Sales of China heavy trucks decreased 33% in the first five months this year over last year, and we predict that the sales will recover in the second half year.
The drastical decreasing sales of heavy trucks can be attributed to the following two reasons, one is the macro economy. China economy growth speed has been 7% in the first quarter, the lowest in the past 30 years, and the figure maybe even lower in second quarter this year. The manufacturing industry is grwoing rather slow, especially the mining and steel industry, which cause the decreasing needs for heavy trucks.
The second is the infrastructure construciton. The fixed assets investment are growing rather low, and the figure was 11.4% from Jan to May, the lowest in history. And the investment on real estate is 5.1%, which affected the use of engieering vehicles, and the needs for engineering vehciels dropped over 70% from Jan to May this year.
But why we say that the sales heavy trucks will increase in the second half year?
One is that macro economy. Central government is doing every necessary to recover economy. And the recent three secession, Central Econony Conference, executive meetings of the State Council and Standing Committee of Political Bureau, are all placing economy works as first priority, and many meatures are implemented in early June to promote the economy.
Second is that Ministry of Finance has deployed local government bond replacement stock of debt for another 1,000 billion Yuan, and they have ratified seven railways and airports and the total investment are over 120 billion Yuan, and the National Development and Reform Commission has ratified infrastructure construction programs for over 450 billion Yuan. And these programs will start to work in the second half this year.
