The growing economy that is China saw a massive increase in heavy-duty commercial vehicle sales in the first quarter of this year, according to a research report from ACT Research Co. and China’s State Information Center (SIC).
According to the report, China Commercial Vehicle Outlook, growing demand for bulk commodities powered the surge, which totaled 267,500 vehicles sold in the quarter, up 165% from 2009. The forecast adds that continued strong growth is expected in the second quarter before slowing in the third and fourth quarters.
The report says investment, which has been the driving force in the growth of China’s economy for several quarters, will begin to slow as the government moves to constrain speculative real estate investment.
“Initial plans to cool the real estate market by increasing supply have not proven successful,” said Kenny Vieth, partner and senior analyst with ACT. “However, current efforts look more likely to cool demand, which will have a significant impact on demand for commercial vehicles in the second half of 2010 and into 2011.”