In the automotive industry, "Blue Ocean" is still common, and those commercial vehicle companies that have switched to a sedan should choose the route that best suits them before they can fight in the seas.
The tide of layman repairs has not yet subsided. There are several domestic commercial vehicle companies that have begun to use the idea of ​​a car market.
Among them, there is the “leading leader†JAC of the bus industry, Fukuda, who has won the first place in the light truck industry, Jiangling, which has made great achievements in the MPV market, and the Great Wall, the “leader†of the economical SUV. These time-honored commercial vehicle companies either realized that their original areas had little potential for development or that they had to expand into the car market because of the need for strategic expansion, and began to redesign their own future. Even if the tide of the “sweeping blowout†in the car market has gone and the price war has intensified, they are not afraid. The reason is that this market still has money to make. In the view of these companies, commercial vehicles are used as production tools. Buyers need to calculate input-output ratios, which are investment behaviors and have little potential for development. Cars, however, are consumer goods and have more lucrative profits. They have great potential to dig. Commercial vehicles are "fat and fat" and natural oil and water are essential. If so?
Not long ago, it was reported that the JAC Group's sedan project had been approved by the National Development and Reform Commission. This commercial vehicle company with its unique advantages in heavy trucks, MPVs, and passenger car chassis has spent several years of hard work in entering the car market. Now it has finally got its wish. It is understood that Jianghuai Car Base is located in Hefei, with an annual design capacity of 300,000 vehicles. The mid-range sedan will be its market entry point. At the same time, the car will adopt a new brand instead of using the "JAC" brand of commercial vehicles.
Coincided with it, Beiqi Foton, known as the "China's No. 1 commercial vehicle company," started research on the feasibility of the car as early as three or four years ago. At present, it has formulated a clear car development strategy. It has been revealed that its flagship product will be an economical car with a value of less than 70,000 yuan. The leadership of Beiqi Futian believes that large multinational corporations are basically taking the entire series of product development routes. Beiqi Foton wants to be a global company and it is natural to produce cars.
In the field of MPV and SUV, there are also many manufacturers intend to enter the field of cars. Among them, the Jiangling sedan project has been nailed. Its car production base is located in the Xiaolan Industrial Park, Nanchang, and the target output is 100,000 vehicles. The first car will go offline in September this year. Its brand will be placed in the land wind system and its price will be located within 100,000 yuan. Great Wall Motors has also made preparations for the transition. At present, it has built a production base for passenger cars with a production capacity of 200,000. It will put two cars of 1.0-liter and 1.6-liter at the end of the year. It is understood that the Great Wall will make a fuss about the displacement range of 1.0 to 2.0 liters in the future, and will use economic vehicles and mid-range vehicles together.
There is also a need to join the mid-range car camp, but also to bring out a world in the economy car market. These commercial vehicle companies do not do the “boss†of the original field, but they have to squeeze into the dominating sedan market. If this happened in 2002, their actions are very easy to understand. In that “blowout†era, entering the car market was to grab profits. Car sales are due to insufficient competition and consumers are not smart enough. Today's price war is like floods and beasts, manufacturers are extremely afraid, but have to face it calmly; consumers are not allowed to leave the manufacturers as before, and they know how to bargain and shop around. According to statistics, the average profit of the auto industry in 2005 was only 4%, even lower than the overall level of domestic manufacturing. In this situation, commercial vehicle companies have entered the car market one after another and are bound to take enormous risks.
In response to the overcapacity in the automotive industry, the state has very clear regulations in promoting industrial restructuring and requires that “all newly-built automobile manufacturers and existing enterprises cross-product categories of production investment projects, in addition to meeting industrial policy requirements, It is necessary to satisfy the conditions for independent brands and self-developed products." The shift of commercial vehicle companies to cars is a "cross-product production investment project," so they can't choose joint venture partners at least at this stage. Whether or not their own R&D products can be recognized by consumers is also a problem.
