According to the latest production and sales data from the China Association of Automobile Manufacturers, between January and May, production and sales of heavy trucks were 256,600 units and 245,200 units, down 34% and 32.88% year-on-year, which meant that the downturn in the domestic heavy truck market continued. Many industry insiders have conservatively predicted that the total sales volume of heavy trucks in 2015 will be estimated at 600,000 units, which is a drop of about 20% compared with the sales volume of 740,000 vehicles last year.
　　
In the face of the sluggish domestic heavy truck market, more heavy truck companies have turned their sights overseas. Exporting overseas is not only a manifestation of the internationalization of the company, but also an important path for the former truck companies to face difficulties and break through. "The sales of heavy trucks this year have fallen from last year, and it has already become a foregone conclusion. Going out is a road to breaking out." According to Tan Xiuqing, a senior industry observer.
Many high uncertainties in export bike profits
“In the past, the total number of vehicles exported could account for 1/3 of the company's total sales, and the profit contribution rate could reach 50%.†Zhang Haigang, deputy general manager of Shaanxi Auto Import and Export Corporation, expressed this to the reporter. It is not difficult to see that the profit rate of bicycles for export vehicles is usually higher than that of the domestic market, which is why an increasing number of heavy truck companies are exporting this route. This is an important reason that they can “gold rushâ€.
“Because the major areas for China's heavy truck exports are in the Asia-Africa region, the threshold for these regional markets is generally low, so there are more domestic truck brands entering the market and competition is fiercer. The profit rate of bicycles has declined compared to previous years. "Cai Huashan, Vice Minister of Overseas Markets of Valin Automobile said. According to the reporter’s understanding, changes in regulations and currency exchange rates in overseas countries are also major problems encountered in the current heavy truck exports. As Rui Yi, deputy general manager of Tianjin Jinhuai Commerce & Trade Co., Ltd. puts it: “The market performance of heavy-duty truck exports is based on the score.â€
Exports, on the one hand, are an important path sought by all companies in the downturn of the domestic market. On the other hand, they also face so many challenges and risks. What can companies do to achieve gold rush overseas in the context of domestic sales falling by 30%? dream?
The domestic market is sluggish, and the export news is unceasing
The continued decline in the domestic heavy truck sales market seems to have become a foregone conclusion. According to the data released by the China Association of Automobile Manufacturers, in May, the production and sales of heavy trucks were 49,000 units and 51,700 units, which was a decrease of 6.9% and 11.92% from the previous period and a decrease of 35.32% and 30.16% year-on-year. It is reported that January-May heavy truck sales fell 32.88%.
Although the overall sales of commercial vehicle exports are also falling, the decline is smaller. In terms of heavy truck exports, although there have been some degrees of decline in companies from January to May, as Zhang Haigang said: “Because of the early implementation of the policies and regulations of a certain country in Africa, there are currently more than 2,000 vehicles that have not yet been unloaded. A sudden cause of the current export volume has decreased compared to the same period of last year. In addition, Zhang Haigang is optimistic about the overseas export market in the second half of the year. One of the recent overseas export orders of Shaanxi Auto is the export of 18 custom-built bias dock tractors to South Korea. It is reported that from January to May, Shaanxi Automobile's exports amounted to approximately 2,300 vehicles, and the target for export at the beginning of the year was 18,000 vehicles.
In addition, according to the reporter’s understanding, in May, China’s heavy-duty trucks exported a large number of successful reports, among which the African Department of China National Heavy Duty Truck (Hong Kong) Co., Ltd. received good news and received a large number of 1,550 tractors, including 1,550 vehicles. trailer. According to Li Lixian, general manager of China National Heavy Duty Truck Tai'an Wuyue Special Purpose Vehicle Co., Ltd., “The reason why the trailer of its brand can achieve a major breakthrough in exports is mainly relying on the layout of the Group’s overseas sales and service network.†It is reported that China The team of Vapor Africa Department has been deeply cultivating the market to create the first position in the African market for heavy truck brands in China. In 2014, it also created a brilliant performance that exceeded 10,000 vehicles in Africa throughout the year.
