China’s Slump in Truck Sales Expected to Accelerate

Demand for commercial trucks in China, which fell 3% in the first half of 2014, could shrink even faster in the second half, the Financial Times reports.

Analysts blame the slump on China's slowing economic growth rate and higher truck prices caused by government-mandated pollution-control equipment.

Analysts also say that many fleet operators in China already have more trucks than goods to be carried. When economic conditions strengthen, they predict, operators will simply use their existing fleets more efficiently. The FT notes that dwindling demand is strongest in cities and provinces that support heavy industries.

A prolonged slowdown in heavy-truck sales would ripple across the global commercial truck industry. The FT notes that China accounts for nearly half the world's demand for trucks weighing 14 tons or more. The newspaper says sales of heavy trucks in the country peaked at nearly 900,000 units in 2011 but dropped to 600,000 last year.