Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

China’s heavy truck sales increased by 89pc to 140,000 units in July from prior July but fell by 16pc from June, according to initial data by First Commercial Vehicle Network. In the Jan-July period, cumulative sales of heavy trucks increased by 31pc to 959,200 units from the prior year. Annual sales of heavy trucks is forecast to reach 1.4mn vehicles at a growth rate of 19pc.


Heavy vehicle sales have continued to improve in July amid positive sentiments from the first half of 2020 and the Chinese government’s emphasis on controlling emissions and reducing air pollution in the country. Provincial governments in China have doling out incentives to scrap old diesel-powered trucks and implementing plans to phase out diesel trucks that are below China’s III emission standards by conducting roadside spot checks and tests on polluting vehicles. Local government are also imposing strict overload controls, thereby stimulating heavy truck sales. Recovery in the construction sector is also driving the demand for construction vehicles.


China’s heavy truck sales have had a stellar first half, with January sales at a record high of 18.2pc compared to the prior year, followed by a lag in February and March, with sales down by 51.8pc and 19.3pc, respectively from the prior year. In April, the heavy truck sales recovery and with 191,000 units sold, up 61pc from the prior year and May sales hit 179,000 units, up by 66pc. In June, China’s heavy truck sales June increased by 63.3pc to 169,000 vehicles.


Going ahead, commercial vehicle sales are expected to improve amid plans to phase out 1mn medium and heavy-duty diesel-powered trucks in the Capital Economic Zone or Beijing-Tianjin-Hebei and surrounding areas, and the Fenwei Plain by the end of 2020. Other provinces including Henan, Hebei and other regions have also issued guidelines to eliminated commercial vehicles below China III emission standards.

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