For this, the position of these companies is the same: to resolutely fulfill their commitments and develop their own branded car products. Zuo Yanan, chairman of JAC Group, said that JAC has decided to invest 1 million euros in Italy to build the "JAC-Italian Design Center" responsible for the design of a series of sedan products. Jiangling set up an R&D center as early as 1997, and now has the ability to independently develop the shape, body, chassis and electrical appliances.
With self-developed products, will consumers buy it? Facts have proved that consumers are still lacking confidence despite the high voice of domestic brands. Before this, there were also examples of the failure of commercial vehicle companies to switch to cars. The most representative of them was Brilliance. So far, Brilliance's Gold Cup passenger car market share has remained at least 40% of the performance has been maintained for 7 years, but its access to the car sector has been unsuccessful. In 1997, Brilliance launched a Chinese car through joint development, and the response was good. However, the market sales went from bad to worse. The main reason is that "buy technology" has taken a lot of money and the design cycle is too long, which has caused subsequent product upgrades to become problems. Afterwards, Brilliance made strategic adjustments, from purely "buy technology" to "mainly independent development and supplemented by external resources." Junjie was born under this strategy. But it is still unknown whether Brilliance can reestablish its prestige in the car market.
According to industry insiders, the transition from a commercial vehicle company to a passenger car is undoubtedly a "flesh transformation." In the joint venture's vast market of products, it is almost impossible to expect local companies to sell their products on the market, because their brands, technologies, and services are all in a weak position. Even if they make a fuss about the price, it will be difficult to scale up. Business hard fight. If the car produced is not recognized by the market, it will be necessary to subsidize the car with the profits of its commercial vehicles. In the long run, it may lead to a vicious cycle.
The chairman of Zotye Group, Ying Jianren, highly praised a book called "Blue Ocean Strategy." It talked about the "Blue Ocean Theory": If the market is likened to the ocean, "Red Sea" represents an intensely competitive existing market, and "Blue Ocean" It is an emerging market with relatively few competitors. "It is recommended that Chinese business decision makers read well. There are too many companies fighting in the Red Sea. Many companies have serious blood loss. Why not create a new space in the market? The Chinese auto industry has such a space."
The China Association of Automobile Manufacturers has announced the sales data of cars for the first quarter of this year. There are only 8 types of cars with an average monthly sales of more than 10,000 cars, including Xiali, Elantra, Excelle, Santana, QQ, Jetta, Accord, and Passat. At present, there are more than 100 models of cars sold in China, and more than 90% of them have monthly sales of less than 10,000. Many models have monthly sales of only a few hundred vehicles or even dozens of vehicles.
From the data point of view, it is not difficult to find that the vast majority of companies are fighting for you in the “Red Seaâ€. Say that the profits of the auto industry are high. In fact, profits are still earned by companies with unique advantages. Xiali's advantage lies in its large number of possessions. Because the taxi market has built up its reputation, consumers can buy it with confidence. Elantra is the leader in terms of configuration, low cost of use, and obvious price advantage. Excelle's comprehensive cost-effectiveness, its exterior design, its high configuration, and its mature drive from German technology are its strengths. Santana and Jetta are old models, but the technology is mature and reliable, the price is reasonable, and it is quite “safe†in the eyes of consumers. Twenty years ago, "Adventure of Santana, World is not afraid of" is the slogan. Santana is still in use today. With more than 600,000 users across the country, Jetta is the oldest and the most rugged and durable classic. QQ has an absolutely dominant position in the field of mini-cars. Its main shape is its easy-going, low-cost, and it took precedence over the opponent to grasp the market opportunities and took the lead in the “blue seaâ€. The Accord and Passat are the products of choice in the mid-range car sector because they chose the best time to enter a particular market.
The market is not static, and when a market is highly profitable, there will certainly be a large number of products of the same class to enter the market to grab this market. At that time, the "Blue Ocean" will become the "Red Sea." Ying Jianren believes that whoever enters the "Blue Ocean" will seize the opportunity. The premise of entering the "Blue Ocean" is to provide consumers with unique values. In the automotive industry, "Blue Ocean" is still common, and those commercial vehicle companies that have switched to a sedan should choose the route that best suits them before they can fight in the seas.
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