China's Small Truck Sales Gain on NEV Subsidies, E-Commerce Despite Vehicle Market Dip
Quan Xiaoxin
DATE:  Jul 08 2019
/ SOURCE:  yicai
China's Small Truck Sales Gain on NEV Subsidies, E-Commerce Despite Vehicle Market Dip China's Small Truck Sales Gain on NEV Subsidies, E-Commerce Despite Vehicle Market Dip

(Yicai Global) July 8 -- Sales in light-duty trucks rose 2.7 percent year on year in China to 826,800 despite a 13 percent drop in total car sales because of new energy vehicle subsidies and growing demand in e-commerce logistics, industry insiders told Yicai Global.

Beiqi Foton Motor, China's biggest retailer of medium and small-sized trucks, sold 14,600 medium-duty and 180,200 light-duty vehicles in the first six months this year, a year-on-year gain of almost three-fold and 13.5 percent, respectively, according to data from the Beijing-based company. Its June sales were particularly good with medium-sized truck shipments surging 91 percent to 1,846, while those for light trucks gained 5.7 percent to 31,121.

Lightweight trucks are mainly used in urban logistics and small-scale regional transportation of consumer goods. The demand for such logistics has increased in recent years due to the growth in online retail, car industry analyst Zhang Qiang told Yicai Global.

Government support for NEVs also continues to be strong and recent adjustments to subsidies are pushing demand for green light trucks, Zhang said.

"As a result, new energy light trucks are likely to replace conventional vehicles in the urban logistics market," he said. "Carmakers will need to seek shares in the NEV market and promote investment and development of related technologies and products."

At the end of last year the government cancelled some of the business licenses required for truck operations with a load of 4.5 tons and below, a dealer of JAC Motors told Yicai Global, encouraging more people to buy these vehicles. Small trucks are also less likely to be affected by factors such as fixed asset investments, the added value of industrial enterprises and export volatility, Zhang added.

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Keywords:   Lightweight Trucks,Industry Analysis,Business Performance