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The national "two sessions" that have attracted so much attention have just come to an end. This year's government work report clearly puts forth issues such as the elimination of yellow-label vehicles, old vehicles, and national standard IV diesel fuel for suppliers. In December last year, the Central Economic Work Conference, the most authoritative benchmark for judging the current economic situation and setting the second year of macroeconomic policies, was held in Beijing. The meeting clearly put forward six major tasks for this year's economic work.
From these two major events, we can see that China's heavy truck industry is facing an important opportunity for development.
Economic Leverage Drives Market Demand
According to the government work report, in 2014, the main target for China’s economic and social development is the growth of GDP by 7.5%, and the increase in consumer prices is controlled at around 3.5%. This is undoubtedly a good news for the commercial vehicle market. It is generally believed that the rise and fall of the commercial vehicle market is closely related to the performance of GDP. If China's GDP can continue to maintain steady growth, the demand for commercial vehicle market will increase further in the future.
The reporter found that both the Central Economic Work Conference and the government work report all involved the development of the regional economy as the main task and key work in 2014. For example, the state will cultivate new regional economic belts as a strategic support for development, give priority to the development of the western region, and fully revitalize the old industrial bases in the northeast. We will vigorously promote the rise of the central and western regions and actively support the economic transformation and upgrading of the eastern region. We will implement differentiated economic policies from the east to the west and from the coastal areas to the inland areas to promote industrial transfer, develop inter-regional large-scale traffic, and create new regional economic growth. In order to fully build a well-off society. It is easy to find that whether it is the development of the western region or the economic transformation and upgrading of the eastern region, more manpower and material resources are required to invest in economic construction. Large-scale production and construction and interregional logistics will inevitably increase the demand for heavy trucks in the market. .
“The state has always been advocating the development of the western region, and the development of the western region needs the improvement of infrastructure construction, such as the construction of cities, the construction of supporting facilities, the development of economic development zones, and the construction of industrial zones. Only by perfecting infrastructure construction can we truly develop the regional economy. Well, such a large-scale infrastructure construction naturally requires more building materials and transport of building materials to carry vehicles. In the future, this will be a big market.†Zhao Zhigang, deputy general manager of Shanxi Tianyi Automobile Trading Co., Ltd., told reporters.
Not only that, the government will also work hard to solve the housing problems of the people in order to ensure the protection and improvement of people's livelihood. To increase the construction of affordable housing such as low-rent housing and public rental housing, and to complete the construction of a series of housing and ancillary facilities such as shanty towns, will also play an important role in boosting the terminal demand in the heavy truck market.
“Whether it is the construction of the western region or the construction of housing, it will certainly drive the sales of heavy trucks, but the process of this increase will not be an abrupt increase. It will be an orderly and sustained growth.†Vice President of Hebei Tongli Automobile Trading Co., Ltd. Zhang Wenshan, general manager, said: “The country leverages market leverage to regulate supply and demand so that the market can achieve an orderly, healthy, standardized and sustainable development. The same applies to commercial vehicles. Under the influence of market supply and demand, heavy trucks in the future will also show a Orderly, healthy and sustainable development."
Good policies guide the development of the industry
In recent years, with the continuous development of China's heavy truck industry, the gap between self-owned brands and foreign high-end brands is gradually narrowing. However, it is undeniable that China's independent brands are not far away from foreign high-end brands in terms of technology research and development, manufacturing process, and product quality. One of the main reasons for this result is the shortage of professional talents. Compared with the foreign heavy truck industry, China's heavy truck R&D is constrained by the shortage of talents. The lack of attention to relevant talents and the lack of corresponding incentive mechanisms have caused a serious shortage of talents in the heavy truck industry. “We lack the personnel who are versed in this knowledge, so our company is very difficult in the product development process. Many excellent people are hired by foreign companies, or join other industries.†Zhao Zhigang said.
In response to the problem of talent reserves in various industries in China, the government work report proposes to implement the talent development plan in depth, coordinate major talent projects, and encourage enterprises to establish a mechanism for linking R&D personnel remuneration and market performance so that the contribution of talents can be matched with returns, and various talents can come to the fore. Only use their talents to make the best use of them. "From a long-term perspective, this has great benefits for the development of heavy-duty truck companies. Only by retaining talented people, companies can obtain high-quality products and thus surpass foreign advanced branded products. If there are more talented people to join, the outlook for the heavy truck industry will be bright,†said Zhang Wenshan.
Compared with the relatively saturating domestic heavy truck market, the overseas market has great potential. Many domestic heavy truck companies have already made export revenues a key part of their marketing strategy. This year, the government proposes to strengthen macro guidance and services for going global, provide accurate information on foreign investment, simplify foreign investment approval procedures, promote product export, enhance export competitiveness, and other policies. It is undoubtedly a heavy truck that wants to go global to open up new markets. The company provides excellent opportunities for development. "A lot of companies' overseas business has been equal to domestic business. Now our heavy trucks have been exported to South America, Africa, Russia, Southeast Asia and other regions and countries, and gradually gaining a firm foothold." Zhang Wenshan told reporters: "The new foreign The export policy is more conducive to heavy truck companies exploring overseas markets and at the same time further driving the development of the heavy truck industry."
In the past two years, air pollution control has become a commonplace topic. Whether it is the full supply of National IV standard vehicle diesel or the elimination of 6 million yellow-label vehicles and old vehicles, it will undoubtedly accelerate the replacement of vehicles in the market. At the same time, this has also brought new opportunities for the development of the heavy truck industry. Zhao Zhigang said: “This time, the country’s governance of air pollution has virtually provided a rare opportunity for the development of car companies. The market has eliminated 6 million yellow-label vehicles and old vehicles, and it is bound to add new cars that meet emission standards. This has led to the development of the company, and with the full implementation of the National IV, customers will also consider the use of cycle issues, and thus choose to use a longer period of the National IV vehicles, which has also been for the development of the heavy truck industry has been at the forefront of certain Promoted."
Opportunities and challenges coexist
With the development of regional economy, adjustment of industrial structure and governance of environmental pollution, the heavy truck industry once again ushered in opportunities for development, which made people have more expectations for the development of China's heavy truck industry. However, we should clearly realize that any industry in development is an opportunity and a challenge.
In order to improve the atmospheric environment, the state will also strengthen the environmental protection, energy consumption, and technology standards for industries with serious excess capacity, clean up various preferential policies, digest a batch of stocks, and strictly control new increments. This year we must phase out backward production capacity of 27 million tons of steel, 42 million tons of cement and 35 million standard boxes of flat glass. Not only that, the country will also control the total energy consumption. This year, the intensity of energy consumption will be reduced by more than 3.9%, and the emissions of sulfur dioxide and chemical oxygen demand will have to be reduced by 2%. We must increase the proportion of non-fossil energy generation, develop smart grids and distributed energy, encourage the development of wind energy and solar energy, start a batch of hydropower and nuclear power projects, and strengthen exploration, exploitation and application of natural gas, coalbed methane, and shale gas. The reduction in the production capacity of iron and steel building materials and the reduction in the proportion of power generated by ore energy will directly adversely affect the market demand for heavy trucks.
“The reduction of iron and steel building materials and ore transportation will directly affect the demand for heavy trucks in the market. Take Hebei as an example. With the adjustment of the eastern energy structure, Hebei will reduce the consumption of coal by 60 million tons in the next few years. More, less coal, transportation will inevitably reduce accordingly, heavy truck market is bound to be affected.†Zhang Wenshan told reporters: “However, energy structure adjustment is a gradual process, heavy truck industry still has time to make adjustments to the future market, if not With timely adjustment, the industry will face a severe situation."