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Profiling China's Heavy Truck Market

By : Eddie Huang, Martin Joerss, Geoff Kau Axel Krieger, Min Shao, and Chaogiong Wu

While oversupplied, China's heavy truck market offers attractive opportunities for OEMs willing to meet the evolving needs of their end customers. Winning players are taking fundamental steps to help customers increase their total value of ownership and achieve world-class levels of productivity and cost efficiency.

While boom times have characterised China's passenger car market over the past two decades, the country's heavy truck sector has experienced high levels of overcapacity and intensifying competition. The industry's current capacity utilisation ratio is under 50 percent and will likely remain at or below 75 percent through 2020. While the market itself will continue to face too much capacity, a number of new entrants have gained a foothold in China and have begun to capture large shares of the heavy-duty truck market

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