China Automobile Dealers Association: Pickup Truck Market Analysis in June 2022

According to data from the Pickup Truck Market Information Joint Conference of the Automobile Market Research Branch of the China Automobile Dealers Association (CPCA), the pickup truck market sold 52,000 vehicles in June 2022 , a year-on -year increase of 19% from June 2021 and a month-on-month increase of 24% from May this year . As the situation of pickup truck production obstruction under the epidemic has improved, policies have encouraged consumption, promoting the recovery of pickup truck production and sales in June 22 , which also reflects the promotion of the industry after the improvement of the epidemic in Shanghai. The sales ranking of pickup truck manufacturers in June was relatively stable, Great Wall Motors maintained a strong lead, and JAC Motors pickup trucks showed a strong trend.

The pickup truck trend this year is relatively abnormal, mainly affected by supply. The overall pickup truck trend this year is relatively volatile, reaching 259,000 units from January to June , a decrease of 6% from January to June 2021 , and the production and sales performance is weak.

Under the general tone of the national automobile consumption promotion policy, the three guarantees policy and road right policy of pickup truck models strongly support pickup truck consumption, and major automakers have also launched passenger pickup truck products. At the same time, driven by the increasingly active pickup truck culture, pickup truck market consumption continues to grow at a high rate. Recently, the General Office of the State Council issued an opinion on further releasing consumption potential and promoting sustained recovery of consumption. The fourth point, Article 13 of the "Opinion" proposed: " Implement refined management of pickup trucks entering the city, and study further relaxation of restrictions on pickup trucks entering the city. Since the pilot lifting of the pickup truck ban in 2016 , the country's attention to the lifting of the pickup truck ban has risen from the ministry level to the State Council level for the first time. The pickup truck ban has once again ushered in strong policy support, and a full lifting of the pickup truck ban is expected.

The national pickup truck market has returned to the north, with strong markets in the northwest and northeast, and relatively weak market demand in the southwest, south China, and central and southern China. The engineering demand was sluggish due to the previous real estate adjustment, but the recent increase in local government investment has promoted the pickup truck market to be more closely related to finance, and the pickup truck market in small and medium-sized cities and county and township markets has performed well.

The pickup truck market will face great growth pressure in the coming period, especially as the real estate downturn has led to weak demand for pickup trucks, but pickup trucks still perform better than the overall commercial vehicle market. As the pickup truck consumption culture gradually rises, the efforts of various manufacturers to increase pickup truck sales will also be effective. The effect of pickup trucks benefiting from the expansion of the passenger car market will also become more apparent.

1. Overall analysis of the pickup truck market

1. Comparison of national pickup truck market trends in June

In June 2022 , the pickup truck market sold 52,000 units, up 19% year-on-year from June 2021 and 24% month-on-month from May this year . Due to the improvement of the situation of pickup truck production obstruction under the previous epidemic, the production and sales performance of pickup trucks in June 2022 has rebounded. This is also a common improvement feature of the industry.

Pickup truck sales increased by 10% in 2018. In 2019 , the cumulative sales of pickup trucks reached 440,000 units, a year-on-year decrease of 3% . In 2020 , the sales of 480,000 units increased by 9% year- on-year, which was a strong performance.

The growth of light trucks in 2021 is gradually coming to an end due to the stimulus of overload control. In 2021 , the sales volume of pickup trucks reached 550,000 , a year-on-year increase of 14% , which is a strong performance compared with traditional light trucks.

The overall pickup truck trend in January-June this year was relatively large, reaching 259,000 units, a decrease of 6% from January-June 2021. The production and sales performance was still very good.

2. Monthly trends of pickup truck market over the years

The pickup truck wholesale market trend fluctuated greatly in 2022 , but remained relatively strong in June . The months of 2022 were relatively stable compared to previous years, with only April showing an abnormal trend, which also slightly improved the decline in future months.

Pickup trucks are means of production vehicles. Generally speaking, there are relatively few pickup trucks purchased before the Spring Festival, and pickup truck sales enter the peak season after the Spring Festival. This is also the demand growth point for engineering projects and unit purchases.

The sales volume of passenger cars represents the quality of life and pursuit of Chinese consumers, but the sales volume of commercial vehicles represents the development status of China's small enterprises and small private owners. Only when the demand for commercial vehicles increases and basic people's livelihood issues are resolved, can the passenger car market have the possibility of recovery.

