As we all know, in 2017, stimulated by multiple favorable factors, the heavy-duty truck market achieved a record-breaking sales volume of 1.117 million units, setting a new historical high. In January 2018, the heavy-duty truck market temporarily maintained this high momentum, with a monthly sales volume of 98,000 units, breaking the sales record of 83,000 units in January 2017. This represents an 18% increase compared to the same period last year and a significant 48% increase compared to December last year.

Commercial Vehicle Network believes that the reasons for the record-breaking performance of the heavy-duty truck market in January mainly lie in the following aspects. Firstly, as many enterprises had reserved a portion of their invoiced sales for the next year in December 2017, a "good start" in January 2018 was a foregone conclusion. Conservatively estimated, this portion of sales amounts to approximately 10,000 to 20,000 units, and most of it will be reflected in the overall market sales in January 2018.

Secondly, dealers of various heavy-duty truck enterprises are preparing orders and stocking products for the traditional peak season in March and April. Furthermore, this year's Spring Festival came relatively late, with the Lunar New Year's Eve falling on February 15th. Therefore, the seasonal logistics markets such as fruit and vegetable transportation in January are still relatively active.

In December 2017, fixed assets investment gained momentum, driving the demand for new vehicles in the construction machinery and heavy-duty truck markets. According to statistics from the Excavation Machinery Branch of the China Construction Machinery Industry Association, 25 original equipment manufacturers sold a total of 140,303 excavation machinery products of various types (including exports) in 2017, marking a year-on-year increase of 99.5%. Specifically, sales in December 2017 amounted to 14,005 units, representing a year-on-year surge of 102.6% and a month-on-month increase of 1.32%. The unexpectedly strong performance of the construction machinery market in the month following 2017 was closely tied to the growth in downstream demand. Thus, the heavy-duty truck market, particularly the construction vehicle segment, at the end of 2017 and the beginning of 2018, was similarly driven by robust downstream end-user demand.

Despite the positive start, it is worth noting that in 2018, due to the further weakening of the impact of favorable factors such as the overload control measures, as well as the early purchase and overdraft in the heavy-duty truck market brought about by the overload control policies, the orders in the tractor terminal market saw a significant decline in January (also due to the approaching Spring Festival). The market is likely to decline by more than 20% for the whole year, casting a shadow over the logistics vehicle market. In 2018, a significant decline in the tractor market is likely to be unavoidable. The growth points of the market mainly depend on construction vehicles. Focusing on the counter-trend growth targets announced by various enterprises, heavy-duty truck manufacturers will launch more new products, introduce more new marketing strategies, and even implement more promotions and preferential policies. The competition in the heavy-duty truck market in 2018 will become even more intense.

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