In 2023, Chinese cars will be a big hit in the Russian market, not only with common brands such as Great Wall and Chery, but also with Chinese heavy-duty trucks in the commercial vehicle sector selling well in Russia to the point of being out of stock.
According to the data, the total sales volume of the Russian truck market in 2023 will be 144219 units, a year-on-year increase of 703%。Among them, Chinese brands accounted for more than 61% of the market sales, Russian brands accounted for about 29%, and brands from other countries accounted for about 10%. China National Heavy Duty Truck ranks first among Chinese brands with sales of 30,758 units, accounting for 2133%。
One of the reasons why Chinese heavy trucks are favored in the Russian market is that they are cost-effective, only about 50% of other brands, but the performance can reach about 80%, which is deeply loved by Russian truck drivers. In addition, China Heavy Motors often offers a three-year free warranty with unlimited mileage, further adding to its appeal.
Unlike consumer electronics, heavy-duty trucks enter the maintenance phase from the first day they are sold. Even if the export of China's heavy trucks is suddenly interrupted, hundreds of thousands of heavy trucks will bring huge business opportunities to the maintenance market.
SINOTRUK's development history is quite legendary, the company has experienced bankruptcy and reorganization, but now it has been reborn and has become one of China's top heavy truck companies. According to the company's January 2024 earnings forecast, net profit attributable to the parent is expected to increase by 370% to 420%.
The recovery of the heavy-duty truck industry also indicates the recovery of the infrastructure industry. The operating rate of construction machinery in the country is 5857%, the average operating rate of hoisting equipment is 7303%, showing the steady and positive trend of various infrastructure construction. Sales of natural gas heavy-duty trucks have also surged due to increased environmental requirements.
In the face of performance growth and increased cash reserves, whether Sinotruk should consider scale expansion, such as building overseas factories or expanding overseas sales channels, will become a question that the company needs to think about in the future.
At this moment of vitality and opportunity, SINOTRUK is bound to usher in a broader space for development and contribute to the better performance of China's manufacturing industry on the international stage.