The pickup truck market also directly reflects the development of small private owners. In 2020 , the pickup truck market represented by Great Wall Motors has become the vanguard of the recovery of the automobile market after the epidemic has eased. However, with the downturn in the real estate market and the interference of the epidemic, the operating pressure of the tertiary industry is relatively high, and the pickup truck market is also difficult.

2. Analysis of pickup truck market environment

1. The State Council deploys measures to promote consumption

On April 25, 2022 , the General Office of the State Council issued an opinion on further releasing consumption potential and promoting sustained recovery of consumption. In Article 13 of the fourth point of the "Opinion" , it is proposed: " Implement refined management of pickup trucks entering cities, and study further relaxation of restrictions on pickup trucks entering cities. Since the pilot lifting of the ban on pickup trucks in 2016 , the country's attention to liberalizing the entry of pickup trucks into cities has risen from the ministry level to the State Council level for the first time. The lifting of the ban on pickup trucks has once again ushered in strong policy support, and a full lifting of the ban on pickup trucks is expected.

2. Treating vehicles the same as passenger vehicles Pickup trucks included in the new three guarantees policy for automobiles

The State Administration for Market Regulation has announced the new "Regulations on the Liability for Repair, Replacement and Return of Household Automobile Products" ( Announced by Order No. 43 of the State Administration for Market Regulation in 2022 ) (hereinafter referred to as the "Automobile Three Guarantees Regulations"). The regulations will be implemented in 2022. It is worth noting that the new three guarantees regulations have not only changed in terms of details, but also included pickup trucks in the three guarantees regulations. In other words, at the level of automobile management, the role of pickup trucks has been roughly equal to that of passenger cars, which is undoubtedly a favorable policy for the future positioning of pickup trucks.

3. New C6 qualification for pickup trailers

At the end of January 2022 , the Ministry of Public Security announced the "Regulations on the Application and Use of Motor Vehicle Driving Licenses" (Ministry of Public Security Order No. 162 ), which clearly defines the definition of light tractor trailers and the required C6 driving qualifications, establishing a legal basis for the emerging phenomenon of light vehicle trailers. The regulations will take effect on June 1, 2022. It will legalize the driving method of pickup trucks + trailers and give trailer drivers more control experience.

4. General technical requirements for multi-purpose trucks come into effect

The national standard "General Technical Conditions for Multi-Purpose Trucks" will be officially implemented on June 1, 2022 .

This standard applies to multi-purpose trucks with two rows of seats, and single-row pickup trucks are not included in the scope of multi-purpose trucks. The standard clearly defines pickup trucks and sets requirements for size, gradeability, fuel economy, cargo box, tires, etc. It proposes detailed clauses such as " the length of the cargo box top should not exceed 35% of the vehicle length and not exceed 1850 mm" , " the seat spacing should not be less than 650 mm" , " the cargo box should only have the rear tailgate in an openable and closable state " , and " at least one rear seat should be equipped with an ISOFIX child restraint system fixing device " to ensure the dual-use attributes of pickup trucks for passengers and cargo and driving safety.

At the same time, the standard puts forward higher requirements on the collision performance, seat belts, child restraint systems and fixing points, seats and headrests, braking, vision, tires, etc. of pickup trucks, and makes it clear that the technical requirements in these aspects should be consistent with the relevant indicators of passenger cars; and because pickup trucks have higher demands on power, in terms of energy saving and environmental protection, the technical requirements for pollutant emission limits, fuel economy, in-vehicle air quality and electromagnetic compatibility only need to be consistent with existing standards.

5. Hebei : Cancel restrictions on the relocation of used cars / lift restrictions on pickup trucks

Hebei Province has issued a notice on issues of concern to many people, such as restrictions on the relocation of used cars and exemption of purchase tax. The following contents are related to the automobile industry. The specific summary is as follows:

Steadily increase major consumption such as automobiles and home appliances. Completely cancel restrictions on the relocation of small non-operating used cars that meet the National V emission standards , and improve the registration, filing and vehicle transaction registration management regulations for used car market entities. Remove restrictions on pickup trucks throughout the province. Arrange provincial special funds to support cities in carrying out automobile consumption promotion activities such as household new car promotions, car sales in rural areas, and promotion of new energy vehicles.

