Heavy-Duty Truck Stocks Extend Losses as Soaring Oil Prices Dent Sector Demand

Stock News
2 hours ago

Heavy-duty truck concept stocks continued their decline. At the time of writing, SINOTRUK (03808) fell 5.23% to HK$40.62, while WEICHAI POWER (02338) dropped 4.34% to HK$31.32. The downturn is linked to recent geopolitical tensions in the Middle East, which have kept international oil prices volatile at high levels. Data indicates that for the express delivery industry, which relies heavily on road transport, fuel costs account for 30% to 40% of line-haul transportation expenses. A heavy-duty truck traveling 70,000 kilometers annually faces a fuel cost increase of tens of thousands of yuan in the first quarter alone due to rising oil prices. CMB International Securities noted that surging oil prices are having a significant qualitative and quantitative impact on the heavy-duty truck sector. In an environment of macroeconomic inflation and high oil prices, overall vehicle purchase demand for heavy-duty trucks is under substantial downward pressure. In terms of energy structure, high oil prices are accelerating the industry's transition towards new energy and natural gas-powered trucks. Demand for diesel trucks is being squeezed, while sales of natural gas trucks are rebounding rapidly due to the cost advantage from the price spread between oil and gas. Meanwhile, the total cost of ownership advantage of pure electric heavy-duty trucks over their lifecycle is becoming more pronounced, pushing the supply chain to accelerate electrification.

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