In recent days, Jianghuai Automobile Co., Ltd. from Anhui Province has reported that the production and sales of Jianghuai light trucks exceeded 100,000 units in January-October, completing the full-year production and sales targets for 2006. It is estimated that sales volume of Jianghuai light trucks will increase by about 20% year-on-year in 2006, and sales volume will exceed 110,000.
While gaining a good performance in the domestic market, JAC Light Trucks also achieved good results in overseas markets. At the Canton Fair on October 16, Jianghuai Automobile held the “JAC Internationalization Strategy and Export Product Launch Conferenceâ€. It announced that over 7,000 light trucks have been exported from January to September 2006. It is expected that exports will exceed 10,000 for the whole year. Vehicle. In the current situation of the young card industry declining, the domestic and foreign markets of Jianghuai Light-duty Cards are all in the red, which contrasts sharply with the sluggish domestic market environment.
Rising costs lead to further consolidation of reshuffle in the industry
It is an indisputable fact that the profits of light trucks are very thin. However, the increase in the prices of raw materials in the past two years has made light trucks' profit margins even thinner. Since last year, the price of steel in China has been showing a rising trend. This year, Baosteel, Maanshan Iron and Anshan Iron and Steel also announced adjustments in the price of steel products. The price of most products has risen rapidly. Similarly, domestic crude oil prices have continued to rise in line with international trends. Under such circumstances, rubber companies that rely on the survival of crude oil will inevitably face enormous cost pressures, and this pressure will inevitably be transmitted to light-duty truck companies.
The impact of policies such as emissions and overload inspections is even more self-evident. One of the reasons for this young card market's decline is due to the early implementation of Euro III emissions. The increase in product prices caused by the increase in costs caused the sincere and fearful light truck market to face a cold spell again. Many light truck manufacturers have to bid farewell to Beijing and Guangzhou. These two important markets.
Contrary to this, the competitive mechanism of survival of the fittest has led to a further increase in the concentration of light-duty trucks. At the same time as the decline of small and medium-sized enterprises, some oligopolistic market shares have risen. The current market share of light trucks led by Jianghuai, Futian, and Dongfeng has reached 55%, which is higher than the same period last year.
Judging from the pace of development, the development momentum of JAC light trucks in recent years cannot be underestimated. JAC has gradually accumulated its products and brand status since it began to enter the light truck industry in the mid-1990s. By the beginning of the 21st century, the product and brand advantages accumulated by JAC's light trucks for many years also exerted their effects. The company has achieved rapid growth for six consecutive years, successfully squeezed the top three in the industry, and became the first camp in the industry with Futian and Dongfeng.
Product wins market Technology wins opportunity
In 2005, after Jianghuai's profit growth rate of 27.63% became the only company that maintained positive profit growth among the 14 key auto companies in China last year; this year from January to September, under the situation that the overall growth of the commercial vehicle industry slowed down this year, Jianghuai Automobile Continued steady growth, with the growth rate of light trucks reaching 15.3%, which is much higher than the industry's growth rate of 10%, becoming the bright spot of the young card industry.
Tao Chi, deputy general manager of JAC truck sales company, said in an exclusive interview with reporters: “The good performance of JAC has benefited from excellent product quality. Over the years, JAC has always taken product quality as the best marketing tool and strived to increase consumption from all aspects. The satisfaction of the product is also precisely because of this, the JAC light truck can maintain the 53% repurchase rate ahead of the industry."
This year, Jianghuai Light Truck Co., Ltd. has improved its product competitiveness in the market by continuously improving product design, research and development of new products, and improving the quality of its products. It has promoted lean marketing with a new product lineup and has gained favor from many parties. In response to this year's rise in oil prices, Jianghuai focused on R&D. The newly launched Jun Bell II and Shuai Ling II products are mainly driven by power and fuel economy, which is very much in line with the market environment. The products are immediately sought after by consumers. Its excellent quality has also attracted the attention of the National Assembly Department and some large-scale enterprises and institutions, which has helped the sales of JAC light trucks this year.
JAC light trucks have always been known for their cost performance. In response to this year's rise in raw material costs, Jiang Qi started with internal management and integrated resources to achieve a rational allocation of resources. At the beginning of this year, Jianghuai Automobile experienced the largest restructuring of its corporate structure in 40 years since its establishment. It has set up a light truck marketing center. The adjusted Jianghuai automobile resources have been further optimized. The reduction in management costs has also made the cost of products more competitive.
Another weapon that Jianghuai Light Truck can develop steadily is strong R&D strength. This makes JAC Light Trucks always maintain its leading edge in the changing market. According to Liu Yong, Jianghuai Light Truck Marketing Center, in order to maintain a continuous research and development reserve, JAC currently owns the Shanghai Tongji JAC R&D Center and JAC Engineering Automotive Research Institute; and it has established the JAC Italian R&D Center in Turin, JAC Japan Institute. It is also under construction. At the same time, JAC also attaches great importance to the introduction and training of talents. At present, JAC has introduced experts from many countries, such as Britain, Japan, and South Korea, to serve as academic leaders to guide the cultivation of reserve talents.
At the beginning of this year, Beijing implemented the Euro III emission in advance, which brought a big blow to the light-duty card market in Beijing at that time. At one point in the Beijing market, there was a phenomenon of no cars in the city. In this case, Jianghuai quickly launched the V-Euro III, and the European-European V-Necklace went on the market, immediately attracting many consumers who hold money purchasing and seizing the opportunity in the Beijing City Market. Performance has become the best-selling Euro III light truck product on the Beijing market.
Mature products coupled with leading technologies have enabled JAC's light trucks to maintain a high growth rate under the conditions where other manufacturers do not receive green light, transforming them into opportunities and effectively expanding their market share. As the light-duty truck market has matured, the role of price warfare and sales promotion has gradually been attenuated. In order to truly win the trust of users, the quality of products has become a core factor that has impressed users.
At the same time, the development of the domestic light truck market is increasingly rational in terms of price, quality and core competitiveness. However, the continuous rise of raw materials and oil prices has led to a further decline in the already thin profits. Without scale development, it will be a severe challenge for some companies. Therefore, while striving to improve product quality, companies must face the issue of digesting costs and how to deal with the challenges posed by the policy environment, so that the development of light trucks to a more rational direction.
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