6. Henan : Studying to further relax restrictions on pickup trucks entering the main urban area of ​​Zhengzhou

On June 8 , the Henan Provincial People's Government issued the "Notice on the Implementation Plan for Henan Province to Implement a Package of Policies and Measures to Stabilize the Economy", involving 155 specific tasks in ten aspects. The notice proposed in the " stabilizing the increase in major consumption such as automobiles and home appliances " that " fine-grained management of pickup trucks entering the city will be implemented, and research will be conducted to further relax restrictions on pickup trucks entering the main urban area of ​​Zhengzhou City " . The responsible units and progress requirements were also clarified, and must be completed before the end of September 2022 .

7. Sichuan: Studying further relaxation of restrictions on pickup trucks entering the city

The Sichuan Provincial People's Government issued the "Notice on Printing and Distributing Several Policy Measures to Solidly Stabilize Economic Growth", proposing to implement the policy of reducing vehicle purchase tax for passenger cars below a certain displacement, cancel the restrictions on the relocation of small non-operating second-hand cars that meet the National V emission standards across the province, and study further relaxation of restrictions on pickup trucks entering the city. Optimize the operation mode of new energy vehicle charging piles (stations), gradually achieve full coverage of charging facilities in all communities and commercial parking lots, and strive to achieve a coverage rate of 80% for charging piles (stations) in highway service areas, passenger transport hubs and other areas within the year .

8. Gansu Province proposed for the first time to relax restrictions on pickup trucks entering the city

The General Office of the Gansu Provincial Government issued the "Implementation Plan for Gansu Province to Implement a Package of Policies and Measures to Stabilize the Economy". In the joint efforts to promote consumption and stabilize foreign trade, it is proposed to relax restrictions on pickup trucks entering the city and optimize restrictions on private cars in order to stabilize the increase in major consumption such as automobiles and home appliances. This is also the first time that Gansu Province has proposed a policy to relax restrictions on pickup trucks entering the city.

9. Hohhot relaxes restrictions on pickup trucks entering the city

On June 15 , the Traffic Police Detachment of Hohhot City issued the "Notice on Adjusting Traffic Management Measures for Multi-Purpose Trucks (commonly known as Pickup Trucks)", relaxing restrictions on pickup trucks entering the city. In addition to the 24-hour ban on urban expressways and elevated roads , multi -purpose trucks (commonly known as pickup trucks) are allowed to travel on other urban roads to avoid morning and evening rush hours.

10. Hubei Province : Wuhan adopts refined management of pickup trucks, and other areas do not restrict traffic

Hubei Province issued the "Work List for Implementing the Central Government's Package of Policies and Measures to Stabilize the Economy". Article 18 of the list clearly states that except for Wuhan, there are no restrictions on pickup trucks in other cities and prefectures. Wuhan City has adopted refined management of pickup truck traffic to meet the production and living needs of the people. The Provincial Public Security Department will take the lead in implementation.

In June last year , the General Office of the People's Government of Hubei Province issued a notice on several measures to further promote commercial consumption in response to the impact of the epidemic, which mentioned the removal of restrictions on pickup trucks entering the city. After the issuance of the "Work List for Implementing the Central Government's Package of Policies and Measures to Stabilize the Economy", we believe that the implementation of the lifting of the ban on pickup trucks will be accelerated.

11. Sichuan Yibin lifts the ban on pickup trucks, completely removes traffic restrictions and allows vehicle registration types to be changed

On June 21, 2022 , the Traffic Police Detachment of the Public Security Bureau of Yibin City, Sichuan Province issued a notice to relax the traffic restrictions on light multi-purpose trucks (pickup trucks) in urban areas.

12. Chongqing : Cancel restrictions on Chongqing pickup trucks entering the city

The Chongqing Municipal Public Security Bureau announced 10 measures to promote automobile consumption and smooth logistics and transportation : relax restrictions on pickup trucks, relax restrictions on new energy trucks, relax the application for passes for light trucks, facilitate the application for passes for cold chain logistics vehicles, facilitate the application for passes for new smart construction dump trucks, cancel the restriction on the relocation of used cars, relax the application entities and business scope of vehicle and driver management social service stations, optimize vehicle and driver management services, facilitate social assistance for road traffic accidents, and ensure the production, operation and transportation of enterprises.

3. Regional Characteristics of Pickup Truck Sales

1. Regional changes in the pickup truck market

The pickup truck market is mainly located in the northwest and southwest, and the demand for pickup trucks in the western region is relatively large.

At present, the demand for pickup trucks in the southwest and northwest regions accounts for more than 40% of the total demand , making them the two core markets.

The western market has remained relatively stable recently and has no obvious signs of contraction.

