China continues heavy truck export push

China’s heavy truck business is winning more market share in and outside the country. Both the output and selling of China’s heavy trucks have surged at home since 2007. They occupy 10% of overseas market share. The prosperous heavy truck market is benefiting from four factors, including China’s favorable macro-economy, development of professional logistics and transportation business, climbing demand of heavy trucks triggered by increased national projects, and the charge-by-weight policy. Statistics show that every 1% of GDP growth will bring about 16% of truck demand increase, and each 10-million-yuan (US$1.43 million) growth in fixed asset investment can produce a demand of 15,000 vehicles. Heavy truck is one of China’s leading products for export because of its technical and price advantage. China’s export of heavy trucks reached 14,000 vehicles in 2007, representing 60% of the total. At present, exports of light and mini trucks of 50,000 tons below represents the majority of China’s vehicle export. (May 12, 2008)