Shanxi heavy truck market sales environment deterioration dealers are still optimistic


Moderator: Shanxi is a well-known large-scale province of coal transfer. The huge demand for heavy trucks has made the Shanxi market always a hot spot for the company. However, from the second half of last year, the demand for heavy trucks in the Shanxi market has turned sharply. Many heavy truck companies have talked about the changes. This year, heavy-duty trucks around the world have seen some degree of recovery. How is the heavy truck market in Shanxi now?

Wen Feng: Now the number of cars on the road is more than it was in the previous months, and sales in April are also better than in March, but it is still less than the same period last year, similar to the 2005 market. At present, the market demand is mainly dump trucks. Sinotruk's sales did not catch up with last year, but its market share has increased.

The vast majority of Shanxi heavy trucks use coal char for transport. Before the Beijing Olympics started, many Shanxi mine owners were burning coal. After the Olympic Games, the price of coal coke has been falling, resulting in the current enthusiasm of the mining owners is not high, which directly led to the downturn of the heavy truck market in Shanxi.

Qi Zhilong: In addition to the low enthusiasm of some mine owners, the strict control of the country is the reason for the shrinking production of coal coke. Although the annual inspections have passed, in addition to the state-owned mines, other mines currently do not have production licenses. The mine will not be opened and there will be no improvement in sales of dump trucks. In addition, Shanxi has stricter regulations on emission standards. Even vehicles equipped with built-in EGR engines are not given to households because the vehicles cannot distinguish whether they are in compliance with State III emissions.

Under the influence of multiple factors, from the second half of last year to the present, our sales have not been good.

Recently, many people have said that the Shanxi market started. I think this is not exact. We have always been committed to being an end user and I go to the mine almost every day for a look. I once learned about the situation on a mine. An engine company person called me and said that a brand dealer sold 200 more cars and happened to invest in mine at the time. You know, the new car is very conspicuous, but don't say 200 cars. I didn't even see 20 new cars in the mining area.

In addition to dump trucks, the tractor market has not completely recovered. Now the dry riverbed in Ningwu has become a parking lot, and a heavy truck with one car stretches for several kilometers.

Cheng Zhijian: In general, the downturn in the heavy truck market in Shanxi is inseparable from the government's supervision of safe production and road transport. On the one hand, the government has integrated coal mines, and the coal price has been low. The coal boss simply waits for opportunities. In February of this year, Shanxi produced less than 10,000 tons of coke, while the original output was 850,000 tons a month. The demand for heavy trucks was also It has fallen sharply; on the other hand, Shanxi is the hardest hit area for security accidents. Several major accidents in Shanxi this year have been related to heavy trucks, so the government has strictly checked the overload limit. The process of supplying less goods and doing a good job is also not satisfactory. The transport operators will simply wait and create the current situation.

Moderator: Shanxi dealers told reporters last year that the off-season should increase the intensity of the excavation market. After more than half a year passed, has there been any change in the way of developing the heavy truck market in Shanxi?

Wen Feng: We have two priorities for this year's work: one is to digest inventory vehicles; the other is to intensify the call for installment loans. Reliance on older users is now more difficult and less work. Most of the old users' vehicles are saturated. Therefore, in terms of market sales, we are focusing more on excavating new sales growth points. For example, Shanxi's highways, railways, and urban roads are being gradually started. These projects will all have some new vehicle demand.

Qi Zhilong: At present, we try to reduce the use of nets to run, to get a clear car information will be to do public relations work. This year, the Shanxi market has changed a lot. I once went to Vietnam's Dongxin Port and talked to the local coal bosses that the people's imported coal was just over 300 yuan (43 US dollars) per ton, which is cheaper than buying local coal in Shanxi. This means that coal prices in Shanxi will not start at one and a half. Therefore, this year we no longer blindly scatter the net, run around the market, visit our family, and instead focus on real people.
In addition to the key projects that require attention, the contact with old customers cannot be broken. First, it means that we do not lose their feelings with them. Second, it also makes it easier for us to understand the changes in the market.

Cheng Zhijian: The number of cars that are out of service is still high, and the market is changing. In addition to focusing on customer changes, we have also been committed to recommending models to users that better fit their transportation needs.

Moderator: In such a difficult situation in the Shanxi market, has the company's support for distributors changed?

Wen Feng: Currently selling the best in Shanxi is Beiben Heavy and the order volume is already about the same as that of China's heavy truck, reaching about 500 vehicles. The sales of Beiben Heavy Duty Truck are closely related to the close support of the company. The company gave the dealer a delayed payment policy, which can be repaid within 8 to 10 months. This gives the dealer a certain amount of money. The dealer can use this amount of money to do the installment instalments. The user can purchase the down payment of 20,000 yuan. car. Although other companies have had similar financial support in the past, the low down payment and the longest payment period for Beiqi Heavy Trucks are not available before. Therefore, this activity has a significant stimulating effect on the market.

