54%, 106, which is the pre-increase in January sales of heavy trucks and excavators. Affected by economic growth, the sales of major construction machinery products have achieved a "good start", laying the foundation for the annual growth station to a new height.
January heavy truck sales record
According to the preliminary data of the first commercial vehicle network, in January 2021, China's heavy truck market is expected to sell more than 180000 vehicles of various types, a significant increase of 54% over the same period last year.
The monthly value of 180000 vehicles means that 2021 has just started the year, setting a new record for January sales in the heavy truck market, setting a new high for January sales-about 63000 more than the previous record in January 2020 (116600 vehicles).
At present, China's heavy truck market has set a new record for the tenth month in a row-from April last year to January this year, the sales volume of the heavy truck market has set a new record for the month, frequently setting a new high for monthly sales.
Three drivers driving high growth
Industry insiders believe that there are three main drivers for the higher-than-expected growth and breakthrough in the heavy card market in January 2021.
First of all, due to the upcoming implementation of the National VI emission regulations for diesel vehicles in the second half of the year, almost all companies believe that in 2021, the "start is a decisive battle", and they must make every effort to compete for a good start and the market in the first half of the year. All companies have made great efforts in terminal promotion and channel distribution, which to a large extent pushed up the sales of heavy truck market in the first quarter.
Secondly, the development of the manufacturing industry creates the conditions for the growth of the road transport industry. Data show that China's manufacturing purchasing managers' index (PMI) was 51.3 per cent in January, above the critical point for 11 consecutive months, indicating that the manufacturing sector continues to expand. The manufacturing industry is the upstream customer of the logistics and transportation industry. Only when the manufacturing industry maintains expansion can the logistics industry grow steadily. Only when logistics users have the enthusiasm and ability to purchase road logistics and transportation equipment-heavy trucks.
Third, short-and medium-distance and branch-line overload control tends to be normalized, and users are encouraged to purchase compliant heavy trucks and standard load trucks. This positive factor that ran through the second half of the previous year to the end of last year is still playing a positive role.
Looking ahead to the full year, Tianfeng Securities analysts believe that in 2021 heavy truck industry sales are expected to exceed market expectations again, the plate is expected to continue to benefit from the expected poor repair of earnings and valuation double-rise.
Construction machinery sector is expected to maintain a high degree of prosperity
As a wind vane and economic barometer of the construction machinery industry, excavator sales have also achieved substantial growth.
According to a grassroots survey by CME Engineering Machinery Network, sales of excavating machines (including exports) are expected to be around 20500 units in January 2021, up about 106 percent year-on-year. By market, the domestic market is expected to sell 17000 units, a year-on-year growth rate of about 112, down 37% month-on-month; the export market is expected to sell 3500 units, a growth rate of about 60%, in January excavator sales growth as expected.
It is worth noting that the year-on-year growth rate in January was higher, due to the low sales of excavators during the Spring Festival in 2020 due to holiday and epidemic factors, resulting in a low base.
Soochow Securities believes that high-speed growth is the same tone. Digger sales are expected to maintain steady growth of 5%-15% in 2021 on a high base, with volatility estimated to remain plus or minus 5-10% over the next few years, and volatility will be much smaller than the previous round.
Dongxing Securities Research Report predicts that the current excavator recovery cycle will continue until 2022, 2021 and 2022 excavator sales reached 352000 units, 369600 units, year-on-year growth rate of 10%, 5%.
China Galaxy Securities Research Institute predicts that the construction machinery sector will maintain a high prosperity in the future, the competitiveness of domestic mid-to-high-end products will gradually increase, and the industry's leading share will grow steadily. Industry leader Sany Heavy Industries and core components suppliers Hengli Hydraulics and Eddy Precision continue to be bullish.
Source: Iron Armor Engineering Machinery Network
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