Commercial vehicle exports continue to fall and passenger trucks are in the doldrums
At present, the customs' export statistics for the first quarter have not yet been released. However, based on feedback from enterprises, it seems that commercial vehicle exports from January to March will not be very strong. Since October 2008, overseas sales of Chinese automobiles began to decline, with a sharper drop in November and December. According to this trend, the export situation for the first quarter is not optimistic, and commercial vehicles are no exception, said Fu Peizhao, Deputy Secretary General of the China Import and Export Chamber of Commerce.
Just like the unseasonably cold weather this year, the overseas sales of commercial vehicle companies in the first quarter are filled with "chill." Most bus companies have experienced a decline in exports. Zhu Yuanbing, head of Yutong Bus's overseas market under the Ministry of Commerce, explained that since China’s main export destinations are emerging markets, they have been affected by the financial crisis, particularly those with oil-based economies. This has reduced their purchasing power. Although some countries still have demand, they lack access to international financing, making it difficult to make purchases.
Yutong reported a decrease in overseas orders from January to February, with a downward trend that started in the second half of last year. Zhu stated that the market is sluggish, and their 2009 export plan remains the same as the previous year, with potential adjustments if the market improves later in the year.
Similarly, Shaolin Coach Group also faces challenges. Tang Yanbin, Minister of International Trade at the company, noted that currency devaluations in Central Asia, Southeast Asia, and Russia have weakened the competitiveness of their products. For example, Kazakhstan's currency has dropped by 30%, while Russia's has fallen by 50%. These devaluations lead to higher prices for Chinese cars, which limits sales. With profit margins only around 5% for passenger vehicles, companies are struggling to reduce prices without compromising capital.
Tang also agreed with Zhu's view that some countries still have demand but emphasized that orders are now much smaller—often less than 10 units. In January and February, the company sold just over 20 vehicles, and its goal of exporting 1,000 vehicles this year now seems unlikely.
Sun Dongli, director of the China Overseas Marketing Planning Department, mentioned that current sales are worse than expected. His company exported PKD (partial kit) vehicles to the U.S. in January but had no orders in February. The marketing team is currently trying to gather order information in April.
In contrast, Dajinlong had a notable success. On February 14, the company secured an order for 406 buses from Senegal, with 402 of them being exported through CKD (completely knocked down) and assembled locally. The project value exceeded RMB 160 million, and the order is expected to be completed within eight months.
Han Jinhong, manager of Daikin Dragon's overseas sales department, said the company has performed well in overseas markets despite some difficulties, such as in Russia and Ukraine. From January to February, overseas sales increased slightly. Han added that different regions have different sales seasons—Europe peaks in March to June, Africa and the Middle East have no specific season, and Southeast Asia sees activity toward the end of the year. Despite the tough market, Daikin Dragon is working hard to increase exports and aims to achieve growth in 2009.
Truck companies, compared to passenger car manufacturers, have seen a more modest decline in exports driven by construction vehicle demand, but the outlook remains uncertain. Li Jian, Minister of Overseas Markets at Shaanxi Jianxi, reported that the company sold between 4,000 to 5,000 vehicles from January to March. Due to the financial crisis and payment risks, the company now requires full payment unless it's an exclusive agent, which also demands a deposit of over 50%.
While South America has been hit harder, the Middle East has seen a drop due to its oil-dependent economy. However, increased investment in Africa has stimulated some demand. A major contract with Algeria for 3,200 heavy trucks was signed in December 2008, with the first 500 delivered at the end of the year and the rest scheduled for delivery by June 2009. Shaanxi Auto plans to build four assembly lines in Algeria to support long-term market development.
Sinotruk officials indicated that the first-quarter export figures are not yet available, but they expect them to be weak. The company is focusing more on the domestic market, leveraging the RMB 4 trillion investment and post-disaster reconstruction efforts in Sichuan to offset earlier declines.
With Russia increasing trade barriers, exports to the region have become problematic. Chen Huisong from Anhui Hualing Automobile Group noted that some shipments were delayed due to policy changes. While large-demand markets haven’t improved, existing orders remain small. The company expects a recovery in the second half of the year.
Hu Dan of Dongfeng Commercial Vehicles said that although Russia is largely stalled, the company continues to receive orders from Vietnam, Algeria, and South America. Despite the depreciation of the Vietnamese dong, local dealers have achieved good sales. Dongfeng is implementing a “market opportunity†strategy, planning to open three overseas offices and improve after-sales logistics.
Many companies hope the government will introduce policies to stimulate exports. Zhu Yuanbing urged support in international financing and export credit guarantees, noting that approval quotas are tight. Yutong faced delays in exporting 2,500 vehicles to Cuba due to guarantee issues.
Tang Yanbin also called for preferential policies like higher export tax rebates and subsidies. Xu Changming from the National Information Center argued that the issue is not funding but market demand, citing global economic slowdown, the U.S. dollar as a base currency, and rising trade protectionism.
Fu Peizhao acknowledged the limited role of government stimulus, stating that the international credit system is broken and cannot be fixed by China alone. He advised companies to focus on improving sales while waiting for the market to recover.
Fu also highlighted the growing importance of the South American market, noting that trade with South American countries has increased rapidly since 2007. China has signed free trade agreements with Chile and Peru, and Chile recognizes China’s certifications, offering opportunities for Chinese vehicles to enter the market.
A pallet truck is a light and small handling equipment with two cargo-like legs. Can be inserted into the free fork hole of the pallet. Widely used in loading, unloading or handling operations.
Semi-electric lifting truck, manual truck, fully automatic lifting truck
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