Heavy truck market stocks are expected to be generally higher, distributors pressure the big companies to fight strength


Since April and May of 2011, the heavy-duty truck market has been in a downturn, and the topic of heavy-duty truck inventory is also booming. However, it is understood that heavy truck companies are now avoiding this issue.

Recently learned that SAIC Iveco Hongyan total inventory is about 3,000. In addition, China National Heavy Duty Truck Co., Ltd. understands the inventory, said Sinotruk currently has 40,000-50,000 inventory. However, there are Sinotruck dealers said: "It is understood that the total inventory of heavy truck currently about 70,000 -80,000."

Heavy sales in the heavy-duty truck market did not last until 2011, and the heavy-duty truck market did not appear to be expected, but it was surprisingly cold. Some industry insiders estimate that in 2011, the heavy truck market will have an inventories of 250,000 vehicles under the influence of multiple factors and the sales situation will be severe.

The stock is expected to be generally higher

It is understood that at present, the entire heavy truck industry inventory is estimated at 100,000 -200,000 vehicles. As long as the inventory volume is about 10% of the total production and sales in the previous year, it is within a reasonable range. The heavy-duty truck industry is not an order-based production and sales, and intermediate links must have some reserves. Therefore, 100,000 vehicles are considered normal. If it is 200,000 vehicles, it will be a bit high.

However, the national economic situation is the main reason affecting the trend of the heavy truck market in 2011. The Ministry of Transport strictly enforces factors such as fuel consumption detection and turmoil in North Africa and other internal and external factors. What is even more worrying is that due to the sales volume of over 1 million cars last year, an increase of up to 59.93%, which was constrained by the under-capacity truck companies, the capacity expansion plan was formulated in 2011, and some companies' new production capacity has nearly doubled.

It is reported that the 150,000 vehicle production capacity of the FAW Liberation Changchun Base will have a planned production capacity of 300,000 vehicles. The doubling of production capacity is to achieve an annual sales volume of 420,000 liberation trucks by 2015. China National Heavy Duty Truck Group is building a base for producing 400,000 commercial vehicles annually. Dongfeng has an annual production capacity of 80,000 Shiyan new plant has been partially put into production and Dongfeng Liuzhou 100,000 commercial vehicle production bases are under construction.

As far as the current situation is concerned, overcapacity and excess inventory are facts. The situation is not optimistic. At present, the inventory of the heavy truck market is about 250,000-300,000 vehicles. The reason is that, first, the overall situation this year is not good; second, it is now entering the traditional off-season.

The inventory of 100,000-200,000 units is based on data obtained by manufacturers. The inventory on the market is not a good statistic, and it is not ruled out that some dealers have large inventory. In response, relevant person in charge of Sinotruk disclosed that: “In 2010, because of the good situation in the heavy truck market, some dealers even borrowed money to stockpiling vehicles. However, the market was not optimistic in the first quarter of 2011, resulting in a large inventory, so Dealers have cut prices for promotions."

In addition, heavy-duty truck companies generally expect higher market expectations. In the face of fierce market competition and hidden worries of overcapacity, the sharp price reduction trend will unexpectedly come to an end. In the long run, the outlook for the heavy truck market is not optimistic.

Dealer pressure

Regardless of the exact amount of heavy truck inventory, heavy truck companies face the pressure of inventory is an indisputable fact. The sales volume of millions of heavy trucks in 2010 contained water, which also led to an excessive inventory in 2011. Faced with the phenomenon of no booming season, some dealers have stepped up promotional efforts, such as providing lifelong services and paying in installments.

In 2010, many engineering projects were started. Heavy-duty users rushed to buy heavy trucks for the purpose of transporting goods. Many users bought them in batches of 10 vehicles and 20 vehicles at a time. The supply of heavy trucks was in short supply. In 2011, the number of vehicles used by users for engineering construction was significantly reduced. This has a greater relationship with market overdraft demand.

The significant decline in sales in 2011 was mainly due to the introduction of the “Measures for the Inspection and Supervision of Fuel Consumption of Road Transport Vehicles” issued by the Ministry of Transport. Many vehicles purchased by the users were not in the catalogue, and they were unable to obtain a business permit. The lack of market demand makes it difficult for sales to increase substantially.

Corporate distributors have different opinions

Most people are not optimistic about the heavy truck market in the second half of the year, which also puts some pressure on digesting inventory. In this regard, companies and distributors expressed different views.

Some people think that it is unlikely that all will be digested. After all, this is also a replacement flow. The old ones have not yet been digested and new stocks have appeared. It is unlikely that the cycle will continue to be completely digested.

Some people in the industry believe that the second half of the year is to fight business strength. Large stocks will definitely lower prices. At present, the heavy truck market is also showing a situation of price cuts. Now we can see how much price reductions the company can withstand. The dealers are also very helpless, generally expressed that they must look at the market conditions to determine the future trend. If the market performs well, it will be easier to digest the inventory.

Now it has entered the off-season. Compared with 2010, the inventory is basically the same, but the situation in 2010 is good and the situation in 2011 is not clear. In addition, Shaanxi Automobile Group's sales company believes that “it is certainly not a problem to digest inventories. As far as Shaanxi Auto is concerned, there are currently about 6,000 inventories, which is not high.”

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