Dongfeng has limited power to build a 10% share of light vehicle Zhonggongcun


After a few years away from the light truck market championship, Dongfeng Motor Co., Ltd. (hereinafter referred to as Dongfeng Limited) is currently working on “correction” of Dongfeng’s limited growth trajectory and plans to use it in this market.

Right now, Dongfeng Limited's various business segments are uneven - the heavy truck business has taken the lead, while the light commercial vehicle segment dominated by Dongfeng Motor Co., Ltd. (hereinafter referred to as Dongfeng Motor, 600006, SH) has continued to decline.

Dongfeng Motor Financial Report showed that in 2012, operating income was 17.7 billion yuan, a year-on-year decrease of 17.26%; net profit attributable to shareholders of listed companies was 21.7332 million yuan, down 94.82% year-on-year. In the first half of this year, the company’s net profit is expected to decline by more than 50% year-on-year.

At the same time, under the pressure of rivals such as Jianghuai Automobile and Jinbei Automobile, the status of Dongfeng Motor has been shaken. According to the China Automotive Industry Information Network, in April, May and June of this year, the industry rankings of Dongfeng Motor's light truck business were third, fourth and second, respectively; and a few years ago, its industry status was always firmly in second place.

Nakamura Gongtai clearly knows that only by maintaining a balanced development of all sectors can we go more steadily. Dongfeng Limited plans to increase its sales volume to 2.3 million units in the next two years, and its domestic market share will increase from the current 7.07% to 10%.

In January of this year, Dongfeng Limited announced that it will spin off its medium and heavy truck business. As a result, Dongfeng’s limited business strategy has shifted to two-wheel drive, namely, the passenger vehicle segment dominated by Dongfeng Nissan and the light commercial vehicle segment dominated by Dongfeng Nissan.

However, for the market performance of the two companies, Nongcun Gongtai was unsatisfied. He gave each of the two businesses a score of 80. In his opinion, “the passenger car segment entering the top three in the industry, and the light commercial vehicle segment entering the top two in the industry” is the key to whether or not the short board can be completed.

Nakamura hits the latter's focus on the latter. In this regard, he gives the reason is, compared to the passenger car plate that has entered the normal track, light commercial vehicles also need to give key support.

“The performance of the light commercial vehicle in 2012 is not satisfactory. This is not the strength that the stock company should have, so my next major focus will be on the joint stock company.” Nakamura Hiroshi told reporters, “We will dispatch from Nissan. Staff and import management methods and management tools."

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