Where is the spring of commercial vehicles?

In January 2009, China’s auto market unexpectedly emerged from a unique market in a “crisis”, just like a bull market in a bear market, which made it particularly attractive. In January of this year, it was also fortunate that they were "stained" by the media and experts, calling it Red January. However, the analysis report of the China Association of Automobile Manufacturers promptly reminded everyone that the overall macroeconomic environment in China has not been significantly improved, the overall trend of automobile production and sales is still sluggish, and the commercial vehicle market is particularly grim. According to statistics, the sales of commercial vehicles in January fell sharply by 20.4% and 36.5% respectively year-on-month and year-on-year.

Why does a unique car market exclude commercial vehicles? In March, how was the severe commercial vehicle market? The reporter recently interviewed several well-known commercial vehicle companies in China with various questions.

Most directly affected

Zhao Jingguang, deputy secretary of the Party Committee and spokesman of Foton Motor Co., Ltd., said in an interview with reporters on March 6th that the market conditions of commercial vehicles are directly related to its product attributes. Commercial vehicles are production materials and the relationship with the economy is the most direct. As long as there are changes in the macro economy, it will not be influenced by other vehicles, but it will be directly affected and will be reflected immediately. In the first half of 2008, the sales volume of commercial vehicles in China was very good. In the second half of the year, with the deepening of the global economic crisis and the impact of the macroeconomic situation, the sales of commercial vehicles in China have declined significantly, forming a very sharp contrast with the situation in the first half of the year.

At the beginning of the new year of 2009, the country continued to promote the automobile favorable policy. Under the spring breeze of the New Deal and the festive atmosphere of the New Year, the auto market staged a hot market in January. However, for commercial vehicles, the January and Spring Festival each year is its traditional off-season. Therefore, Zhao Jingguang said that the decline in commercial vehicles in the second half of last year still continued in January 2009. Therefore, the situation is extremely serious.

Liu Keqiang, general manager assistant of Shaanxi Automobile Group Sales Co., Ltd., which ranks among the top heavy truck sales in China, said that Shaanxi Automobile Group is mainly engaged in heavy truck production. Heavy trucks are mainly used for transportation of coal, steel, and cement, and are closely related to the national economy. Therefore, the economic changes will directly affect the sales of heavy trucks. In 2008, Shaanxi Automobile Heavy Duty Trucks sold 54,000 vehicles, but this figure was mainly brought in the first half of the year. In the second half of the year, affected by the financial turmoil, with the declining industrial growth, such as the decrease in coal demand, the decline in building materials sales caused by the weakening of the real estate market, and the drastic decline in port containers, all of which resulted in a significant decline in heavy truck sales. In the fourth quarter and the first quarter of this year, the severe situation of heavy trucks was not available for many years.

In an interview with a reporter, relevant leaders of Dongfeng Commercial Vehicle Company said that in the first half of 2008, the company's heavy trucks were close to 90,000 at the peak of sales, and only 35,000 in October. The third quarter of last year decreased by 20% compared with the same period of last year, and decreased by about 40% in the fourth quarter. The heavy truck industry has experienced a rapid decline. On the micro market, the demand for the road transport market is rapidly decelerating. In particular, the transportation demand for the coal and steel industry chains has been drastically reduced. Some of the export-oriented import and export logistics are also declining, and dealers are also facing high inventory and operational business needs. Financing support, but the financing environment is tightening, banks are reluctant to lend, users of mortgage vehicles may not be able to repay on time, and will cause a series of legal disputes such as repurchasing, and the entire distribution channel is also facing an unprecedented challenge. Therefore, the current competitive situation in the auto industry has become particularly fierce with overcapacity.

Calmly respond to the crisis

Due to the fierceness of the financial crisis last year, Chinese commercial vehicle companies and their suppliers have noticeably decreased their orders since last October. It is understood that companies such as Yuchai and Shangchai have ceased production intermittently. Some experts predict that 2009 will be severe for commercial vehicles and will be negative growth.

In this regard, experts believe that commercial vehicle companies can take advantage of the current "crisis" and inspire themselves to work hard, learn from the success of leading international commercial vehicle companies, improve their internal competitiveness, and stay on top of their strategic goals and sustainable development. Prepare for greater crisis and greater challenges.

In the face of severe situation, Dongfeng Commercial Vehicle Co., Ltd. has already had its own guiding ideology for coping with the crisis. It is to rationally understand business risks and ensure that the company's full-value-chain survival is the highest goal, and rationally, immediately and effectively adopt internal shrinking operation strategies and External active market development strategy. The specific measures are: internal tightening management, strengthening the "cash is the king" idea, actively explore the market, adhere to the survival and stable and harmonious development, based on strategic objectives and sustainable development.

Many people believe that the commercial vehicles get little from the government’s 4 trillion yuan investment. In this regard, apart from relying on itself and striving to improve its core competitiveness, commercial vehicle companies, Liu Keqiang, assistant to the general manager of Shaanxi Automobile Group, believe that the government should introduce relevant policies to subsidize commercial vehicles and make them highly fuel-efficient. Vehicles that do not meet the standards of environmental protection and have a longer vehicle age will withdraw from the market as soon as possible to promote the upgrading of commercial vehicles.

Good business will not lose spring

Although the January statistics made people worried about the serious situation of commercial vehicles, the reporter still heard some gratifying news during the interview.

Liu Keqiang told reporters that Shaanxi Auto's workers have been working overtime since the Spring Festival. In this regard, Liu Keqiang explained that after the Spring Festival, their orders began to increase, because with such demand, so there will be workers work overtime. For this gratifying scene, Liu Keqiang seems to be disapproving. He said that in the same period of last year, their situation was even more fierce. At that time, many order backlogs occurred. Some customers who could not wait even went to the factory to “grab” the car. According to Liu Keqiang, even when sales fell sharply last year, their heavy trucks ranked fourth in the country. The reporter thought that this may be due to their high-quality products and excellent services, indicating that there are still needs in the market. For such companies, I believe spring will not leave them.

When talking about the current sales situation of Futian, the company’s press spokesman Zhao Jingguang was full of confidence. He was pleased to say that the opening of the spring is the advent of the peak season, commercial vehicles have started to start, with 4 trillion yuan of funds stimulating domestic demand, the national support policy gradually The implementation of the resumption of consumer confidence in place, I believe the season will be extended. Fukuda's sales in February hit a record high, and orders in March will be better than in February. Zhao Jingguang said that Futian’s annual plan this year is higher than last year. In response to the problem of cars going to the countryside, he humorously said: “Futian itself is a rural youth and has never left the countryside.”

The reporter had the privilege of visiting Fukuda's Auman Heavy-Duty Truck Plant in Huairou. The company's emphasis on product technology, product quality requirements, and service commitments have always made people feel the pursuit of a high-standard company. And their source of confidence. Zhao Jingguang said that they will not engage in activities such as price cuts for sales, and they will only be able to do business. Sales are only one aspect, and more importantly, they are for sustainable development.

It seems that companies like Fukuda have no reason not to believe that they have already gone into the spring.

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