Sinotruk sales surge ahead of new environmental rules
29 August 2008
Truck-maker Sinotruk posted first half profits of US$112.5 million, up 40% year-on-year, Bloomberg reported. Heavy-truck sales rose 57% – more than twice the pace of the vehicle market as a whole – as drivers rushed to buy in before the introduction of the Euro III standard in July. Under the new standard, automakers have to use more expensive engines, prompting Sinotruk to raise its prices by about 10,000 on average. Total domestic sales of heavy trucks came to 59,196 units, with a further 8,498 vehicles shipped overseas, up 47% year-on-year. Sinotruk's domestic business has also been boosted by rising demand from builders and miners. This has allowed the firm to increase prices at least twice so far this year in order to offset rising input costs.