Buyer Preference Shifts from Low-Cost to High-Value Commercial Trucks in China, Finds Frost & Sullivan
End users are willing to pay a premium for safety, convenience and strong aftersales services
HONG KONG, Sept. 15, 2015 /PRNewswire/ -- Till recently, sales of light, medium and heavy-duty commercial trucks in China were at an all-time low owing to a slow economy and the lack of innovative design ideas. However, the market is seeing a resurgence as rapid urbanization leads to a flurry of infrastructure expansions, accelerating the demand for commercial trucks both directly (logistics) and indirectly (construction). As a result, offering a competitive selling price, ensuring strong aftersales services, and improving technology and supply chain features will allow participants to expand their share in the Chinese commercial trucks market.
New analysis from Frost & Sullivan, Strategic Analysis of Chinese Light, Medium and Heavy-Duty Commercial Truck Market (https://www.frost.com/p895), finds that unit shipments stood at 2.65 million in 2014 and estimates this to reach 3.63 million in 2022 at a compound annual growth rate of 4 percent.
For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/CHN_PR_JZheng_P895-18_24Aug15.
"A growing number of businesses and the e-commerce trend sweeping the country are creating new opportunities for postal delivery and logistics services in primary and secondary industries," said Frost & Sullivan Automotive and Transportation Research Analyst Chan Ming Lih. "Hence, the adoption of heavy duty trucks and last-mile delivery light-duty vehicles is on the rise."
As purchasing power goes up, end users, fleets and leasing enterprises in China are increasingly demanding vehicles incorporated with sophisticated features. The need for value-added solutions will center on vehicle service and maintenance, financing, insurance and telematics-based fleet management.
Chinese original equipment manufacturers (OEMs) are gearing up to meet these requirements with a slew of truck launches. Consequently, the Chinese commercial truck market is evolving from a basic, original equipment sales, trade, leasing and financing model to an advanced logistics solutions entity.
"OEMs must focus on reducing component variations across product lines to enhance their value proposition," added Frost & Sullivan Automotive and Transportation Research Analyst Lai Jia Yong. "Although end users will favor Chinese suppliers over international brands, increased collaboration between domestic and foreign companies will be critical for technical innovation."
OEMs that fight the turf war on stronger technology rather than lowest cost will eventually stand apart in the Chinese light, medium and heavy-duty commercial truck market.
Strategic Analysis of Chinese Light, Medium and Heavy-Duty Commercial Truck Market is part of the Automotive & Transportation (http://ww2.frost.com/research/industry/automotive-transportation) Growth Partnership Service program. Frost & Sullivan's related studies include: Strategic Analysis of the Automotive Connected Services Market in China, Strategic Analysis of the Chinese Automotive Aftermarket, Strategic Analysis of Chinese Powertrain Market, Global Medium- and Heavy-Duty Low-Cost Truck Market, Truck Video Safety Solutions Market, Executive Impact Analysis of Big Data in the Trucking Industry, and Executive Impact Analysis of Shale Gas on Global MD-HD Truck Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Strategic Analysis of Chinese Light, Medium and Heavy-Duty Commercial Truck Market
P895-18
Contact:
Julie Zheng
Corporate Communication – Greater China
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M:+852 6877 5511
E: julie.zheng@frost.com
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