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Recently, Weichai Motors announced the launch of a new car brand, Yingzhi, which will be the product of Weichai's light vehicle segment. In addition to Weichai, some commercial vehicle companies such as Beiqi Foton and Fujian Xinlongma also announced plans to produce passenger cars in order to find new opportunities for development.
Experts say that the pursuit of higher profits than the production of commercial vehicles is an important reason why many commercial vehicle companies are actively transitioning into the field of passenger vehicles. This desire has become even more pressing under the dual pressure of rising costs and shrinking demand in the commercial vehicle sector in recent years.
Layout of passenger vehicles
Yang Zaiyu, deputy secretary-general of the National Passenger Vehicle Market Information Association, believes that the “cross-border†impulse of commercial vehicle companies to the field of passenger vehicles is a strategic choice to adapt to market trends. In recent years, the growth of commercial vehicles in our country has been sluggish. The sales volume of trucks has been decreasing year by year, and heavy trucks have fallen drastically. Although the commercial vehicle market is still growing under the expectation of urbanization, the speed and scale obviously cannot be compared with that of passenger vehicles. In particular, the high-speed growth of the sport utility vehicle (SUV) market for many years has enabled commercial vehicle companies to see opportunities and lay out.
At the end of December 2013, Weichai (Chongqing) Automobile Co., Ltd. of Weichai Group announced the launch of the first passenger car brand, Yingzhi, and it officially announced its entry into the light vehicle business. It plans to launch a small SUV as the first model in the first half of 2014. Brand products.
To this end, Weichai Motor announced a three-step plan: The first step is to get the start of Yingzhi Brand and build an overall platform for Weichai Automobile, including Yingzhi's product structure system, supply chain system, and dealership system. Establish a production platform so that pre-production products have a place in a segmented market and establish a good brand reputation. The second step is to do a good job in leapfrog development, including the merger and reorganization of domestic and foreign companies, joint ventures and cooperation with other companies, etc., using a variety of models to achieve development goals. The third step is to do a good job in the international expansion of Yingzhi, and strive to enter the ranks of domestic well-known auto companies.
At the beginning of December 2013, Fujian New Longma Co., Ltd. applied for approval for the production of cross-category production multi-purpose passenger vehicles through the approval of the Ministry of Industry and Information Technology. This means that Fujian New Longma officially entered the ranks of passenger vehicle manufacturers and achieved Cars and commercial vehicles are used together to become the most complete vehicle manufacturers in Fujian Province.
It is understood that Fujian New Longma Automobile Co., Ltd. is a direct holding company of Fujian Automobile Industry Group Co., Ltd. Fujian New Longma will produce a series of passenger car products such as multipurpose vehicles (MPV), SUVs, and cars.
“According to the new strategy of 2020, Foton Motors is transforming in five areas. One of them is to expand the production capacity of passenger vehicles on the basis of the success of commercial vehicles,†said Wang Jinyu, general manager of Beiqi Foton Motor Co., Ltd. By 2016, Beiqi Foton will achieve a breakthrough in passenger cars.
According to Bei Yufeng, Assistant to General Manager of Beiqi Foton, according to the “2020 Strategy†formulated by Beiqi Foton, by 2020, the annual sales volume of Beiqi Foton will exceed 3 million, including 670,000 passenger vehicles. In the future, Beiqi Foton will also build a production base for millions of passenger cars in Weifang, Shandong Province, targeting domestic and foreign markets, forming a planned production capacity of 1 million passenger cars and 1.3 million engines.
Yang Zaifu believes that the current domestic commercial vehicle market has entered a mature period, the market products more often see the "quality" increase, there is little "quantity" breakthrough. The current growth rate of the domestic passenger vehicle market is much higher than that of commercial vehicles, and it has begun to shift to a mature development period. Although there are few opportunities for passengers in the passenger vehicle area, they are larger than those in the commercial vehicle sector. This is also the last chance for commercial vehicle companies to enter the passenger car market.
To seek new growth points <br> <br> re-Shun Yang believes that the collective force commercial passenger important reason is that the passenger car market with a high growth rate of the commercial vehicle market is facing a bottleneck in the market.
According to the latest statistics from China Association of Automobile Manufacturers, in 2013, the production and sales of domestic passenger cars were respectively 18.0582 million and 17.9289 million, an increase of 16.5% and 15.71% respectively. Dong Yang, executive vice president and secretary-general of the China Automobile Association, believes that in the next 5-10 years, the passenger vehicle market in China will continue to grow steadily with an increase of 8%-10%, even higher is expected.
Compared with the high growth of passenger vehicles, the situation in the domestic commercial vehicle market is not satisfactory. Since 2011, the commercial vehicle market has continued to be sluggish, and only slowly recovered in 2013. According to statistics, in 2013, the domestic sales and sales volume of commercial vehicles were 4.0316 million and 4.05252, respectively, an increase of 7.56% and 6.4% year-on-year respectively. The growth rate was not only lower than that of passenger vehicles but even lower than the average growth rate of the auto industry.
