China National Heavy Duty Truck: Steady Truck Production Leads to Steady Production and Sales


The output data can better reflect the company's operating conditions. The company’s production for January and February was 10,137 units, and its sales volume was 5,226 units; the Group’s production in January and February was 10,346 units and its sales volume was 9,793 units. The Group’s production and sales data includes heavy trucks (company data) and medium- and heavy-duty trucks. Due to the limited output of heavy-duty trucks in the group, the two can basically be equated in terms of output. The difference in sales data comes from the difference in statistical caliber: Group sales are outbound data, and the company is billing data; since the heavy trucks usually have a conversion link before they are delivered to customers, the conversion period is as short as one week and as long as one month, resulting in both data. There is a large deviation. As the company organizes production in strict accordance with the order, the company's output can more timely reflect the company's operating conditions.

Engineering orders support the company's production and sales boom. After the Spring Festival this year, the company has more orders for dump trucks. About 80% of the orders come from the construction of supporting orders for construction projects. The logistics industry orders are only about 20%. In history, the engineering orders account for about 40%, and the logistics orders are 60%. According to the laws and regulations of the engineering industry, the construction of the project will begin during the construction period of the project within 3 to 6 months. The project construction period will bring the demand for animal vehicles, and the heavy truck industry will still have a good market performance in the second half of the year.

The company's performance is stable. On July 1, 2008, following the industry’s implementation of the three national standards, the industry experienced a substantial decline. With the cost advantage of EGR products, the Group’s market share increased significantly. From January to February 2009, the market share increased from 21% in 2008 to 34%. The group’s production capacity design is generally conservative. At present, the group’s normal annual production capacity is 100,000 units. The industry blow-out period, due to the inability to meet all orders, the market share will generally decline, the Group’s first half of 2008 was only 18%, but once the market entered During the downturn, the Group's production and sales fluctuations will be much smaller than the industry average. Based on the current market size of heavy trucks, 90% is the lower limit of the Group's capacity utilization rate.
View related topics: China National Heavy Duty Truck Breaks Monthly Sales Record for National Heavy Truck Industry


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