China III standard holds sway on auto market

Shanghai, August 28 (Gasgoo.com) China III emissions standard has seen its power over the auto market since it came into effect on July 1. Statistics showed that commercial vehicles underwent month-on-month (m/m) slump both for output and sales in July. The medium-duty truck sales declined by 16.01% year on year, and heavy-duty truck even had the year-on-year(y/y) negative growth both on output and sales, reported Shanghai Securities News today.

Commercial vehicles posted July output at 189,700 units and sales at 177,600 units, down 17.25% and 28.5% m/m respectively. Compared to the same period of 2007, the commercial vehicles saw the output grow by 4.36% and sales fall by 3.35%, according to China Association of Automobile Manufacturers (CAAM).

The large bus, mini-truck and mini-bus enjoyed July sales increase by 37.1%, 48.9% and 37.85% respectively y/y. However, the heavy-duty truck and medium-duty truck both saw sales declines in July. The heavy-duty truck sales fell 26.72% to 18,380 units among its total production of 20,042 units, which also plunged by 54%.

The heavy-duty trucks reportedly have seen the year-on-year negative growth both on output and sales for the first time, with production and sales also down 29.46% m/m and 51.96% m/m respectively.

The light-duty trucks posted better performance in July, with output at 86,257 and sales at 83,456, up 6.95% y/y and 1.79% y/y respectively, but still a 14.42% m/m and 19.24% m/m decrease respectively.

Although light-duty trucks sales went up by small amounts, the industry still lowers their expectations for light-duty trucks.

Commercial vehicle dealers expect the light-duty truck market will turn to be more difficult in the second half of this year as negative consumer confidence and rising prices of automobiles after China III emissions standard may lead to the shrinking of demands for buying cars.