The global economic downturn caused by the financial turmoil that arose from last year has caused a huge impact on China's heavy-duty truck market. The supply of logistics materials has been drastically reduced, and the phenomenon of user vehicle transportation stops appears in many areas. Some people say that 2009 is a vital year for heavy truck companies. Then, in such a grim situation, how can Chinese heavy truck companies accurately judge the situation in the midst of difficulties, soberly grasp the steering wheel during the test, seize the development opportunities in the face of adversity, and advance to the bright future in the downturn?
The market situation is very serious
For the heavy truck market in 2008, people in the industry used a word to describe - "thrilling." In the first half of 2008, China’s heavy-duty truck market has been advancing by leaps and bounds, with cumulative sales accounting for 70% of total annual sales, and an average monthly sales volume of more than 60,000 vehicles. In the second half of the year, due to the impact of the international financial crisis, the situation changed rapidly. The monthly sales of heavy truck companies in China fell to the lowest level in three years. Market demand was sluggish. The average monthly sales volume was less than 30,000 vehicles. Just like the stock market madness stood at 6,000 points, all the way down to more than 1,000 points. No one expected it but it was a cruel reality.
It is understood that due to the continuing spread of the financial crisis, the unfavorable factors such as the declining economic conditions, falling investment, declining demand for coal and steel, and the continued reduction in road freight in some regions have directly curbed market demand for trucks. In addition, the decline in exports and the expansion of the scope of implementation of the National III standard, the implementation of the fuel tax, etc., have made the truck industry, which has been under tremendous pressure, even more unbearable.
According to the latest statistics from China Association of Automobiles, in May, the situation of sluggish production and sales of commercial vehicles did not improve, and the total production and sales volume and growth data were both lower, which was significantly lower than the average growth of the industry and could not be compared with the growth of passenger vehicles. Compared with April, the production and sales of commercial vehicles decreased by 15.89% and 9.77%, respectively. From January to April, the cumulative growth of trucks in commercial vehicles was 11.99%, which was 2.56 percentage points higher than that of the industry. In semi-trailer tractors, passenger cars and trucks, heavy trucks saw the most significant declines, and sales of semitrailer tractors fell by 69.21%. From a year-on-year perspective, a total of five types of subdivisions in the nine subdivision models have fallen, and four types of models have seen increases. Of the four types of models that rose, heavy trucks accounted for only one; while for the five types of models that dropped, there were three types of heavy trucks. Therefore, the overall situation of the heavy-duty truck industry is still severe, and companies are under great pressure.
Strong Confidence in Dilemma
In the face of such a severe situation, what do the heavy truck companies think? what are you doing? During the interview with the heavy truck companies, the reporter was pleasantly surprised to find that, regardless of whether China National Heavy Duty Truck, Shaanxi Automobile or Foton, etc., all major companies will establish confidence in the first place. "In 2009, China's heavy-duty truck industry faces both challenges and opportunities. But overall, opportunities are greater than challenges." The relevant person in charge of China National Heavy Duty Truck Group stated. In the face of the current situation, China National Heavy Duty Truck has firm three confidence: firm confidence in the market and demand; firm confidence in the country's macro-control; firm confidence in the development of the heavy truck industry. It is reported that in 2009, China National Heavy Duty Truck will ensure that the production and sales have increased compared with 2008, and strive to produce and sell 125,000 heavy-duty vehicles throughout the year, of which 20,000 are guaranteed to be exported and 25,000 vehicles are strived for. Strive to increase market share by 3 to 5 percentage points. Ensure that the sales volume, sales revenue and market share of listed companies have increased and improved.
A senior executive from Shaanxi Automobile Group told reporters that the more pressure you have to go, the more confident you are and the more optimistic you must be in the future. This is very important. Shaanxi Auto set a sales plan of 75,000 units in 2009 and strived to better accomplish its target tasks.
According to the person in charge of SAIC Iveco Hongyan Commercial Vehicle Co., Ltd., “We were able to survive the hardships in 2008 and we were even less afraid in 2009.†In November 2008, the heavy truck sales in the entire European market were only over 900 vehicles. There are 7 transnational heavy truck companies in the area. In contrast, the situation in China is much better. The substantial price reduction of raw materials has reduced the financial pressure on truck companies. Various measures taken by the country to stimulate domestic demand will promote the recovery of the truck market.
Meet challenges in adjustment
In times of market downturn, it is a good time for companies to calm down and rethink their thinking, adjust their structure, reform and innovate, repair their skills, and seek development. The head of China National Heavy Duty Truck Group said: “The adjustment of the national economy, the adjustment of the market structure, and especially the adjustment of the market demand structure have brought us good opportunities. Therefore, we must seize the opportunity to adapt our product structure to the needs of the market. Adjustments are made.†“The demand for large-scale tractors and dump trucks that the market demanded in the past has been declining as a whole, and the demand for high-powered, special-demanding special vehicles is increasing. This requires us to adjust our product structure and follow the trend. Otherwise it will be difficult to win in the competition."
Liu Keqiang, assistant to the general manager of Shaanxi Automobile Sales Company, told reporters that after studying and analyzing the new situation and new problems in the market, Shaanxi Automobile Group quickly adjusted its product structure and increased the production of special engineering vehicles. "In such an environment, we must seize opportunities. The market downturn is a different challenge for different companies. Some may grow, and others may be eliminated. This year we will continue to develop our products. Work hard.†He said: “The truck industry has undergone so many years of development, and there have been more and more changes in the product structure. Changes in ports, coal and other industries have led to a decline in the demand for road transport vehicles, and special vehicles and some The demand for special demand vehicles has increased. Therefore, we will adjust to changes in market demand in the new year."
At the recent Shanghai Auto Show site, Shaanxi Auto announced the establishment of the first heavy-duty new energy laboratory in China, hoping to take this opportunity to open up a new phase of innovation and energy self-owned heavy trucks. The goal of Shaanxi Auto is that by 2012, new energy products will account for more than 5% of the Group's heavy truck output, and its market share will remain first in the country.
The person in charge of Beiqi Futian introduced that in 2009 Beiqi Foton set a goal for itself to sell 60,000 heavy trucks. From January to April of 2009, the total sales of medium- and heavy-duty trucks (including non-integrated vehicles) at Beiqi Foton was 15,294. The operation was fairly stable, but the 2009 target was not optimistic. Beiqi Foton has long been aware of its lack of key parts and components, and in order to consolidate its position, further expand its market share and plan to dominate the field of heavy trucks in the future, Beiqi Foton is actively promoting key component investment while actively promoting Cooperated with the world heavy truck predators Daimler, and timely launched the new product Auman Intelligent 2009 Edition, which includes 6 series, 9 series and Jones 3 series of more than 30 models, has covered load dump trucks, tractors, trucks and Special vehicles and other full range of models.
Looking forward to stabilized
Experts believe that heavy trucks belong to means of production and that as long as the economy grows, sales will increase. With the gradual implementation of a series of basic construction projects of the country, although there may be negative growth throughout the year, the heavy truck market will continue to stabilize in the second half of the year.
Experts from the China Association of Automobile Manufacturers said in an interview with reporters recently that the state’s policy support for commercial vehicles has not been sufficient. At present, they are investigating proposed proposals and hope that the government departments will introduce more vigorous policies to promote the development of commercial vehicles. Experts believe that with the gradual introduction and implementation of the policy, the situation of commercial vehicles will be further improved, and the heavy truck market will re-emerge as the economy recovers and develops. It will step up the throttle and easily enter its own track.
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