Local, multinational car companies compete for commercial vehicle market
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Local commercial vehicle companies are going upwards and going global. Multinational companies are reducing their size and going in.
These two seemingly aspirations are being presented at this year's Shanghai Auto Show. Passing the lineup of exhibitors also conveys the message that they have been accelerating the pace of their desire to realize their hearts.
In the eyes of local companies, they see not only the domestic development trend, but also the business opportunities in overseas markets. However, multinational corporations are constantly changing their attitudes toward the unlimited market opportunities of the Nuggets.
According to statistics, local commercial vehicle companies exhibiting include China National Heavy Duty Truck Group, FAW Jiefang, Dongfeng Commercial Vehicle Company, Futian, Jianghuai, SAIC Iveco Hongyan, etc. Local commercial vehicle companies are facing the international market and have come up with more high-end new products. As far as product R&D is concerned, there are both Chinese and foreign cooperation as well as completely independent R&D.
At the same time, multinational corporations have also released new products that are closer to the "China's national conditions" to this market with huge potential for development. It is understood that at this year's Shanghai Auto Show, Iveco, Germany, Mann and Scania, the three multinational commercial vehicle companies released a total of 4 China's first new car.
The introduction of new products is not enough, Daimler Trucks (China) Co., Ltd. has set up a separate operation center in China for Daimler-Benz trucks to penetrate the Chinese market, improve operational efficiency, and increase product variety. This move is enough to prove that the Chinese market occupies a position in the territory of multinational enterprises.
Local: Internal and External Breakout
At present, local commercial vehicle companies face two development situations. One is the improvement of domestic emission standards and the entry of multinational companies into China to promote the improvement of product technology level of the entire industry. The Other is the expansion of overseas business territory.
Under the pressure of internal and external situations, local companies are breaking through both inside and outside.
There are two ways to upgrade the technology of one's own products. One is to integrate and absorb external resources and perform self-improvement. In addition, most local companies choose to cooperate with multinational companies to help them upgrade their branded products. For example, Sinotruk cooperates with Man, Futian and Daimler, Dongfeng and Volvo, Jianghuai and Navistar.
Product technology goes upwards not only to meet the domestic technological upgrading, but they also aim at these products in more high-end market areas, such as Sinotruk and Man's Sitrak positioning and import substitution, and FAW has independently developed the high-end J6. Heavy trucks also want to compete for high-end market share. Dongfeng also exhibited its self-developed high-end weapon at this year's Shanghai Auto Show, the flagship of Tianlong, and Huang Gang, general manager of Dongfeng Commercial Vehicle Company, said that it represents the future development trend of Dongfeng. The implication is that Dongfeng has long been paralyzed in the high-end market and it is imperative to take this step.
Enhancing product technology is not only meeting the needs of the domestic market, but also the vast overseas market is among their plans. In the past two years, under the backdrop of the domestic downturn, rising export volume has become a hot spot in the industry. In 2012, China’s automobiles exceeded 1 million vehicles for the first time, reaching 1,056,000, and commercial vehicles exported 390,000, an increase of 16.8% year-on-year.
In the process of volume growth, overseas exports have also undergone qualitative changes. Exporting countries have advanced from the underdeveloped countries in the past to “BRIC†countries; their export methods have also changed from simple trade to local investment. In the course of this series of changes, the technical level of its export products, the establishment of overseas production, sales, and service networks are imminent.
To break through overseas markets, many companies that have cooperated with multinational companies choose to walk on two legs. While developing on its own, the other side uses the power of its partners to break through. Take Foton as an example, its overseas strategy not only has its own “5+3+1†strategy, but after the cooperation with Daimler, the Auman products jointly built can also rely on Daimler’s overseas network.
Transnational: Deeply Cultivating China
In recent years, multinational commercial vehicle companies have developed rapidly in China, and sales have increased steadily. Last year, under the background of a 30% decline in the overall sales volume of the domestic heavy truck market, representatives of imported truck companies headed by Mercedes-Benz trucks still achieved different degrees of growth. The Chinese market has become a fertile ground for the development of multinational corporations. These multinational companies are also continuously increasing their investment and attention in the Chinese market.
The products brought by international commercial vehicle companies at this year's Shanghai Auto Show are showing characteristics that are closer to the needs of the Chinese market, and some of them are products that have undergone adaptive improvement and meet the requirements of China's emission standards and will soon be put on the market.
Daimler Trucks (China) Co., Ltd. has set up an operation center in China even though there are no new products for Daimler-Benz trucks. It is reported that the new company was formally put into operation on April 1, 2013.
“Daimler Bus (China) Co., Ltd. will expand the foundation for the future business of Mercedes-Benz trucks and further enrich the product range of commercial vehicles in China, such as the introduction of Mercedes-Benz passenger car products.†Daimlerka Robert Buster (China) Co., Ltd. president and chief executive officer said.
The release of numerous new products and the planning of their strategies all reflect the desire of international commercial vehicle companies for the Chinese commercial vehicle market. For the future of multinational companies in the Chinese market, they are full of confidence. Robert said, “At present, China is the third largest import market for Mercedes-Benz trucks in the world, with sales volume equal to the major European markets. We believe that in 2013, especially in the second half of the year, China’s heavy truck market will pick up. With the market With the gradual recovery, our leading position in the high-end imported truck market will also be further consolidated."
At the same time, Dong Chenrui, president of Commercial Vehicle Trading (China) Co., Ltd., also stated that in recent years, sales in China's low-end car market have been declining year by year, and price competition has become more intense. However, the sales growth of mid-range and high-end models is very fast, and imported vehicles are also growing. These are changing with the changes in the Chinese market. He is more optimistic about the high-end market.
He Mochi, executive director of the Scania China Strategic Center, also expressed his confidence in China's economic development and the Chinese market.