"Light truck sales have dropped significantly this year, and we're now experiencing negative growth," said a light truck dealer at the Liaobu Automobile Market when interviewed by reporters a few days ago. According to available data, from January to August this year, the total light truck market in Dongguan reached approximately 4,000 units, showing a slight increase of 1% to 2% compared to the same period last year. However, sales of mid- to high-end models from brands like Qingling and Jiangling have barely grown, with some even experiencing sharp declines.
With the overall market volume remaining relatively flat, low-end light trucks priced between RMB 30,000 and 50,000 have become the biggest winners in the current market. Industry analysts suggest that this shift is partly due to anti-dumping measures, rising production costs, and concerns over the quality of domestic light trucks. As a result, factory buyers in Dongguan are increasingly turning toward more affordable options, making the low-end segment the mainstream in the local light truck market.
One key factor behind the decline in mid- to high-end sales is the changing economic structure in Dongguan. The primary buyers of these higher-end vehicles—factories—are facing challenges such as rising costs and shrinking profits, leading them to either opt for lower-cost alternatives or cancel their purchase plans altogether.
Jun Liu, a dealer at Junyu Motors, also pointed out that most buyers in the light truck market are non-local residents. "Their purchasing power is inherently limited," he said. With rising operational costs, many factories have reduced their spending or shifted their focus to cheaper models, which explains why overall sales remained stable while high-end sales declined.
Another major issue is product homogeneity. Domestic light truck manufacturers have improved their technology, and medium and low-end models have seen significant quality improvements. These vehicles offer better cost-efficiency in terms of operation and maintenance, making them more attractive to factory buyers who prioritize investment returns.
"The homogenization of the market has made price the main deciding factor for consumers. Whoever offers the lowest price, people will go for it," said one industry insider.
Additionally, diesel prices have also played a role in influencing buying decisions. Some potential buyers have delayed or canceled their purchases due to the increased fuel costs.
Dongguan has strict regulations on truck purchases, allowing only local residents to buy one truck per household. This policy, known as the "card restriction," has had a measurable impact on sales. According to a manager at Jiangling, the policy cut annual sales by about 200 to 300 units. Similarly, Junyu Motors reported that the regulation allows Jianghuai to sell at least 20 units monthly.
Industry analysts also believe that the rise in diesel prices has affected some buyers’ decision-making processes.
Recent reports indicate that high-end light truck sales have been hit hard. For example, JMC's monthly sales averaged around 90 units in the first eight months of the year, a sharp drop compared to over 200 units sold in the same period last year.
At Dongguan Jiangling, the sales manager revealed that the company sold over 1,500 units last year, far exceeding initial targets. This year, the goal was set at 1,600 units, but by the end of the month, only 700 to 800 units had been sold. “There’s definitely a problem,†the manager admitted with a sigh.
Meanwhile, Yangcheng Auto saw a slight increase in sales, with a 0.4% year-on-year growth in the first eight months of the year.
In contrast, low-end light trucks have gained popularity. Brands like Jianghuai, Dongfeng, Ao Ling, and Liberation, with models priced between 30,000 and 60,000 yuan, have seen strong performance. For instance, JAC light trucks have sold over 130 units per month on average, with several models in the 30,000–50,000 yuan range dominating the market.
According to industry sources, JAC, Dongfeng, and Ao Ling have emerged as the leading brands in the low-end segment this year.
The implementation of National III emission standards is another factor affecting the market. The Dongguan Environmental Protection Agency confirmed that the city will adopt State III emission standards, following Guangzhou and Shenzhen. This has raised concerns among truck dealers.
A local dealer noted that most trucks currently on the market do not meet the new standards, except for certain models from Qingling and JAC. He expressed uncertainty about future developments.
Although domestic manufacturers can technically produce compliant trucks, the increased costs may exceed market demand. For example, a 50,000-yuan light truck could cost at least 60,000 yuan after meeting the new emissions requirements.
Dealers remain cautious about the upcoming changes. While no official documents have been issued, many have started clearing inventory in preparation for the new regulations.
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