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For the heavy truck business leaders of Dongfeng Commercial Vehicles, China National Heavy Duty Truck and FAW Jiefang, the days of the first half of 2011 were not very good. The problem they needed to solve was how to reopen the market that was continuing to slump. At the same time, Jianghuai, Hongyan and other second and third-tier brands in the overall downturn in the heavy truck industry trend, sales have risen against the trend, heavy truck industry structure may begin to change.
Heavy truck market has good luck
In June 2011, the country produced 47,300 heavy-duty trucks (including non-complete vehicles and semi-trailer tractors), a year-on-year decrease of 46.51%, and sales of 63,900 vehicles, a decrease of 31.90% year-on-year, and heavy trucks became various Trucks have the largest decline in production and sales. The sales rankings of heavy trucks (including non-integrated vehicles and semi-trailer tractors) from January to June 2011 also showed that the top three companies, Dongfeng Commercial Vehicles, China National Heavy Duty Truck Group and FAW Jiefang, had sales of 11.31 million. The number of vehicles, 94,700 vehicles and 87,100 vehicles decreased by 1.63%, 19.20%, and 34.13% respectively year-on-year.
However, in the first half of the above-mentioned first-line brand performance is worrying at the same time, the production and sales volume of second-tier and third-tier heavy truck companies rose instead of falling. From January to June 2011, Jianghuai Heavy Trucks sold 24,700 vehicles, an increase of 90.96% year-on-year. SAIC Iveco Hongyan sold a total of 22,700 vehicles, an increase of 17.03% year-on-year, and Foton sold a total of 65,700. Vehicles, an increase of 12.57% over the same period last year. Of the top 9 heavy truck sales in the first half of 2011, 6 achieved year-on-year growth.
However, it should be noted that these companies that have achieved year-on-year growth have one thing in common: that is, the product base is relatively small, even if the increase is large, but the absolute share of the entire market is also very limited.
Why the market is generally sluggish
The downturn in the heavy-duty truck market has a lot to do with the macroeconomic situation. The most important reason is that the country’s 4 trillion bailout plan started in 2009. The projects it invested gradually ended this year and the amount of work was significantly reduced, especially new ones. The reduction of large projects started will directly reduce the number of newly added heavy trucks.
In fact, the heavy truck market continued to prosper from 2009 to 2010, and the downturn since 2011 is also expected. In 2010, the total number of heavy trucks in China reached 4.5 million, of which nearly 2 million were sold after 2009, which can be described as blowouts. It is also normal for the market to fall after the blowout. Since 2011, the business environment of enterprises has been facing challenges. The national macro-control has tightened, the cost of credit has risen, and new standards have tightened; at the same time, the continuous increase in labor costs, raw materials, and energy prices are all negative factors for heavy truck sales. .
What is the killer of the second and third line brands?
At present, China's heavy truck market is facing rampant. On the one hand, heavy-duty truck production capacity is far greater than the market capacity. On the other hand, heavy-duty truck products are increasingly homogenous, the quality gap between products is shrinking, competition among producers is fierce, and product profitability is decreasing. If the industry environment is the same, then what will be the second and third line brand?
According to industry insiders, there are two main reasons: First, the second- and third-tier brand heavy truck companies have performed prominently in the regional market and seized a portion of the market share of mainstream heavy truck companies. Shangqi Iveco Hongyan, the country has always attached importance to the construction of basic industries in the western region, while the Southwest market is the main battlefield of SAIC Iveco Hongyan; In addition, SAIC Iveco Hongyan's sales base in the same period in 2010 was lower. The two-pronged approach improved the market growth rate of SAIC Iveco Hongyan in the first half of the year.
The reason why second- and third-tier brand heavy trucks will attract some consumers is not unrelated to their increasingly sophisticated after-sales service system. For example, an important factor that attracts owners of JAC heavy trucks to purchase is that manufacturers have provided 18 months and 150,000 km of long-term quality assurance for new vehicles, and have carried out nanny-type service projects at 364 service outlets across the country, providing efficient repair and maintenance for users at any time. service. These aftermarket subtleties, smaller brands will pay more attention to it, which is one of the killers of the second and third line brands competing for the market.
Industry structure or current turning point
Due to changes in the market environment and demands for upgrading the quality of heavy trucks, China's high-end heavy trucks will grow rapidly in the next decade. In this process, the competitive landscape of the heavy-duty truck industry is likely to be rewritten, and the second- and third-tier brands will occupy a greater market share by virtue of their home field advantages in production sites, more reasonable price/performance ratio and after-sales services. .
For the judgment of the future situation of the domestic heavy truck market, there are different voices in the industry. If the economic structure of China's infrastructure construction such as reinforced concrete has changed, China’s heavy truck sales will not continue to grow in the future. If we do not follow the globalization road, we will face very great risks. After the market demand shifts from the low end to the high end, in the new round of wrestling, whether the foreign brands or the upgraded independent brands are more competitive, there are still many variables.