“The domestic truck market will gradually shift from the rapid growth of the past to steady growth. Even in the next decade, market demand will decline.â€
Recently, at the 2014 (Fifth) Global Automotive Forum, Huang Gang, General Manager of Dongfeng Commercial Vehicles Corporation, made the above expectations when talking about the future development of commercial vehicles in China.
Dealing with Market Changes with Transition
In Huang’s view, the Chinese truck market is undergoing profound changes. “First of all, the Chinese truck market will gradually shift from high-speed growth in the past to steady growth. Even in the next decade, market demand will decline. Second, due to changes in public concerns, social environment, and energy security, it will be New requirements for automotive product technology have emerged; in the end, as the structure of truck users changes, China's transportation industry will also undergo profound changes.In the past, truck users were highly dispersed and dominated by individual users; but now, thanks to e-commerce. The logistics drive, more and more logistics companies are growing, which also leads to the rapid growth of the logistics industry. Truck users from decentralization to intensification will have higher requirements for products and services."
In response to changing market demands, Huang Gang believes that Chinese truck companies need to transform from three aspects.
"First, the mode of enterprise development must shift from the extensive style of the past to the connotation. The Chinese truck market is dominated by heavy trucks and is the world's largest truck market. Even if it declines in the future, it is still the largest market in the world. Under the situation, we must be able to adapt to the constraints of energy and environmental protection, so we must take the road of connotative development,†Huang said.
Huang Gang also pointed out: "Secondly, the grade and price of enterprise products must be improved; finally, truck companies must change from 'automotive manufacturers' to 'transportation solution providers', not only to provide products for customers, but also to provide corresponding Service solutions."
“When the market changes, truck companies can only adapt to changes in the market by innovating.†For this reason, Huang Gang has led Dongfeng Commercial Vehicles in recent years in the process of transformation and upgrading, and has introduced higher-end products to meet the higher requirements of the market in the future.
Market Opportunities Outweigh Challenges
In September this year, 10 departments including the Ministry of Communications, the National Development and Reform Commission, and the Ministry of Environmental Protection jointly issued the "Guidance Opinions on Promoting the Transformation and Upgrading of the Automobile Maintenance Industry and Improving Service Quality." The opinion put forward for the first time that the concept of “aftermarket†defines the role and status of the maintenance industry in the post-market.
Then, what are the challenges and opportunities for the truck industry in the development of the automotive aftermarket?
Huang Gang stated that due to the early start, the R&D and supply chain of China's commercial vehicles are well-developed. In the development of the automotive aftermarket, opportunities will still outweigh the challenges. "As an independent brand, we can provide domestic customers with the products they really need, and they can also provide customers with local transportation solutions."
"As the transportation industry moves toward intensive and efficiency, it is very important to pay close attention to the entire product life cycle. Although there is an increase in regulatory restrictions, it is very beneficial to allow more support technology data to be transparent. With the development of product technology, OEMs will have more opportunities,†Huang Gang said.
Huang Gang expects the future mainstream heavy truck demand may exceed 300,000 yuan, or even higher
At present, the domestic heavy truck market is still relatively decentralized, and the domestic mainstream demand is still concentrated between 200,000 and 300,000 yuan. “In the future, domestic heavy-duty truck products will be upgraded. Since most users will demand higher-quality vehicles and can accept higher vehicle prices, the demand for mainstream heavy-duty trucks in the future may exceed 300,000 yuan or even higher.†Judging.
“With the upgrading of user needs, some users no longer simply pursue product prices, but need higher quality, more reliable products, and more thoughtful maintenance services and transportation solutions.†Huang Gang said, “Dongfeng commercial vehicles are not only To improve products, to be a reliable truck manufacturer, and to become a supplier that can provide transportation solutions for users. At the same time, the markets we face are not limited to domestic markets, but also overseas markets."
Huang Gang predicts that in the next 10 years, China's truck market structure may change, but there will be no fundamental change. “In the future, the domestic truck market will still occupy 90% of its own brand, but companies need to race against time, increase the speed of development, and ensure that the speed of enterprise development is faster than the speed of market changes.â€
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