Dongfeng Chaochao hit the market on three sides

In 2011, 172,000 diesel engines were sold. The sales volume is expected to be around 170,000 units in 2010. This seemingly non-growth figure does not mean that the development of Dongfeng Chaochai Company (hereinafter referred to as Chaochai) is weak but represents a new The year will focus on product structure adjustment. At the 2010 annual business conference held by Chaochai, Zhao Hai, deputy general manager of Chaochai and general manager of the sales company, said.

In September 2009, in the face of a rapidly growing market demand, the company went all out to overcome its capacity bottleneck. It produced 21,704 diesel engines and sold 22,668 diesel engines, setting a new high for the company’s monthly sales. As of November 30, 2009, Chaochao has sold a total of 161,881 units of its total sales, achieving sales of 2.2 billion yuan. It is expected that the entire year will be able to sell 172,000 units of the whole machine, achieving sales of 2.4 billion yuan, which will once again create a new historical high for the company.

In the interview after the meeting, Zhao Haigang did not talk much about the results of 2009. Regarding the direction of development in 2010, Zhao Haigang, who is the head of Zhaochai’s marketing and R&D business, seems to be more interested.

Plan ahead for price war

"The biggest challenge facing the internal combustion engine industry in 2010 will come from price. Especially in the township market, the difference of 100 yuan may lose one user." In the eyes of Zhao Haigang, the market this year is so severe.

He believes that due to the support of relevant national policies and the rigid demand of the market, the current automobile industry is showing a booming trend of rapid development. However, there are several problems behind the prosperity that have to be considered. One is that the market share of small-displacement, low-end products is gradually expanding; the other is that if all auto companies start full-scale, production capacity will inevitably be surplus.

Faced with such a status quo, Zhao Haigang believes that the market demand structure of the internal combustion engine industry will change, and Daw Chai must make adjustments in product structure. Among these, the most important one is the development of small-displacement machines.

The “price war” ushered in by the internal combustion engine industry is not a vicious competition, but it is a necessary path for a company to achieve better survival. It is an inevitable situation encountered when the financial crisis and people’s consumption levels have been raised.

Zhao Haikou said that what they have to do is to help users reduce costs. There are two main methods, one is to improve product reliability, and to improve the performance of the product from the source of R&D. At present, all diesel products of Chaochao are able to meet the national 3 emissions, and engines that meet the national 4 emission standards have been developed. On the other hand, starting from the service, this is exactly the significance of the annual business conference, which fully enhances the service capabilities of each office and service station so as to better serve customers.

Actively develop the market Blue Ocean

The financial crisis hit, and the market has a great impact. For Chaochai, the market still has great potential to be tapped. To this end, Chaochai has made a series of adjustments in recent years. While doing a good job in light traditional trucks, passenger cars, and other traditional markets, Chaochao has begun to move toward blue ocean markets such as SUVs, pickups, construction vehicles, engineering machinery, and agricultural equipment.

In order to cope with the urbanization construction, Zhachai made further refinement of its products and extended its focus to small displacements. Since last year, Chaochao has launched four basic new products and developed 185 models of new prototypes. The product basically covers the demand of 40-125kW power section. In particular, the continuous launch of products such as the E3 series, QD80 series, 4A series, and engineering vehicle engines have resulted in significant changes in product structure and broader product coverage.

According to expert judgment, the passenger vehicle market will increase by 15% in 2010, and the commercial vehicle sector will increase by 9%. In these two areas, the proportion of small-displacement products will increase significantly. Zhao Haigang predicts that pickup trucks will get faster development. With the rapid completion of the high-speed rail, the market structure in the passenger car sector is also quietly changing. Buses of 7 to 8 meters are gradually becoming popular, and the demand for buses of 10 to 12 meters is obviously inferior to that of buses. Previously.

In recent years, Chaochai has gradually begun to pay attention to the field of construction vehicles. Chaochai Sales Company's product division is subdivided into passenger cars, trucks, and engineering vehicle divisions, among which the construction truck division faces various construction machinery and related transportation products for highway use and non-road use. In 2009, the sales volume of special products for Chaochai Diesel Engine Co., Ltd. increased significantly. As of October 2009, 5142 units had been completed, and 7,407 units were completed in the year, an increase of 155.8% year-on-year. It is understood that the current sales of engineering diesel vehicles in Chaochai are mainly concentrated in dump trucks and forklifts.

At present, Chaochai has a certain market competitiveness among 5 to 10 tons of forklifts. The main leaders of Hangcha, Longgong, Liugong and other companies responsible for the forklift business were invited to attend this business meeting of Dichai. Zhao Haigang stated that Chaochai has the willingness to support more engineering machinery products. However, it must be pointed out that different types of construction machinery products have great differences in the demand for power systems. To satisfy one product is not able to satisfy other products. In this respect, Chaochao needs to increase research and development efforts.

Customer-oriented branding

Zhao Haigang said that in the past, companies were boring to make products and they thought they would take out high-performance products; but now, companies have gradually realized the importance of establishing a brand. At the entrance of Hangzhou First World International Hotel, a second-generation "Warrior" military vehicle produced by Beijing Automobile Co., Ltd. was painted. This car is equipped with QD32 diesel engines produced by Chaochai. The jeep had participated in the parade of the 60th anniversary of the founding of New China. For Chaochai, this is a special honor.

Branding must be closely related to users. At present, the composition of China's car buyers has gradually turned to younger, Zhao Haigang said that after 80 has already had a certain degree of car strength, the upcoming 90 will soon enter the car army. He said that the concept of car purchase for these people is completely different from that of previous people, and personalization is their most unique requirement.

Open up overseas users. The export of the Chaochai Engine is basically in cooperation with the main engine plant and is carried out with the vehicle export. From January to November 2009, China’s auto exports totaled 270,000 vehicles, a year-on-year drop of 55%. In the same period, Chaochao Diesel Engines exported 6,000 diesel engines, a decrease of 47% from 2008, slightly better than the decline in the auto industry.

At present, Chaochao’s market focuses on Southeast Asia, the Commonwealth of Independent States, and the Middle East. Some time ago, some countries in the CIS region drastically increased their emission standards, which had a certain impact on the sales of enterprises. However, in Kazakhstan, the DPRK diesel engine maintained its position as the second largest exporter.

Since 2007, Chaochao has successively dispatched service representatives or service representatives from Vietnam, Colombia, and Venezuela to develop and maintain overseas markets, and established service stations in Colombia and Venezuela. The service systems in Kazakhstan, Algeria, and Vietnam have begun to take shape. .

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