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Commercial Vehicle Sales Resurge Soon
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International accounting firm KPMG said China's commercial vehicle sales will soon be growing lustily again after a dip in 2005.

 

"We believe the market has bottomed out and will soon recover its long-term growth trend of around 10 percent per year," said KPMG in a recent report.

 

Statistics show that the industry had a compound annual growth rate of more than 10 percent from 1997 to 2004 but dropped slightly last year, according to the report.

 

Sales dipped in 2005 as a result of the Chinese government's austerity measures to discourage over-investment in fixed assets, said KPMG.

 

Commercial vehicles sold last year -- both delivery and passenger vehicles -- accounted for 46 percent of the country's total auto output, according to KPMG.

 

Sales of trucks and buses rebounded by 8 percent in the first six months of this year compared with the same period last year, according to the report .

 

The firm said China sold 1.5 million commercial automobiles in the first half of the year, with mainland manufacturers capturing a market share of 95 percent.

 

Statistics show that exports of China's commercial vehicles also soared, with the compound annual growth rate from 2001 to 2005 hitting 80 percent.

 

Last year, 118,000 commercial vehicles worth US$1.17 billion were exported to more than 70 countries.

 

KPMG predicted that Chinese producers would increase their sales in Western Europe and North America as well as in smaller markets like the Middle East and African countries.

 

Meanwhile, more acquisitions, mergers and listings are expected for domestic producers, said KMPG.

 

(Xinhua News Agency October 21, 2006)

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