The China Industrial Truck Association (CITA) says China's forklift sales reached 75,000 units in 2005.

Forklifts in service reached 340,000 units.

Forklift sales are expected to exceed 120,000 units by 2010 and forklifts are to become one of the biggest selling products in the construction machinery industry, Asia Pulse reported.

CITA secretary general Su Enyi said China had 14 regions where forklift sales exceeded 1,000 units a year. Guangzhou city, in Guangdong province, southern China, was the most important forklift market.

Combined forklift sales for Anhui Forklift Truck Group (Heli) and Hangzhou Forklift Truck Group exceeded 40,000 units in 2005 and accounted for about 60 per cent of the total market.

However, CITA said the gap between outdated production equipment and the expanding production capacity was growing larger.
"There are also problems in the sector such as a lack of information exchange platforms and cut-throat price competition affecting the quality of products," Asia Pulse reported.