Commercial Vehicles: Structural Adjustment Has Not Got High


Some experts pointed out that “the next two to three years will be the peak period for the survival of the fittest in the domestic auto market. China’s auto industry is entering an era of “all-round reshuffling”.” This remark about the competitive situation in China’s auto industry has aroused widespread concern in the industry. Whether China's auto industry can achieve the survival of the fittest within two to three years and complete the industrial restructuring of the auto industry as soon as possible, this newspaper will discuss the topic of the passenger car and commercial vehicle industry respectively.

Judging from the current overall situation of the commercial vehicle industry, in the next two to three years, the peak period of survival of the fittest in the commercial vehicle industry will not come. Some enterprises with differentiated advantages still have development opportunities.

Compared with passenger vehicles, commercial vehicles, which are production materials, are more affected by macroeconomic policies and external environmental factors. Therefore, the market is also prone to fluctuations. In recent years, the development of the commercial vehicle industry has confirmed this.

Before 2005, China's commercial vehicle industry has been showing rapid development. Statistics from the National Information Center show that during the eight years from 1997 to 2004, the average annual increase in the sales of commercial vehicles in China was as high as 10.5%, of which the annual increase of heavy trucks reached 36.5%. However, in 2005, the high-speed growth of the commercial vehicle industry has abruptly halted for many years. Commercial vehicle sales in 2005 were 1,781,100 units, a year-on-year decrease of 0.75%. Sales of trucks, passenger cars, and other sub-sectors have significant sales. Decline. Although the sales volume of commercial vehicles this year has increased, compared with the rapid growth of previous years, the growth rate of the commercial vehicle sector has obviously slowed down.

In this situation, the profits of commercial vehicle companies have also shrunk dramatically. The reporter learned from the survey of profits of listed companies in 10 commercial vehicles in the past two years that only Sinotruk, Jiangling, and Hebei Chang'an's profits were able to grow last year, and the profits of the other seven companies fell sharply year-on-year. This year, although the profits of these commercial vehicle companies have increased in comparison, the profit margin is generally low.

For commercial vehicle companies, the slowdown in growth and the dilution of profits have begun to show. A commercial vehicle company official stated that the adjustment of the country’s economic policies, the further tightening of environmental protection laws, and the increase in raw material prices are the main reasons for the decline in sales and profits of the commercial vehicle industry and a significant increase in production costs.

According to a person from the China Association of Automobile Manufacturers, the production and sales volume of large-scale commercial vehicle manufacturers such as Foton, Dongfeng, and FAW have already accounted for more than 70% of the total production and sales volume of commercial vehicles, of which 60% of the market is even more a few. Occupied by a commercial vehicle company.

Under the influence of macroeconomic policies and the external environment, the advantages of large-scale commercial vehicle companies have become more prominent. “In the field of commercial vehicles, innovation is the most fundamental way to achieve breakthroughs. Large-scale commercial vehicle companies not only have the strength to innovate, but after so many years of efforts, they have formed a set of relatively innovative mechanisms, which allows large commercial vehicle companies. The advantage in the competition is extremely obvious." A person from Foton said proudly. According to reports, large commercial vehicle companies are far ahead of other commercial vehicle companies in terms of profitability, management level, and added value of cost control and products. This has led to an increase in the number of strong players in the commercial vehicle sector.

In spite of this, the structure of China's commercial vehicle market is still very different from that of foreign mature structures, and there are many gaps that can be drilled. In the highly competitive commercial vehicle market, Zhejiang Youth Group is still crowding into the field of passenger car production, and is still negotiating cooperation with foreign auto companies. Zhongshun Automobile, which has developed in recent years, has also shown an upward trend and frequently exports information. From this point of view, although the growth of the commercial vehicle industry has slowed down and profits have been diluted, there are opportunities for the development of new and small enterprises. Some experts believe that due to the inertia inherent in this particularity, the possibility of major adjustments in the structure of commercial vehicles within two to three years is unlikely.




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