After decades of development, FAW Liberation and China National Heavy Duty Truck have played an important role in the domestic heavy truck industry. The success achieved in the heavy truck field did not allow them to meet. Today, they have turned their sights on the light truck market.
In choosing to develop a light commercial vehicle, the two companies are quite different: FAW tried to jointly promote liberation of light trucks through a global joint venture with GM; China National Heavy Duty Truck chose to integrate existing light domestic Commercial vehicle company resources to make up for its shortcomings in commercial vehicles.
At present, FAW and Sinotruk's preparations for light commercial vehicles have been basically completed. The addition of these two heavyweight rivals will make the competition in the light commercial vehicle market more intense.
FAW: Joint venture to seek light truck
FAW has always been a short board due to lack of resource integration in the light commercial vehicle segment. In terms of production and sales volume, FAW light commercial vehicles ranked fifth in the country below Futian, Dongfeng, Jianghuai and Jiangling. In order to compensate for the shortcomings of light commercial vehicles, in August 2009, FAW and GM cooperated to establish FAW-GM Light Commercial Vehicles Co., Ltd., which opened its full integration of light commercial vehicle business.
The first joint venture to produce light trucks is a common demand of FAW and GM. For FAW, it has its own passenger car business, and sales of light trucks have been suppressed by light truck companies such as Dongfeng, Jianghuai and Jiangling. In the product line of general commercial vehicles, high-end light passengers and pick-up trucks are mostly, while light-card products that meet the needs of the Chinese market are almost absent. Therefore, only five months after the establishment of the joint venture company, the first product of the joint venture was locked on the light truck.
Although the current liberation of light truck 501 is not very big, but for a new product, it still has a space for market growth. FAW-GM is full of confidence in light truck products. It is understood that FAW-GM is currently developing the next generation of light truck products.
At the same time, FAW GM also gave strong support to its light truck products in terms of capacity. A few days ago, FAW Harbin Light Automobile Factory had been completed, and it is expected to achieve light truck mass production at the end of May 2011. Together with the 100,000 production capacity of Qujing Plant in Yunnan, by 2012, the light truck capacity of FAW GM will reach 200,000 units. At the same time, the Harbin plant also reserves the capacity for expansion of 100,000 vehicles for the future.
For FAW GM, which has been in the joint venture for more than a year, it has not introduced the general commercial vehicle brand GMC. This has led many in the industry to mistakenly believe that GM is only a “foreign butler†employed by FAW. Until the end of 2010, FAW's Changchun plant officially put into production, announced that it would gradually produce four models of general pickup trucks, SUVs, MPVs, and light buses, which made this rumors disappear. At present, the new plant already has an annual production capacity of 80,000 vehicles. According to the new factory's production plan, it will be dominated by pickup trucks, and then will introduce SUVs and light buses from GM. The capacity of the new factory in the future will reach 200,000.
With the introduction of GM's high-end light passenger cars, it will fill the gap in FAW's light passenger cars, and its high-end positioning will also be in line with the current high-end development trend of light passenger products.
China National Heavy Duty Truck: Merger and Strength
In fact, China National Heavy Duty Truck has always had its own passenger car production line, but the output is not large. At the same time, under the background of the outstanding performance of heavy trucks, the sporadic passenger bus business is even more deficient. Although heavy trucks made China Heavy-Duty Trucks proud and lifted them out of the dilemma of loss, China National Heavy Duty Truck achieved a "heavy" status. However, it remained strong on one hand and it was difficult to survive in a highly competitive market. It is also extremely high.
Therefore, while Sinotruk maintains the status of heavy-duty commercial vehicles, it also needs to develop into light-duty commercial vehicles. Sinotruk has chosen to take the path of rapid expansion of mergers and reorganizations. In terms of the layout of light commercial vehicle segments, in 2010, China National Heavy Duty Truck has successively acquired companies such as Sichuan Ace Card and Fujian Yong'an, which are known for medium and light products. Chengdu Trump Card and Fujian Yong'an are two companies mainly engaged in the production of medium- and light-duty trucks. The products are below the tonnage of heavy-duty trucks. Their market layout and product arrangement are in line with the long-term development plan of China National Heavy Duty Truck on the one hand, and China’s heavy weight on the other. Steam's product chain, starting with heavy-duty vehicles, extends downward.
Perhaps because the same is the origin of manufacturing trucks, so in the choice of the type of product that will be the first to force, China National Heavy Duty Truck and FAW are also focusing on light trucks as the main focus, starting with the light trucks to gradually improve the series of light commercial vehicles. At the 2011 annual business meeting, the new light truck produced by China National Heavy Duty Truck Group Chengdu Ace Commercial Vehicles Co., Ltd. officially debuted, and its products will enter flat-bed trucks, vans, and special chassis markets.
The development strategy of China's heavy truck Chengdu Trump is "first lighter and later heavy." China National Heavy Duty Truck has a perfect plan for Chengdu Trump. In the first step of 2011, it will concentrate on the development of light trucks with a production and sales target of 100,000 vehicles. According to the long-term plan formulated by both parties, Sinotruk and Chengdu Trump will build the joint venture company into a commercial vehicle base with an annual output of 400,000 vehicles. In 2015, it will strive to achieve the goal of 100,000 medium- and heavy-duty trucks and 300,000 light and micro-cards for production and sales. .
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