The Chinese brands such as FAW Jiefang, Dongfeng Commercial Vehicles, Dayun and Hualing have also achieved a good market performance in overseas markets. It is worth mentioning that China's truck exports are mainly concentrated in Africa, South America, Southeast Asia, Russia and other resources, mineral-based countries.
One fish to eat, the export also has "a university asks"
China’s heavy trucks are mainly exported to Asia, Africa and Latin America. Many countries in these regions have one thing in common: The country’s main fiscal revenue depends on oil. “The wealth of these countries has come more quickly, and the infrastructure has been invested more quickly and with greater intensity. In recent years, the trucks in China have also exported well in these areas.†Zhang Haigang analyzed.
However, sales of Chinese-branded commercial vehicles (including trucks and passenger cars) in overseas markets have generally declined this year, mainly due to the continuous decline in international crude oil prices and exchange rate changes. Zhang Haigang cited the reporter as an example. In Africa and Angola, the shortage of foreign exchange is very serious. When the official exchange rate of the US dollar to Kwanza (Angola currency) is 1:12, it can only be bought at 1:192 on the black market due to tight foreign exchange. “This is basically a 40% discount, which has caused a lot of troubles. The recovery of payment for goods has encountered great risks.†In short, the layout characteristics of Chinese trucks in overseas markets have a greater impact on truck exports.
In addition, Chinese car companies are fiercely competitive in overseas markets and have almost reached "white fever." This has led to a reduction in the profit rate of bicycles for export vehicles in the competition. In the face of such a complicated overseas market, how will Chinese companies respond?
“Cycle profitability has been relatively good in previous years. With more and more companies aiming to target overseas, the current price war is more obvious, and the sales price has shown a downward trend.†Zhang Haigang said, “We are also pondering. Approach and consider transition."
According to reports, the sales model in overseas markets can be changed and it can be "a fish to eat more." "Not only sales, but also after-sales service, parts, recycling and other areas can also gradually try." It is reported that Chinese brands of trucks in the overseas market gradually climbed up, there is a basis for the conditions in the auto market to make a fuss.
In addition, taking Shaanxi Auto as an example, its business model is gradually shifting from simple general trade to the assembly of SKD/CKD, technology transfer, and to the transformation of a comprehensive localization model, namely, localization; truck companies can also borrow ships to sail to the sea, relying on CITIC. Construction, China Railway Group, China Railway Construction, China Construction, AVIC International, China Communications Group and other large state-owned construction companies use heavy-duty trucks as their carrier to tailor logistics solutions for overseas projects.
It is necessary to establish a competitive order in overseas markets
In the process of “going out†by Chinese truck companies, such as unstable political and economic development in export regions, trade protectionism, tariff and non-tariff trade barriers, and imperfect laws and regulations, they are considered to be objective and uncontrollable factors. The lack of corresponding regulatory mechanisms has caused our country's heavy-duty truck companies to have unorderly vicious competition in the export prices. This controllable factor should be worthy of our reflection.
"Disorderly competition and price wars have caused China's heavy-duty truck exports to be at a low level in terms of product level, business policies, and after-sales services. This not only hinders the sound export of China's heavy-duty truck products, but also hurts China's heavy-duty truck products. The overall image of the international community." Shaanxi Automobile related personnel think so.
"For the order of competition in overseas markets, we have to make a truce. It is simply an internal fight," said Cui Huashan. It is reported that in some regions of Asia, Africa and Latin America, the economy is underdeveloped and the access threshold for imported products is relatively low, resulting in a phenomenon in which a large number of Chinese brand truck companies flock overseas. “For some areas with higher entry barriers, the market environment is better due to fewer auto enters, and the profit margin of bicycles is also relatively high,†said a salesman of a truck brand overseas marketing department.
In fact, not only trucks, but also passenger cars encountered such a situation at the time of export. Just as Du Fangci, a senior industry expert, once stated to reporters: The unbalanced environment in overseas markets, one of the most fundamental reasons, is the manifestation of the overall quality of the company is not high. In this regard, Valerie Xingma Chairman Liu Hanru once said that perhaps the lessons are profound and the export order will become better. I hope not to have a painful lesson to think of order.
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