Luo Donghai: Low and high before heavy truck market in 2014

On December 27, 2013, the XCMG Automotive 2014 Business Conference with the theme of “Discovering the Power of Integration and Winning Sales in 2014” was held in Wuxi, Jiangsu. After the meeting, Luo Donghai, party secretary and general manager of Nanjing Xugong Automobile Manufacturing Co., Ltd., was interviewed by the reporter. He believes that the overall market trend for heavy trucks next year will show a trend of low growth and high growth. The annual sales of heavy trucks are basically the same as in 2013. Among them, the proportion of construction vehicles, special vehicles, and natural gas products required for urbanization will increase slightly, and small tonnage trucks and high-powered tractors in the field of logistics vehicles will account for the mainstream development trend.

Luo Donghai introduced that in 2013, Xugong’s auto sales revenue reached 1.5 billion yuan, an increase of 50% year-on-year, and successfully completed its strategic goal of turning deficits into profits. In 2014, as the starting point for the second five-year period, Xugong Automobile will focus on gathering momentum and speeding up development. The annual budget sales revenue was 2.1 billion, and heavy truck sales exceeded 6,000 units.

As a new force in the heavy truck industry, XCMG has developed rapidly in product development for five years, and in 2013, it has launched the upgraded Xiaolong T platform high-powered trucks, dump trucks, concrete mixer trucks and other products. The new T series products have been greatly improved in handling, bearing capacity, power matching, comfort, vehicle reliability, and early failure rate, making them more suitable for a variety of complex working conditions and operating environments.

According to Luo Donghai, before the end of 2014, Xugong Motor Co., Ltd. will form a diversified and three-dimensional product structure differentiated by Z series, K series, T series, and a new generation of products, featuring low, medium, and high distribution, and expand its user base. For the company's product selection space.

As the star product of the company, the mine card will also continue to enhance and consolidate its core technological advantages and rapidly open the safety distance from other competitors in the industry. Strengthen the technical strength and technological accumulation of industry leaders. Participate in defining industry standards. In 2014, the company plans to develop new products such as 2.5m head and narrow body class card, 8*4 wide body mine card and natural gas mine card on the existing non-road mining dump truck product platform. Strive to make XCMG non-road mining dump trucks the first choice brand with the widest platform, best performance, and best reliability in the industry.

In terms of after-sales service, with the increase in the sales ratio of Xugong Construction Vehicles, in 2013, it was centered on the idea of ​​creating “XU Gong conditions and days down”. XCMG's focus is on building a spare parts center library and improving its service system. The construction of the regional spare parts center warehouse was completed in Qinghai, Inner Mongolia, Shanxi, Henan, Guizhou, and Guangdong. Combining the characteristics of the use of construction vehicles and special vehicles, the implementation of resident service work in areas where the use of vehicles is relatively concentrated has improved service efficiency.

In the whole year, the company built and put into operation 7 spare parts center warehouses, 12 overseas spare parts points, added 35 special spare parts center points, and the total number has reached 54; and 80 special service stations have been newly established, and the total number has reached 567. Realized that in the hotspots of sales, 100 km of service coverage was basically achieved. Gradually, a three-level spare part support system with spare parts center library, spare parts distributors, and special service providers will be gradually formed. Service satisfaction rate reached more than 91%. At the same time, special service stations with stronger comprehensive strength were promoted, and major supporting manufacturers such as Weichai, Fast, and Shangchai were concurrently served. A one-stop service model was implemented. A total of 53 service stations formed a one-stop service station throughout the year.

Luo Donghai believes that due to the impact of the macro-environment in 2013, China's heavy-duty truck industry experienced significant changes in the sales situation in the first half of the year compared with previous years, not only the decline in the growth rate but also the decline in the absolute amount; Afterwards, with many variable factors gradually shifting away from each other, the market has shown rapid recovery. It is estimated that the total heavy truck sales this year will be around 700,000 units, up 15% year-on-year.

It is expected that the overall market trend of heavy trucks will show a trend of low growth and high growth in the next year. The annual sales volume of heavy trucks is basically the same as in 2013. Among them, the proportion of construction vehicles, special vehicles, and natural gas products required for urbanization will increase slightly, and small tonnage trucks and high-powered tractors in the field of logistics vehicles will account for the mainstream development trend.

Luo Donghai finally told the reporter of the China Commercial Vehicles Network. Looking at the development of the industry in recent years, various signs indicate that the heavy truck market in China is gradually entering a market under the influence of policies, economy, environmental protection and other factors. During the structural adjustment period of the product, the development of the heavy truck market will gradually tend to be gentle in the coming years. Competition in the industry will become increasingly fierce.


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