Demand for heavy-duty trucks has ramped up significantly over the past three quarters in China, with sales rising to 267,500 units in the first quarter of 2010, a 165 percent increase from the 2009 quarter, according to a report published by ACT Research Co. and China's State Information Center.

The recently released China Commercial Vehicle Outlook provides an overview of the China economy and its impact on sales of heavy- and medium-duty trucks and buses, including details on OEM market share.

According to the report, steady economic growth in China has resulted in increased demand for bulk transport commodities. This has led to significant growth of highway freight transport.

The report says this growth in heavy-duty vehicle sales should continue for the second quarter of 2010, before slowing in the second half of the year. Medium-duty vehicles will maintain a steady and more moderate growth pattern.

Investment, which has been the driving force in the growth of the China economy for several quarters, will begin to slow as the government moves to constrain speculative real estate investment.

"Initial plans to cool the real estate market by increasing supply have not proven successful," said Kenny Vieth, partner and senior analyst with ACT. "However, current efforts look more likely to cool demand, which will have a significant impact on demand for commercial vehicles in the second half of 2010 and into 2011."

The China Commercial Vehicle Demand Outlook is published jointly by ACT and SIC and released quarterly. The next issue will be published in September 2010.




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