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The trend of the sales structure of the Weichai engine turns good. The sales volume chain increased 2.4% and the sales income 11% in the third quarter in 2009, which show the good turning. The sales volume of the heavy truck engines and common rail engines rose. Also the unit price and gross profit rate of these products mentioned above are better than other engine products.
The production and the sales reach the peak while the price of the major primary material remains low with increasing rate of the gross profit quarter by quarter.
It is estimated that the possibility of the obvious change on the sales of Weichai semi-tractor truck is not big in 2010. First, there will not appear the big decline of the demand of the domestic logistic transportation. Secondly, there will be 500 thousand vehicles in the update amount based on the calculation of the update cycle of the 5 years and the current capability.
The potential competitors will be hard to exert the heavy pressure to the Weichai in the short term time. The manufacturing and the matching of the heavy truck engines requires high level technology, furthermore, Weichai owns the scale and brand advantages so that it is difficult to change its status in the industry. In addition, Weichai will set up the advantage position in the industry of general power assembly through the radiation of the small displacement in the future.