China's H1 engine sales grow faster than expected

Shanghai, July 28 (Gasgoo.com) At the beginning of this year, some industry experts predicted that the sales growth of China's engine sector would slow down in the first half. But the latest figures show that the sales of engines had grown rapidly, much higher than expected, reported China Auto News on Friday.

From January to June, Sinatruk sold nealy 100,000 engines, rising 40% year on year (y/y) and achieving 70% of the sales target of 2008; Dongfeng Chaoyang sold 85,817 engines, up 10.84% y/y, 55.43% of the annual target; Shanghai Diesel Engine Co sold about 66,000 engines, up 32% y/y, 60% of the annual target; the output and sales of engines by FAW Wuxi Diesel Engine Works both exceeded 150,000 units in the six months.

The booming Chinese economy has been a driving force behind the country's sales growth of vehicles and engines in the fist half of the year. And another important factor is the implementation of the China III emission standards starting on July 1, 2008 -- many potential customers rushed to buy vehicles ahead of that date to avoid the more stringent standards and the brisk auto market pushed the rapid growth of engine sales in May and June.

The increase in auto exports also contributed considerably to the growth of engine sales, and the sweeping reconstruction projects in the May 12 earthquake-devastated regions in southwestern China need larger numbers of heavy trucks and civil engineering vehicles, which will help raise the sales for engines.

China's engine manufacturers remain optimistic about the prospects of their product sales for the second half of the year and determined to make more engines to meet the new emission standards and the growing market demands.