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In recent years, the investment in the heavy truck industry within and outside the industry has always been very high. Companies such as Chang'an Chongqi, Shanxi Dayun, Jirui joint truck, and Nanjing Xugong have all entered the heavy truck market. Optimistic expectations of the future market outlook make them unable to hold back the impulse to participate in the competition with their heavy truck capacity.
In early 2011, the Ministry of Industry and Information Technology formally implemented the "Regulations for the Management of Commercial Vehicle Manufacturing Enterprises and Product Access," raising the threshold for commercial vehicle companies and products to enter the market, and they have a clear-cut attitude toward investing in the commercial vehicle market. People in the industry believe that the publication of this document fully reflects the concerns of the government authorities on the overcapacity of commercial vehicles, and it also sounds the alarm for the capital that the market has swarmed into. The document requires that the total investment of newly-built commercial vehicle manufacturing enterprises not be less than 2 billion yuan. The investment projects shall include the engine factories for the entire vehicle and the conditions of an R&D center with an investment of no less than 500 million yuan, and whether it can curb the enthusiasm for capital entry. , we need to wait and see.
Not only is the ready-to-enter capital ready to go, but after experiencing high growth in production and sales in 2010, mainstream heavy truck companies are also optimistic about the market outlook in 2011. Expanding capacity, competing for shares, and expanding the market have become the goal of most heavy truck companies this year. Except that a few companies think that sales growth in 2011 will be the same as last year, more companies see 2011 as a new starting point for scale expansion, and many companies are ambitious to propose new capacity expansion targets, which is worrying. 
First, even if there is no policy intervention, in the capital and technology-intensive industries such as heavy trucks, the entry threshold for latecomers is getting higher and higher, and the intensity of competition is getting more intense. At present, the competition in the truck market is not only the product competition but also the competition of the entire industry chain. Even with the bumper crop of the heavy truck market in 2010, we can still see that many truck companies have had a hard time, especially after some market entrants. After several years of trials in the market, the annual sales volume is still less than 1,000 vehicles. How long can it be supported under such a production and sales scale?
Second, the macroeconomic stimulus effect will weaken. Whether the heavy truck market can continue to write 2010 brilliance has a lot to do with the domestic macroeconomic situation. At the beginning of 2011, many incentive policies of the automotive industry, such as car purchase tax reduction and automobile exit to the countryside, will all affect market demand to a certain extent. Under the combined effects of a sound monetary policy and a proactive fiscal policy in 2011, coupled with the uncertainties in the direction of macroeconomics, there are too many variables in the outlook for the heavy truck market.
Again, does the market growth prospect mean that more participants are needed? Needless to say, although the heavy-duty truck market has shown strong growth momentum in 2010, especially the demand for heavy-duty trucks has been fully released, we have also seen that competition in China's heavy-duty truck market has matured, especially in dump trucks and trucks. Such as market segments, the degree of industrial concentration has been relatively high. The sales volume of the top 5 heavy truck manufacturers in sales in 2010 accounted for more than 80% of the total sales of the heavy truck market. With such a high degree of industrial concentration, the entry of latecomers will not only gain a firm foothold but will also form a redundant construction to some extent. 
In the eyes of investors, the heavy truck market may be a lucrative "fat." In the past ten years, Futian, Hualing, and JAC have successfully entered this market. The development of companies that have just entered the industry in the past two or three years remains to be tested by the market. In this industry, where the requirements for technology, management, and service are getting higher and higher, the space for newcomers is not as large as it seems.