After the epidemic, China's heavy truck market demand fell from a cliff to a blowout growth, showing a V-shaped change.

According to the April production and sales data released by the China Association of Automobile Manufacturers (CAAM), China's heavy-duty trucks sold a total of 75,783 units, and in May, the domestic heavy-duty truck market sold about 175,000 units, a year-on-year increase of 62%.

Heavy trucks ushered in the blowout growth

When it comes to heavy trucks, we have to talk about a few leading companies - FAW Jiefang, Dongfeng Group, China National Heavy Duty Truck Corporation (CNHTC), Shaanxi Heavy Duty Truck Corporation (SHADC) and BAIC Foton.

In April this year, domestic heavy truck sales hit a record high, **** sales of 191,000 units, an increase of 61% year-on-year, in May, the four listed automobile enterprises heavy truck sales of 71,543 units, an increase of 89% year-on-year; January-May heavy truck sales of 230,258 units, an increase of 22% year-on-year.

Meanwhile, compared with the passenger car market, the market concentration of heavy trucks is higher, with the market share of the top 5 heavy truck companies reaching about 85%.

Logic behind the high sales volume

Short-haul overloading control superimposed on the release of renewal demand.

January 1, 2020, the national highway "by axle toll", and the application of highway entrance non-stop weighing and detection system is expected to effectively limit the capacity of a single vehicle, to enhance the retention of heavy trucks, to a certain extent, to stimulate the industry's replacement of new.

It is reported that the relevant departments have stipulated that will be phased out by the end of 2020, the existing national three standard diesel trucks, the existing national three standard heavy trucks need to be replaced by the national five, national six standard vehicles, only in the Beijing-Tianjin-Hebei and neighboring regions, Fenwei Plain, out of the national three and the following emission standards for the operation of medium and heavy-duty diesel trucks more than one million vehicles.

Large-scale infrastructure is also one of the reasons for the increase in sales of heavy trucks.

Yueyang Kai Securities has released a research report pointed out that, from the demand side, the policy side and the supply side of the three dimensions, the demand side, the counter-economic cycle of infrastructure under the bottom of the economy, is a determining factor in the growth of heavy truck sales.

From the bond financing of nearly one trillion in March this year can be seen, 16% is flowing to the infrastructure industry, 30% is real estate and construction, and a large proportion of the other parts of the final flow to the infrastructure.

Different from the previous "old infrastructure", this round of "new infrastructure" is mainly focused on 5G, ultra-high voltage, intercity high-speed railroad and intercity rail transit, new energy vehicle charging piles, big data centers, artificial intelligence, industrial Internet, Internet of Things (IoT), etc. and other fields.

It can be seen that in this round of "new infrastructure" boom, the automotive industry will also benefit.

Heavy truck sales in addition to the policy stimulus, of course, but also inseparable from the logistics, fixed asset investment gradually restored and brought about by the pulling effect.

From the real estate investment as well as real estate development and construction investment amount, March, April is gradually recovered to the same period last year level, compared with the cumulative number of January-February also have obvious improvement.

Automotive finance plays an important role in the field of heavy trucks

More than a decade ago, most of the owners who purchased heavy trucks paid full price for their vehicles, but nowadays, with the change in the concept of consumption, both business and personal, financial and consumer thinking is more flexible.

Like the traditional passenger car sector, we can roughly divide heavy truck finance into banking and non-banking.

Banks have lower interest rates, higher down payments, less structured layering (i.e., more fixed down payment and repayment ratios), and longer disbursement times, making them a low-cost but inflexible lending model.

Non-bank financial institutions will have relatively looser loan terms, lower down payment ratios, and shorter lending times, but the loan interest rates are usually higher, making it a more flexible and costly lending model.

Because in the heavy truck finance field there is a general requirement for dealers to bear joint and several liability, so heavy truck financial institutions, mostly direct, dealer mode business, through the agent mode of business heavy truck financial institutions are only a few.

"The commercial vehicle market is selling new cars at a profit of 800 billion dollars a year, while the commercial vehicle after-market services are about 5 trillion dollars a year."

For the benefits generated by the commercial vehicle financial market, Zhong Weiping, secretary-general of the Commercial Vehicle Professional Committee of the China Automobile Dealers Association, believes that it will still be able to achieve a 15 percent growth in the future, mainly because China now retains a stock of about 35 million vehicles. There are 25 million licensed trucks.

In recent years, financial services in China's commercial vehicle industry chain in the leverage role is more and more important, the financial penetration rate is getting higher and higher, the commercial vehicle financial chain is very long, the new car to have a financial, used car to have financial, oil also need to have a financial, such as road tolls, ETC, maintenance need to be supported by the financial, the annual demand for financial is very large.

Commercial vehicle finance market is a "blue ocean", but because of the weak foundation of the second-hand commercial vehicle assessment system, the wind control system is not sound, vicious competition with each other and other factors exist, want to form a sound, standardized market still need a way to go.

This article comes from the author of the automobile home car, does not represent the views of the automobile home position.