How Chinese Truck Companies Win in the Future


Most of the passenger car market is divided by foreign brands. In China's commercial vehicle market, truck independent brands have always occupied a strong position. According to the data from the China Automobile Engineering Society, in 2006 in the field of commercial vehicles, the market share of China's own brands exceeded 90%, of which self-owned brands accounted for 94.2%.

But industry experts believe that leading sales does not mean that our truck companies have the strength to lead their foreign counterparts. It is undeniable that China’s national conditions and policies make foreign truck companies unacceptable in China. However, the market is constantly changing, and we have reason to believe that the multinational truck giants will gradually adapt to China's environment. Once that happens, China's own truck brands may face a fiercer shock than now. Therefore, before the crisis comes, Chinese truck companies should think longer.

Since China's first batch of trucks went offline in 1956, it has been calculated that China's commercial vehicles, including the heavy-duty truck industry, have had a history of more than 50 years. Over the past 50 years, we have created a number of powerful truck companies like Jiefang, Dongfeng, and China National Heavy Duty Truck. Our business is large enough and the domestic market also takes full advantage. However, we must admit that our business is not strong enough and the technology content is still relatively low. We can hardly adapt to changes in the future market simply because of the inexpensive and powerful after-sales service network.

There are indications that the formulation of China's commercial vehicle industry policy will increasingly move closer to European standards. At present, the national III emission standard is already equal to the Euro III emission standard, and Beijing will implement the national IV standard next year. In addition, the development of China’s safety regulations based on European automotive safety standards is also under discussion.

Relevant information shows that during the "Eleventh Five-Year Plan" period, the state will formulate the promulgation of "commercial vehicle occupant protection" and "commercial vehicle front lower protection device". These two standards are directly related to the safety of commercial vehicle cabs. In the context of the country's advocacy for energy-saving and emission-reduction, it is also a trend to give priority to supporting the development of energy-saving and environmental protection models through taxation and other economic measures. At the 2007 China Automotive Industry Development International Forum held in Tianjin recently, the Director of the Taxation Department of the Ministry of Finance stated that in order to curb the development of high-emission vehicles, the Ministry of Finance is accelerating the feasibility study on the introduction of environmental taxes. After the introduction of new policies, whether products can meet the prescribed standards will directly affect the survival of truck companies.

At the same time, with the rapid economic development, the purchasing power of users has also been greatly improved. In addition to the improvement of transportation levels and transportation environment and the gradual establishment of a modern logistics system, there are currently signs of market development. The product structure focusing on low-end trucks has been Can not meet the needs of the market, while heavy-duty, high-performance, high-tech performance of high-end heavy truck products, the market demand is increasing. According to the latest statistics from the China Association of Automobile Manufacturers, in the domestic truck market demand in the first half of 2007, heavy trucks (with a total mass of over 8 tons) have become the fastest growing market segments. According to forecasts by foreign institutions, in the next three to five years, the intensive demand for the heavy-duty truck market in China will surely be even stronger. By 2010, heavy-duty trucks with more than 15 tons will reach 70% of the Chinese truck market.

However, the production of domestic high-end, high-tonnage trucks is still at the initial stage. About 97% of domestic trucks are still at the low-end level. Existing domestic high-end heavy truck manufacturers also have a large gap with their foreign counterparts in terms of quality, technology, and R&D investment. For example, fuel economy, emissions technology, and cab safety are still far from the world's advanced standards and future national standards. At present, heavy trucks that can meet the National IV emission standards or heavy trucks that use liquefied natural gas as fuel are still difficult to produce for most domestic enterprises. European trucks, which represent the most advanced environmental technologies, not only meet Euro IV and Euro V emission standards, but also shake the lead in mixed fuels.

When many domestic truck manufacturers are fortunate to meet Euro III standards, Volvo has launched a zero-emission eco-friendly truck and transformed its factory into the world's first truly CO2 zero-emissions plant. In terms of safety, the world's most advanced truck companies, represented by Volvo and Scania, have adopted the extremely high safety keel structure in the cab of their trucks, and have been recognized as the most stringent in the world by their counterparts in Sweden. The cab strength and safety test cost as much as 100 million yuan.

Some industry experts believe that the advanced technology revolution in the global automotive industry will be completed in the next 20-25 years, so the time left for Chinese truck companies is running out. If China's trucking companies cannot pay attention to technological breakthroughs in the future, it means that once the new mandatory standards are introduced, we will not only lose the international market because of new standards, but will also surrender the domestic market.



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