Exporters uncertain over impact of Chinese truck manufacturers

Commercial Motor
July 12, 2016

UK used truck exporters have told CM it is unclear what impact the arrival of trucks from Chinese manufacturers into Africa is having on their industry.

Ross Dalton, general manager at CVA Auctions, said export markets for auction houses have been difficult for some time, but legislative changes in various countries and the economic situation have contributed to a reduction in the number of trucks exported to Africa .

“I think the rise of Chinese manufacturers is something to watch out for in years to come as the products get more recognised. But today, I don’t think it’s had too much of an effect that I have noticed,” he added.

China has pumped billions of pounds into infrastructure in Africa, and some industry observers suggest hauliers working on the many building projects there get preferable loads and quicker loading times when driving Chinese trucks. In 2010, Chinese truck manufacturers stepped up their presence in Africa, with Sinotruk entering the Kenyan market. Shortly afterwards, Foton switched from importing pre-built vehicles to setting up an assembly plant in Nairobi.

Charlie Wright, MD at Protruck Auctions, said: “Chinese manufacturers are making basic trucks to suit the African market. There is also a feeling that operators there receive favourable rates from Chinese banks to buy products from that country.”

Paul Young, regional asset manager at Paccar Financial Europe, said there are still

strong pockets of interest in Africa for UK used Daf trucks, particularly from Tanzania and Mozambique.

“New Chinese products are cheap, which means increased competition between them and exported European used trucks,” he said.

This article was published in the 7 July issue of Commercial Motor. Why not subscribe to get 12 issues for just £12?



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