This year, China semitrailers total sales are about 250,000, together with current semi-trailers, total semitrailers are about 1 million. Semitrailers become long-distance road transport main force.

The first 10 months of this year, State formally approved special truck manufacturer total 88 enterprises; most of them are semi-trailers enterprises. Till now, permitted semi-trailer manufacturers reached more than 700 enterprises, annual production capacity is expected to break 500,000, that are significantly greater than market demand.

Such”Rending prosperity," groups, is likely to face three major problems in 2008.

One problem:

Constraints increased, effective demand is insufficient

A few years ago; many coal mines and steel mills are in built, considerable number semi-trailer driver earned a lot in coal, steel and other bulk cargo delivery. In 2008, state will continue to effort to control transport overloading, methods and measures are also increasingly perfect. At the same time, charges according weight policy is gradually promoted thought country, which will control overloading also.
Secondly, fuel is a non-renewable resource, prices can only rise. If fuel tax was carried out, fuel after-tax price will be at least 20 percent to 30 percent higher than current oil prices. According to estimates, the fuel tax for vehicles operating expenses much higher than Yang Lufei, these costs will directly transfer to the transport cost.

Cargo delivery can’t earn so much as before, those who intended to purchase semitrailer will lose its enthusiasm.

Railway acts a important role in long-distance transport, and it shares cargo delivery market too. For example, after Qinghai-Tibet Railway was built, cargos that were delivered with auto are mainly shipped by railway carrier now.

Therefore, the semi-trailer market will change from blow-out purchase a few years ago to main exiting semitrailer changing. On one side new semitrailer enterprises are built, production capacity increased a lot; this will inevitably cause fierce conflict on semi-trailer market

Second problem:

Cost kept on increasing, but sale price can’t raise a lot.

semi-trailer industry consume large amount of steel, average use is six tons steel, 250,000 semi-trailer will consume 1.5 million tons of steel this year.

In recent years, steel prices rose, and semi-trailer axle, semitrailer steel ring and semitrailer tyres prices kept on rising too. Raw materials and semitrailer components prices raise cause cost rising directly.

After raw materials prices rising, semi-trailer prices can still rise a little, but the rate is not comparable with raw material rising. The reason is very simple, semi-trailer production capacity is much bigger than market needs; user can choose much cheaper supplier. This means that the semi-trailer industry entered meager profit, non-profit period, and the period not worrying about selling and earning a lot each selling ended already.

Third problem:
Retain qualified personnel and cost control contradictions intensify

Although semi-trailer industry is not high technology industry, but we still need a number of technical persons and workers to make qualified semitrailers. Because semitrailer production procedure is different from home appliances, clothing, food, light industry and other industry, most semi-trailer production process is not automated assembly line, mainly rely on manual labor. In recent years consumer goods prices raised a lot, employees living cost increased, to stabilize the workforce, enterprises must improve staff treatment, improve working and living conditions. In such circumstances, if semitrailer manufacturers do not improve employee’s wage, it’s hard to keep them, but wage increase will improve cost.

To raw material prices and wage costs rise, semi-trailer manufacturing enterprises can optimize product variety, improve labor efficiency and decrease steel usage to absorb some cost, but these measures effect are limit to semitrailer manufacturers.