Not long ago, China National Heavy Duty Truck placed the right to pay in stages from the financial company to the sales company. The process was simplified and the threshold was relatively reduced. However, the heavy truck dealers in Shanxi Province still choose to do consumer credit. This year Shanxi distributors are more rational and avoid staging.

Qi Zhilong: Bei Ben Heavy Gas does have loan support. Now that someone is moving, there must be policy support. But this kind of policy is definitely bundled, and dealers also have to pay for it. Liu Automobile sold well in Guangxi, may not be aware of the severe market in Shanxi, so there is no action in this area. However, we did not fight for too many policies. We just hoped that prices would be lowered at certain times. Other aspects did not consider them.

Cheng Zhijian: The market is indeed very poor, many smaller sales companies have left a person at the door, and a maintenance company with a disproportionate size has been disbanded. Now big dealers are losing money, like our sales, services, plus a month to pay more than ten million. Without a market, what policies are all useless, not to mention that companies do not give policies, or that it is difficult for the market to have a big stimulus.

Moderator: Shanxi has been brewing self-produced heavy trucks. In 2007, China Southern Corp.’s investment in the China Military Equipment Group and reorganization of the Shanxi Province Automobile Industry Group established Taiyuan Southern Heavy Vehicle Co., Ltd., and has already put products into government procurement. Will the development of the enterprise make the current market situation worse?

Wen Feng: It is reasonable for Shanxi to support its own heavy truck companies. Although heavy trucks produced by Taiyuan South Heavy Duty Truck are now used in some of the sanitation trucks purchased by the government, their products are not very advantageous and have little impact on us.

In fact, CNHTC has also been looking at us many times and wants us to distribute their products, but we are not very optimistic about its current products. The product quality service system is not very smooth in operation, and the profit is higher and it also matches the risk. We are more inclined to be mature brands. In particular, the number of car users is less, and there is no end to the product, and we are even more reluctant to sell it.

Qi Zhilong: From the current situation, Taiyuan South Heavy Duty Truck and our product line is different, they mainly produce sprinklers, sanitation trucks, etc., we mainly promote the mining area special vehicles, basically no effect. Shanxi keepers are very smart and very familiar with the car. They will not use their money as a child. Of course, I also hope that the enterprises in Shanxi are good, but at present their products are not mature. As a distributor, I not only have to be responsible to the user but also to my own company.

In addition, I am still optimistic about Shanxi's market prospects. Shanxi's basic construction is still not in place. There are many places where investment is required in roads, airports, and urban construction. Heavy trucks will also have a lot to do in urban construction.

Cheng Zhijian: Southern Motors wants to make breakthroughs on heavy trucks. As long as it is done in a down-to-earth manner, there will certainly be opportunities in the future. However, “The business of selling abalone is booming and the business of selling noodles is also good”. As long as the market is good, everyone has food. Moreover, Taiyuan Southern Motors cannot cover all product lines. The use of vehicles is different. The choice of tonnage is also focused. To build a comprehensive product line, it will not be possible in three to five years. Therefore, I don't think this has much effect on us.

Moderator: In recent years, Shanxi Province has been searching for a way to “transmit coal without transmission”. What does this change in decision-making mean for the future Shanxi market?

Cheng Zhijian: This kind of macro-control will certainly have a profound impact on the changes in the model. In the future, there will be less mid- and long-distance transport, while the short- and medium-distance transport will increase, and the short-distance transport of applicable models will begin to become popular.

Wen Feng: To build a power plant for transmission, it will definitely drive the demand for dump trucks. Therefore, the sales volume of dump trucks in recent years is worth looking forward to, but there is certainly a change in the main sales model.

Although I began to shift to short-haul transportation, I think there will be demand for tractors. At present, Sinotruk's main model for short- and medium-distance coal transportation is the 8×4 dump truck. The announcement car is 1.5 meters high and can pull around 25 tons. At the end of May this year and early June, the announcement of heavy trucks of this type of vehicles was cancelled. The remaining vehicle announcements were only 1.2 meters high and the cargo volume was not enough. After that, the demand had to be transferred to the tractors. Therefore, the tractors will be towed in the coming years. The car market is also worth the wait.

Moderator: Coal mine consolidation, strict management overload, self-branding, transmission of coal without power transmission ... Shanxi heavy truck market has experienced a series of changes, the market temporarily difficult to see improvement, dealers to maintain their livelihood difficulties. How to survive in change? Tested the dealer's perseverance and wisdom. The author believes that the "downsizing" winter and "hibernate" waiting time is also a reasonable choice, but dealers should also pay attention to strengthen the communication with the enterprise, and timely feedback to the enterprise on the market, in the transformation of models, marketing strategies, etc. Rationalized advice.

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