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Nanjing Xugong Automobile Manufacturing Co., Ltd. is the latest name in a car industry. How does the company compete in the white-hot auto market? On February 28th, 2009, the company held a business conference in Nanjing. Chairman XUMIN of XCMG made it clear: “Heavy trucks are strategic products that Xugong has invested heavily in, and it is necessary to make great efforts to develop. We will be within two years. It invested RMB 500 million in advance to speed up the verification and switching of the National III engine, speed up the development and manufacturing of new models, and create the production capacity of 10,000 new heavy trucks. By 2015, it will continue to invest 1.5 billion to 2 billion yuan to actively carry out international activities. Cooperation, the introduction of advanced product technologies, and active development of urban construction and sanitation vehicles, large-scale mining transport vehicles, special vehicles, military vehicles and other fields, the formation of core technology, and strive to achieve an annual output of 50,000 vehicles in five years, the goal of China’s heavy truck first group army has made Xugong Heavy Truck a very competitive international product.â€
Optimistic about the heavy truck market
In July last year, Xugong purchased Chunlan Automotive as a whole, hoping to hope for a 20-year car dream. However, when Xugong acquired Chunlan, it was also the day when the auto market contracted. Under the backdrop of the international financial crisis and China's macroeconomic cyclical adjustment, the overall decline of the auto market was precisely at this moment, and it was also at the time of the two countries and three countries. The switching of emission standards has caused consumer overdraft in the heavy truck market, which has made the already intensely competitive heavy truck market more cruel.
Does Xugong Automobile have no hope? According to Yang Yong, general manager of Xugong Motor Co., even though the market will still be affected by the downturn of the macro economy this year, there will be no major decline in total sales. The investment of 4 trillion yuan will surely boost market confidence and make the market develop in a healthy direction. This is mainly due to the fact that China is still a developing country with huge potential for development and the financial system is very healthy. On this good basis, the investment of the Central Government, together with the supporting inputs of local governments, will surely make the Chinese economy recover quickly. Whenever the government invests heavily, the heavy-duty truck market will flourish. This is the characteristic of the heavy-duty truck market today, and it is the confidence of XCMG in the future.
Judging from the development trend of China's economy, this year's heavy truck market in China will have the characteristics of being low and high. Although the previous low and high will bring certain difficulties to the operation of Xugong Motor, it will leave a good opportunity for XCMG to enter the market in a solid manner.
Main attack cross market
Market competition is not only capital competition, technology competition, but also differentiated competition. If traditional heavy truck companies compete with mainstream heavy truck companies in China, Xugong Automobile has almost no advantages, but if it is dislocated, it is precisely the unique advantages of XCMG.
Different from other companies that cut into the automotive market, XCMG is well-known in the field of construction machinery in China, has a strong capital advantage, and has experience in managing large-scale enterprises and a talent team. XCMG's brand power is not available in certain enterprises. Therefore, Yang Yong's first initiative in marketing is to “concentrate resources on fighting hardshipsâ€, that is, to make full use of the advantages of XCMG and concentrate on fighting the construction machinery and related special-purpose vehicle markets. On the one hand, we will focus on the dump truck product market. With the characteristics of being able to dig, load, and transport, we will tear a hole in the market where earth-moving machinery is used, and use this as a starting point to establish a strong car that fits with the XCMG brand. Brand. On the other hand, relying on the XCMG Group's understanding of the chassis of special vehicles, it has rapidly improved existing products, explored the market for special vehicles and modified cars, and formed another main attack point in marketing. Yang Yong did not give up the attention of the tractor market. XCMG will vigorously carry out propaganda and promotion work in logistics-based areas. Before the market is started, the day when the market starts is the time of the XMGG harvest. The second major measure is "a surprise attack on key markets." XCMG didn't choose to attack all markets in the country. Instead, it chose the traditional sales area of ​​the original Chunlan car to carry out marketing in the original network of Chunlan, and developed it to the special car and modified car market, and then expanded to other provinces. The third major measure is to open up overseas markets. In Yang Yong’s opinion, although the international market has been affected by the economic crisis, many countries still prefer Chinese cost-effective heavy trucks. Therefore, Xugong Automobile has established an export support department to coordinate export business and cooperate with Xugong Import & Export to open up overseas markets. .
In the aspect of development strategy, XCMG will adopt a combination of high-end technology, introduced technology, and independent innovation. Product technology will strive to differentiate itself, and differentiation will highlight Xugong’s advantages and win market differentiation.
Positioning: facing the world
Judging from the current market competition, the homogenization trend is increasingly serious, and homogeneity in the use of key components such as engines, transmissions, and axles is particularly serious. Therefore, XCMG will position itself in the high-margin, mid-to-high-end heavy truck market, and make efforts in the aspects of quality-price ratio, performance-cost ratio, and performance quality difference to highlight the advantages of Xugong Automobile.
Although China is still the largest and most realistic market for XCMG, XCMG will seriously treat the entire process of product development, R&D, production, and going public with standards that face the world. It is reported that XCMG has established its own three-step policy: First step from the main trucks and construction vehicles into the market, select products similar to the construction machinery, focusing on the development of special vehicle chassis. The second step is to increase the market share of products for trucks and construction vehicles, build construction vehicles and tractors, achieve product portfolios of different grades and different price levels, and gradually realize the independent production of key components. The third step is to enter the high-end market with large horsepower and large tonnage and develop a batch of new products with development potential and scale. In addition, they will also actively cooperate with foreign R & D institutions to improve the technical level of vehicles and components.
This year, XCMG will invest 200 million yuan on the basis of careful analysis. With reference to the international advanced models of the European Union, XCMG will jointly develop new products with scientific research institutions. Through the introduction of talents, advanced technology and equipment, relying on the XCMG Group’s powerful experimental research center, we will focus on the research and development of auto vehicle matching and optimization, key parts and assembly quality control, improve product reliability, and enable enterprises to focus on core products and core technologies. Have more independent intellectual property rights. Jiangsu Province has approved Xugong Group to invest 450 million yuan to establish the Jiangsu (Xuzhou) Engineering Machinery Research Institute, and will grant 50 million yuan in grants for the first phase. Xugong Group will use this as an opportunity to establish an automotive research branch in Nanjing for research and application. Coordinated development of research results, and gradually formed innovative development capabilities, so as to cultivate and form their own core competitiveness. In terms of vehicle performance, the overall performance of chassis, body and engine matching is optimized, and the transition to safer, lighter, and higher-speed heavy-duty vehicles is achieved. Through the introduction of technology, independent development, and then optimize the technology introduction structure, improve the quality and efficiency of technology introduction, and gradually establish an innovation system that takes the enterprise as the main body and market as the orientation. On February 28, Xugong Motors held a launch ceremony in which 20 heavy vehicles were sent to North Korea. Apart from Chinese dealers, there are also some foreign faces in the business conference. Obviously, XCMG has already laid out its future market with the mind of “bearing the motherland and looking to the worldâ€.