Domestic market weakens: Shaanxi Auto bucks the trend

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On July 11, the China Association of Automobile Manufacturers (CAAM) released relevant data: in June, commercial vehicle production and sales were completed 261,000 and 281,000 respectively, down 33.2% and 37.4% year-on-year; from January to June, commercial vehicle production and sales were completed 1,683,000 and 1,702,000 respectively, down 38.5% and 41.2% year-on-year. Among them, from January to June, the production and sales of passenger cars were completed 176,000 and 180,000 respectively, down 31.8% and 30.5% year-on-year; the production and sales of trucks were completed 1,507,000 and 1,152,000 respectively, down 39.3% and 42.2% year-on-year. It is expected that commercial vehicle sales in 2022 will be 4 million units, down about 16% year-on-year.

Regarding the commercial vehicle market problem, SHACMAN bluntly said in an interview with Automotive Zongxiang: "It's not a supply-side problem, but the demand side is too weak, and there is an overall overcapacity of domestic commercial vehicles."
In the first half of this year, the commercial vehicle market demand shrank, and the terminal demand for car purchases weakened, while the operating costs of car companies rose due to the international situation, raw materials, and oil and gas price fluctuations. In response to the current industry situation, "Although we see a cold winter, we are ready to welcome spring after the winter. Unlike consumer goods, commercial vehicles are a means of production, highly correlated with the national economy, our country's economy is resilient, and full of potential, and the fundamentals of the long-term positive have not changed, and will certainly be on track to high-quality development, the current difficulties are temporary, and now the confidence is very important, and we must be confident in the future development!"

From the January-June 2018-2022 domestic heavy truck sales, 672,000 units in 2018, a year-on-year increase of 15.11%; 656,300 units in 2019, a year-on-year decrease of 2.33%; 816,000 units in 2020, a year-on-year increase of 24.36%; 1,040,000 units in 2021, a year-on-year increase of 27.4%; 2022 is 378,000 units in 2022, a year-on-year decline of 64.0%, the lowest sales volume and the largest year-on-year decline in the same period over the past five years.

The annual sales volume of heavy trucks in 2020 is the best period in history, reaching 1.62 million units.SHACMAN believes that it is more normal for the annual sales volume of domestic heavy trucks to be maintained at one million units. "The current demand for commercial vehicles still exists, and as long as the economic situation is favorable and stable, we SHACMAN will have no problem."

In June 2022, Shaanqi's single-month sales of heavy trucks were 12,400 units, jumping to first place in the domestic industry rankings, which is also the first time that Shaanqi's single-month sales of heavy trucks ranked first in the industry. From January to June, Shaanqi's sales of 54,100 units ranked fourth in the country, a year-on-year decline of 62%. Take the domestic dump truck segment as an example, according to the data of Fangde.com, the sales volume from April to June fell by more than 90% for three consecutive months, of which the year-on-year drop of 90.4% in June. However, the sales volume of Shaanqi in April was 754 units, 622 units in May, and 501 units in June, with a market share of 30.6%, 28.7%, and 25.4% respectively, occupying the first place in the industry for 3 consecutive months; from January to June, the sales volume of Shaanqi dump trucks was 4,185 units, ranking the first in the industry. It can be said that Shaanqi occupies a pivotal position in China's commercial vehicle industry, especially in the field of heavy trucks.