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On March 29, 2013, Weichai Power Chongqing passenger car project was officially laid out. The plant covers an area of ​​more than 1300 acres, and the planned new factory area is 140,000 square meters. It has four major processes for vehicle manufacture. After completion, the annual production capacity is expected to exceed 30. 10,000 cars.
It is reported that the Weichai passenger car project already has a series of production licenses for various models. The product types include small-sized SUVs, home MPVs, and high-end pickups, which do not involve cars at the moment. It is expected that in the first quarter of 2014, the first small SUV will be officially released.
According to the Shaanxi State-owned Assets Supervision and Administration Commission on May 17, 2010, the Shaanxi Provincial Government has agreed in principle that Weichai Power shall be 100% controlled by Shaanxi Heavy-duty Truck Co., Ltd. (hereinafter referred to as “Shaanxi Heavy Duty Truckâ€), and believes this is to Important strategic choice.
On March 8, 2011, Yaxing Bus issued an announcement: Weichai Automobile Group passed Weiqiu (Yangzhou) Yaxing Automobile Co., Ltd. (hereinafter referred to as “Weichai Yangzhouâ€) for free to Jiangsu Yaxing Automobile Group Co., Ltd. ( The 51% equity of the company held by the "Asian Star Group" will become the actual controller of the company.
Market Changes Force Weichai to Accelerate Business Extension
Weichai through this step by step action, from a high-speed diesel engine production enterprises to the production of vehicle companies, we can see that many steps Weichai has taken before, are through the acquisition of capital operations, extending its own industrial chain This time, the establishment of the plant shows that Weichai has shifted from capital operation to physical investment and accelerated the extension and expansion of its business.
In 2010, the sales of heavy trucks in China reached 890,000 units, while Weichai spent 414,000 heavy truck engines in the same year, with a market share of 40.7% and operating revenue of 63.28 billion yuan.
By 2012, the annual sales of heavy trucks were 636,000, a year-on-year decrease of 27.8%. Weichai sold 207.5 million heavy-duty engines, a 34.8% year-on-year decrease, and revenue of 48.17 billion yuan. It can be seen that during the two years, the decline rate of heavy truck engine sales of Weichai is greater than that of heavy truck sales, indicating that its market share is shrinking.
For many years, Weichai has been the main supplier of domestic commercial vehicle market. Manufacturers once complained that their production capacity was “snabbedâ€, but as many manufacturers have built their own engines, or have installed other brands of engines, they The patience is gradually reduced. Under the background of the shrinking industry-wide environment, driven by the sense of urgency brought about by the shrinking of its own market share, Weichai needs to develop new growth points for its own development, and it needs to find new development outlets.
Risk players in the passenger car market need to be cautious
According to data from the China Automobile Association, a total of 15,495,200 passenger vehicles were sold in 2012, an increase of 7.07% year-on-year. According to the data analysis, compared with sales of 14,472,400 vehicles in 2011, a year-on-year increase of 5.19%, both the sales volume and the growth rate, the passenger vehicle market performed better than the commercial vehicle market.
However, the current policy of restricting purchases and restrictions on travel in cities has affected the market, causing more consumers to choose imported or joint venture brands, and the market for self-owned brands has been further squeezed. At the same time, the cost-effectiveness of self-owned brand products has also gradually increased, gradually forming a non-price factor competition, which has intensified the increasingly fierce competition in the passenger car market.
However, the market for its new model, the SUV, is relatively good. In 2011, the SUV sold a total of 1.5996 million units, a year-on-year increase of 20.19%. In 2012, the cumulative sales volume of the SUV market was 1.837 million units, a cumulative increase of 22.7% year-on-year, accounting for 13.9% of the narrow passenger car market. It can be said that Weichai has made a lot of efforts in selecting the first type of cart.
Weichai, who is an engine maker, has more core technologies, and its holding companies already include Fast-Drive Systems, Heavy Duty Trucks - Heavy Truck Production, Yaxing Bus - Passenger Car Production and other related fields. Investing in huge amounts of money to enter the vehicle manufacturing industry in this status is because it considers its own inherent business, engine manufacturing, to belong to the entire industry category, especially in the course of the corresponding business extension, which can be used as a core technological advantage.
However, as a technology- and capital-intensive industry, the automotive industry has a high demand for production, logistics, marketing, and post-market services. A series of links such as horses, product research and development, brand building, and marketing network establishment on the production line require companies to have long-term high input capabilities. Once one of these links is not properly grasped, it will affect the development of the entire enterprise. Weichai has the largest technological advantage currently in the design and production of diesel engines, gearboxes, transmission systems, and commercial vehicle frames. For passenger cars, the appearance, comfort, interior, etc. Weaknesses. If the passenger car market is likened to a game, new players will face greater pressure and more challenges.
Capital operation and entity management are two different things
Automobile industry analyst Cao He believes that the purpose of Weichai's entry into the passenger car market is very clear and its thinking is clear. However, entering the passenger vehicle market requires a lot of money and time. This is not necessarily a good strategy. It should be It is a problem that must be considered by Weichai.
He said that after Weichai acquired Shaanxi Heavy Duty Truck and Fast, from Weichai to Shaanxi Auto, the operation of all aspects was not very smooth. The acquisition of Yangzhou Yaxing was also unsuccessful, and the company did not greatly improve in all aspects. Weichai should first solve the problems of these acquired companies.
Cao He finally stated that the capital market will be optimistic about short-term acquisition topics. After the acquisition of Yaxing, Weichai will be favored in the short term, and there will be downward pressure in the medium to long term.