At present, the pickup truck markets in North China and the central Yellow River region are growing relatively fast, and the pickup truck market in Northeast China also has obvious start-up characteristics.

However, at present, the pickup truck market in East China and South China has not seen significant growth.

Pickup trucks still perform relatively well in the northern and central-western markets. This is also because the market economies in the northern and central-western markets are relatively inactive, and demand is mainly driven by investment and engineering construction.

The development of private passenger pickup trucks needs to be further strengthened, and the recent Great Wall passenger pickup trucks are worth looking forward to.

2. Pickup Truck Sales Regional Analysis

The main sales areas of the pickup truck market are still mainly small and medium-sized cities and county and township markets, especially the county and township markets, which are relatively strong. The performance of the small and medium -sized city markets in June 2022 was particularly outstanding. The county and township market remained stable, and the large city market did not show any obvious breakthrough characteristics.

The market of megacities is gradually shrinking after the outbreak, and among the restricted cities, the Tianjin market is particularly outstanding, accounting for about 20% of the restricted cities this year, and Guangzhou is also relatively strong. The Beijing market, which was relatively strong in the early stage, is now in a weak state.

4. Competition Analysis of China’s Pickup Truck Market

1. Analysis of pickup truck manufacturers’ performance

In 2022 , the main manufacturers in the pickup truck market performed well. Great Wall Motors Pickup Trucks maintained its absolute dominant position steadily, Jiangling Motors maintained its dominant position, and JAC Motors maintained strong growth.

In 2022 , SAIC-GM-Wuling's new products gradually developed steadily and did not significantly change the pickup truck landscape. Changan Automobile, SAIC Maxus and others performed well.

2. Annual market share trends of pickup truck manufacturers

In June 2022 , the pickup truck market still maintained the trend of 1 super strong, but began to gradually show a trend of differentiation. Great Wall Motors' pickup truck sales are outstanding. In recent years, Great Wall pickup truck sales share has continued to increase, maintaining 37% of the total pickup trucks in 2019 and 47% of the total pickup trucks in 2020. The sales share in 2021 reached 43% . The sales share in June 2022 reached 41 % .

From January to June this year , Great Wall Pickup had the leading market share, while Jiangling Motors, JAC Motors, Jiangxi Isuzu, Zhengzhou Nissan and others maintained a strong position. With the rapid rise of SAIC Maxus, JAC Motors and SAIC-GM-Wuling Pickup, the leading companies have squeezed the sales of the trailing companies.

Manufacturers with a pickup truck market share of more than 10% currently include Jiangling Motors and JAC Motors. Jiangxi Isuzu and Zhengzhou Nissan are also very strong. Both of these are relatively strong traditional manufacturers in history.

3. Monthly trends of pickup truck manufacturers

Some pickup truck companies have performed relatively well recently. After strong growth in the first quarter, Great Wall Pickup has performed well recently and has become a manufacturer that has significantly strengthened. In June , the pickup truck performance of Great Wall Motors and Jiangling Motors was relatively strong, and the pickup truck performance of SAIC Maxus and Changan Automobile was relatively strong.

In 2022 , the pickup truck manufacturers of traditional large groups are all very strong, especially SAIC Maxus, which has outstanding export performance. Great Wall Motors' pickup trucks have performed well both at home and abroad, and the vitality of new product launches is strong. Jiangling Motors' pickup trucks have recovered quickly. Relatively speaking, the pickup trucks of SAIC Maxus and Changan Automobile, which are new forces, have performed well.

4. Monthly trends of pickup truck models

Starting from 2020 , with the upgrade of National VI, the speed of product updates and iterations has accelerated, and pickup trucks have entered a period of market adjustment. According to the pickup truck market tracking of the China Passenger Car Association, Great Wall Motors pickup trucks occupy an absolute dominant position in the pickup truck trend. In the early stage, the Fengjun 7 pickup truck performed well, and recently the Great Wall Cannon has performed extremely well, far surpassing the Fengjun 7 to become the market leader.

In 2022 , the growth will mainly come from the second and third-tier markets. The growth will mainly come from the existing fields of engineering construction, municipal power, agriculture, forestry, animal husbandry and fishery, wholesale and retail, as well as new customers such as high-end, passenger, and off-road vehicles. The main models of traditional mainstream car companies have performed very well. Great Wall Motors' product innovation has achieved good results, and new products such as the King Kong Cannon have performed outstandingly.