Sustainable Development of Commercial Vehicle Industry in China under New Environment


In 2011, China's commercial vehicles produced and sold 3.936 million vehicles and 4.0327 million vehicles, which represented a year-on-year decrease of 9.94% and 6.31%, showing a sharp decline from 2010. In the first three quarters of 2012, domestic commercial vehicles produced and sold 2.7741 million units and 2.8227 million units, which represented a year-on-year decrease of 7.13% and 8.22%. In the past two years, the market environment of the commercial vehicle industry in China has undergone major changes. These changes have created major challenges for the development of the commercial vehicle industry. The insiders have to think about the sustainable development of the commercial vehicle industry in China. .


Problems in the Commercial Vehicle Industry under the New Environment


The problems faced by China's commercial vehicle industry mainly include: extensive development methods are difficult to sustain; prices alone can no longer win the market; market homogeneity is serious; overseas marketing is derailed. Huang Gang, general manager of Dongfeng Commercial Vehicles pointed out.


Huang Gang said that in the past ten years, especially in the five years from 2005 to 2009, most of the commercial automobile manufacturers in China have been bathed in the spring of great development. The market situation of high demand and demand exceeds supply, making companies busy with production, busy with sales, and relaxing lean management. Extensive operations have been popular in this period. As the market flourishes, enough productive capacity is expanding; all the unnecessary equipment needed is being purchased; the money that should have been spent is investing. As a result, fixed costs have increased, operating costs have risen, and cash flow reserves have decreased. In the ten years of gold in the Chinese commercial vehicle industry, the cake in the market was big enough to eat too much. Cake, such a delicious thing can not be wasted. You (there are already commercial vehicle companies) can't finish eating. I (new entrant) also have a share. As a result, five to six medium and heavy truck companies emerged in the first two years of juggle.


In the past two years, the market has become saturated. In particular, the medium- and heavy-duty card market has even experienced a phased recession. The new entrants who have been overwhelmed have died down; new capacity has been idle; funds have been stretched; and extensive production methods are also in urgent need of transformation.


Huang Gang believes that the era of price as the main means of competition will never return. In the past, the low added value of transportation products determined the market popularity of low-priced products. At present, the technical regulations of China's commercial vehicle industry are continuously upgraded; the market structure is undergoing adjustment; the price of raw materials has increased by 60% in the past 6 years; the cost of labor in China is also increasing; the RMB is still rising, facing the current market competition , I Dongfeng commercial vehicle (market sales first), you Jiefang liberation (market sales second), you heavy truck (market sales third), Futian, Shaanxi Auto, etc., these powerful corporate groups and how much the price Can you drop? How long can price cuts last? This is not the past, not that I do not understand, is that the market changes quickly. In the past, the window of price as the main means of competition has been closed, and China’s commercial vehicle industry will open new doors of competition.


On the issue of homogenization, Huang Gang stated that during the period of explosive growth of the market, technological progress and innovation have been neglected, and the immutable products produced by the stagnant technologies have also been sold. If you do not consider those small differences, in terms of core technology, the transportation vehicles on the Chinese market are like a family, just different names (brands).


Under the current new market environment, the homogeneity of a family in the world will seriously hinder the development of enterprises. What the market needs is a differentiated product. What is needed is a product with excellent quality, reliable quality and brand power. What is needed is a new product with advanced technology and constant innovation that can meet the needs of the new market.


When talking about the following issue, the reporter could feel Huang Gang's unease. Huang Gang said that since overseas markets have picked up somewhat this year, the demand for medium and heavy trucks in China is currently declining. If Chinese enterprises in overseas markets cannot change the impression of low quality, low price, vicious competition, etc., China’s commercial vehicle companies will find it difficult to find a road to overseas.


Although past and present, sales of commercial vehicle companies in China are still dominated by the domestic market. However, international sales are not only a icing on the cake, but also a sign of technological progress. It is also an inevitable choice for companies to become bigger and stronger. Sadly, on the road to internationalization of the Chinese commercial vehicle industry, the trend of quick success and instant gains is prevalent, and there are many generations of young people. Therefore, Chinese products have been dubbed the name of low quality and low price. Not only has the market in some areas been resented, but even suffered To some countries and regions government boycott. Huang Gang exemplifies Russia. After the outbreak of the financial crisis, the Russian government formulated a series of restrictions on Chinese commercial vehicle companies, resulting in the total loss of Chinese companies. Until now, it is very difficult to think about entering the vast market of Russia.


For the sustainable development of the commercial vehicle industry


In the new environment, what should we do if the commercial vehicle industry in China wants to achieve sustainable development?


Huang Gang pointed out that first, Chinese companies must adhere to technological innovation, and only technological innovation can cultivate core competitiveness. Only through unique technologies can companies create differentiated values ​​for customers, can they meet the ever-escalating regulatory requirements, and can enterprises make Cost competitiveness.


Second, quality and brand, quality and brand are crucial. Chinese companies should adopt quality enhancements to enhance the brand's value. Product competitiveness will eventually settle into the brand, sublimate the brand through the improvement of quality and technology, and in turn participate in the market competition through the creation of the brand.


Third, lean management. In the past, China's commercial vehicle companies were spoiled by the market, and extensive management became popular. In the current market environment, taking lean management can improve the company's ability to resist risks.


Fourth, to serve the transportation industry (reporter remembers Shaanxi Automobile has a concept: from a manufacturing-oriented enterprise to a service-oriented enterprise). In the future, China’s commercial vehicle companies will not only provide good products, but also provide related services for the transportation industry, including auto financing, post-market and so on.


Fifth, globalization. In 2011, the production and sales volume in China's heavy truck market was close to 50% of the global market. After the global market is expected to improve, the Chinese market will have a capacity of about 30%. At present, the degree of globalization of China's commercial vehicle companies is not high. Enterprises may adopt global technology, but they have not yet achieved market globalization. When Chinese companies achieve market globalization, the customers and market environment of the international market will bring challenges, while also promoting the promotion of competitiveness and will also feed back the local market. Walking on both international and domestic routes will also reduce and balance the business risks of the company.



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