China's commercial vehicle market is maturing


At the Beijing Auto Show, the last major event of this year's auto industry, there are no well-known commercial vehicle companies including Yutong, Jinlong, Sinotruk, and Shaanxi Auto. The person in charge of the exhibition stated that there will be no dedicated commercial vehicle exhibition area at this exhibition.

Why are domestic commercial vehicle companies affected by this "cold encounter"? The explanation given by the organizer of the exhibition is that the number of auto exhibitors participating in this auto show has increased dramatically and the venue resources are limited. A commercial vehicle company official told reporters that there is no venue is only one reason, in fact, many manufacturers are actively proposed not to participate in the exhibition. He explained that according to the experience of previous years' participation, in this large-scale comprehensive auto show, the attention of cars is much higher than that of commercial vehicles. The display effect of commercial vehicles is not as good as that of some smaller but more targeted ones. The professional commercial vehicle show, so many manufacturers have chosen to take the initiative to exit instead of following the show.

The collective absence of China's commercial vehicle companies at this auto show does not mean that the role of commercial vehicles in the domestic auto industry has declined. In fact, the overall relatively stable market performance in recent years shows that China's commercial vehicle market has gradually entered a relatively mature period of development.

Optimize the development of the automotive industry

In recent years, with the continuous growth of China’s national economy and the gradual increase in personal income levels, the consumer demand for automobiles has shifted to the private car market, and the structure of China’s automobile industry has also undergone significant changes: passenger cars, especially cars, are in the automotive market. The proportion of China's medium-sized vehicles gradually increases, and the proportion of commercial vehicles is relatively narrow. However, the commercial vehicle industry has always had a vast development base in China. The large demand for passenger flow, logistics, and engineering construction has enabled commercial vehicle sales to maintain a relatively constant market share.

Statistics from the China Automobile Association show that in 2005 China's auto production and sales totaled 5,077,700 and 5,758,200, of which 1.77 million and 1.817 million were commercial vehicles, which accounted for 31.13% and 31.04% of the total automobile production and sales, respectively; In October, China’s total automobile production and sales volume was 58..110,000 units and 5,768,800 units, of which commercial vehicle production and sales also reached 1.657 million units and 1.654 million units, which still maintained a market share of 28.27% and 28.70%, and achieved The year-on-year increase of 13.60% and 12.92%.

At present, the market share of commercial vehicles has basically stabilized at about 30% of the domestic automobile market. This change shows that the commercial vehicle market has transitioned from the ultra-fast growth phase of the past few years to a steady growth phase. At the same time, the proportion of commercial vehicles in the Chinese automobile industry has become more rationalized, which has prompted the overall healthy development of the Chinese automobile industry.

The mainstay of car exports

In the export of automobile products in China, the export of commercial vehicles has always occupied a dominant position. According to the China Automobile Association, in the first three quarters of 2006, China's total vehicle export (including chassis) reached 252,300 units, an increase of 1.1 times year-on-year; foreign exchange earned through exports was US$2.213 billion, more than doubled from the same period of last year, of which commercial vehicles exported a total of 139,900. Vehicles, accounting for 52.28% of total exports. In the first three quarters of this year, China exported 113,500 trucks, an increase of 54.27% year-on-year; foreign exchange earnings reached US$703 million, an increase of 49.68% year-on-year. The number of passenger cars exported was 18,400, an increase of 1.1 times year-on-year; foreign exchange earned 372 million U.S. dollars, an increase of 1.4 times year-on-year.

At present, in terms of exports, China’s commercial vehicles have formed unique advantages, among which the export of truck-loaded products is the most representative. As industry experts say, the trend of China’s equipment to meet the global low-end market has been basically established. China's light trucks, medium- and heavy-duty trucks and other products are based on a large domestic market, far lower than the prices of developed country products, and have obvious cost-effective advantages in meeting the needs of developing countries in the world.

Through the development in recent years, the export of light and mini trucks in China has become the main force of China’s auto exports. The export target markets have already covered Russia, the Middle East, Southeast Asia, North Africa, West Africa, Central and South America and many other countries and regions. A single vehicle product export gradually developed into a diversified export combined with KD spare parts export, technical output and capital output.

From low-end to high-end international strategy

According to professional analysis, the market for commercial vehicles in China is maturing, and market share will remain stable in the next few years. Production and sales volume will continue to increase slightly. In this relatively stable market structure, domestic commercial vehicle companies will face two kinds of development opportunities: one is the consumption upgrade of domestic users, and the other is the further development of overseas high-end markets.

The above two options put forward a common requirement for China's commercial vehicle companies, that is, to improve the product's technical level and product quality. Although China’s commercial vehicle companies have done little to open up overseas markets, they have mainly used the advantage of cost-effectiveness to open the market; there is still a big gap between the product quality and technical content and the commercial vehicle companies in developed countries, so it is difficult to enter the market in Europe and America. High-end commercial vehicle market. Similarly, when domestic users need to upgrade, imported brands will threaten local brands with the advantage of product technology quality.

In response to this urgent problem, many domestic commercial vehicle companies have already improved their technical quality through various methods such as the introduction of technology, joint ventures, and independent development. Domestic commercial vehicles move from low-end to high-end, which is not only a strategic precondition for entering the international market, but also a road in line with the direction of industrial development.

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