At the same time, the risk of overcapacity in the commercial vehicle sector is high. At present, in addition to large and medium-sized buses, there are excess capacity in heavy trucks, medium-sized trucks, light trucks, mini-trucks, light buses, and mini-buses.
The data shows that the current production capacity of domestic medium-heavy trucks is about 2.5 million vehicles (including chassis), but the market demand is only about 1 million vehicles; the capacity of light trucks is more than 3.5 million vehicles (including chassis), and the market demand is 2 million vehicles; With a capacity of 1 million (including chassis) for micro trucks, the market demand is about 550,000 vehicles. More than 500,000 light-duty passenger cars (including chassis) in China, the market demand is about 350,000; the capacity of mini-buses is more than 4.5 million; the market demand is about 2.3 million; the capacity of pick-up trucks is 1 million (including chassis) Above, the market demand is around 400,000 vehicles.
According to the law of development of commercial vehicles, combined with the industrialization process in China, Yang Zaiyun said that although China’s commercial vehicle production capacity is surplus, sales will continue to rise until 2020, but the overall trend will be saturated, and the growth rate of demand for commercial vehicles will not be too fast. After entering the post-industrialization stage in 2021, the commercial vehicle market scale began to decline, and the market share will continue to decline. Therefore, many commercial vehicle companies have become an inevitable choice to focus on the field of passenger vehicles.
<br> <br> risk can not be ignored for commercial enterprises to enter the passenger area, well-known automobile commentator Jia Xinguang said that although China's auto market large scale, but the competition is fierce. In recent years, the market segment for passenger cars has been "broken up." Commercial vehicle companies have entered the field of passenger cars and it is not easy to succeed.
Jia Xinguang is cautious about the entry of commercial vehicle companies into the field of passenger vehicles, and is related to Jianghuai Automobile (600418), which was involved in the passenger vehicle field earlier in the country.
In January 2007, Jianghuai Automobile obtained the qualification for car production. The following year, JAC's car production base was completed. The first passenger car, Binyue, was off the assembly line, and the JAC passenger vehicle business was launched rapidly. In November of the same year, JAC launched a small car A0 class car with Yuet.
In 2010, Jianghuai Passenger Vehicles established 150 franchised stores throughout the country, with sales exceeding 200,000 vehicles, accounting for 43.4% of the company's total sales for the year. In just 3 years, Jianghuai Motors has established a foothold in the passenger car market at a rate of 60% per year, achieving a transformation from a single commercial vehicle to a commercial-commuter-cum-all-in-one automaker.
However, the longevity was not long. In 2011, the growth rate of JAC passenger vehicles fell sharply. The sales volume was approximately 215,000 units in the year, an increase of 8% year-on-year (before that, the annual growth rate of JAC passenger vehicles was maintained at over 50%). In 2012, there were negative growth in major passenger car products in Jianghuai.
"Since the beginning of 2013, after seven months of discussion and research, Jianghuai Automobile made adjustments to the development direction in the second half of the year and established the development of a "bigger and stronger commercial vehicle and a refined and better passenger vehicle." Strategy.†In late November 2013, Jianghuai Automobile’s statement by Xiang Xingchu indicated that Jianghuai Automobile, which had been used as a successful sample of “transportation by businessâ€, began to shift its strategic focus back to commercial vehicles.
In this regard, Jianghuai Automobile said that the reason for the adjustment was that the previous passenger car had consumed a lot of effort, and even became a burden on profits. In contrast, commercial vehicles have always been an advantage of Jianghuai, with considerable scale and sustainable development capabilities.
According to analysis by industry insiders, the profit space of the passenger vehicle market is tempting to transform commercial vehicle companies. However, commercial vehicle companies must make breakthroughs in talents and technology. In addition, the sales channels and product characteristics of passenger car products are significantly different from those of commercial vehicles. However, commercial vehicle companies have not been involved in this field before, lacking relevant experience and facing great risks and challenges.
Yang Zaiyu believes that although the growth rate of the passenger car market is relatively fast, commercial vehicle companies will face many challenges in technology, talents, and brands in entering the passenger car market. It is not easy to gain market recognition. The passenger vehicle industry needs continuous large-scale investment. In addition, whether the commercial vehicle companies can meet the standards of the passenger vehicle market is the key to their success in terms of software and hardware support.
Jia Xinguang said that from the perspective of product properties, commercial vehicles and passenger vehicles are two completely different systems, one belonging to the production materials and one belonging to consumer goods; from the target users, the former is more for large customers and group customers. It is even more common for ordinary people with scattered features and different characteristics. Therefore, the demands for product quality, marketing methods and network channels, after-sales services and technical support are completely different. Commercial vehicle companies are involved in the field of passenger vehicles. They are not simply product transformations, but the overall strategic changes and changes in production and management methods. Only by completing these changes can they successfully enter the passenger vehicle industry.