumption of foreign brands is much higher than domestic ones. It is not because the imported brand consumes more fuel, but because it saves fuel in a high speed.”
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