China National Heavy Duty Truck, listed as a backdoor in the domestic market, is a subsidiary of the former group, Jinan Truck Co., Ltd., which is mainly composed of the manufacturing and sales divisions and the bridge box company to be listed in the listed company. The manufacturing division owns two complete vehicles. As the final assembly plant, the company mainly produces and sells Steyr, Steyr King and HOWO models, and is equipped with engine power divided into five gears of 260, 290, 336, 371 and 410 hp. At present, the company's total vehicle production capacity is approximately 70,000 units/year, and the bridge box company has 60,000 full-vehicle supporting bridge processing capacity, which is basically in full production. It is expected that the fourth-phase capacity expansion project will be put into operation in June 2007. It can achieve the production capacity of 80,000 complete vehicle supporting bridges.
The restructuring of the heavy truck market has led to rapid growth of domestic sales. Although the heavy-duty truck industry in the first quarter of 2006 still continued its declining trend, heavy-duty trucks with a carrying capacity of over 15 tons have shown a good recovery trend. With the rise in oil prices and the increase in the use of toll-by-weight provinces, the trend of shifting heavy-duty trucks as means of transport production to “big horsepower, large tonnage†products has become increasingly apparent. As the absolute leader of heavy-duty trucks with a capacity of more than 15 tons, the company will become the biggest beneficiary of the heavy-duty truck market with "steady overall and structural shift."
Adopt a low-cost strategy to successfully break through
The development strategy of Sinotruk is "leading technology, high quality, low cost, and internationalization." We believe that the company is very successful in its low-cost strategy and is also the company's biggest competitive advantage.
At this stage, the demand for heavy trucks is mostly dominated by low-cost and fuel-efficient economic products. The current leading price of China National Heavy Duty Truck is about 220,000 yuan. The price of its main competitor, Shaanxi Auto Delong Group, is around 300,000. Production and sales volume is only 16,000 units, and it plans to sell 30,000 units in 2006. In terms of production scale, CNHTC still has a clear advantage, so we believe that China National Heavy Duty Truck dominates the pricing of products.
For enterprises taking the low-cost route, it is critical that their product quality and performance are consistent with similar products. In this regard, China National Heavy Duty Truck is also in a leading position. The company’s heavy trucks are required to have their own parts and components of major assembly components, and only the steering wheel still needs to be imported. Through the absorption of advanced technologies from other countries, Steyr King, which was launched in 2002 based on the original Steyr products, has fully replaced the old models. The self-developed HOW7 models have greatly improved safety and comfort. With a luxurious appearance, it was immediately welcomed by the market when it was launched in 2005 and sold more than 10,000 cars in the year. In April 2006, the Ministry of Communications listed 8 models of Sinotruk on the commercial vehicle recommendation list, while FAW, Dongfeng and other industry leaders failed to enter.
Marketing network and information system leading peers
The perfect 4+1 sales model and marketing service network construction enhance the company's ability to find market demand while ensuring the quality of sales. According to the different end-users, CNHTC's marketing model is divided into 4 + 1 systems of distributors, refitting plants, system users, resource management and after-sales services. Dealers mainly aim at end-users, and refitting companies mainly purchase company chassis for secondary refitting. System users mainly target direct sales of major customers such as petroleum and postal services. The main tasks of sales companies and offices are to assist nationwide agency sales network sales and supervise sales prices. management. In respect of the 4S image store and "kinship service," China National Heavy Duty Trucks is the first company in the industry, so when more than 70 new products are put on the market each year, they will have good results.
The group companies are also worthy of attention in terms of information network construction. Since 2001, the cumulative hardware investment has exceeded 45 million yuan. In the production and operation, the order-sales-after-sales service information system has basically been implemented. From the date of order generation, each truck has its own unique network identification ID and relevant information of the user. It can achieve real-time monitoring of production, inventory, spare parts supply and sales collection, which greatly improves the management efficiency of related links. .
The company's perfect marketing network and industry-leading network information system can improve the company's sales quality, but also can timely feedback customer information for the company to capture market demand hot spots, to achieve a strong regional strategy. The reason why the cement mixer truck chassis launched by the company was hot this year was the result of discovering hot spots in the market. In the first quarter of 2006, its sales volume accounted for 40-50% of the company's total sales.
Vehicles dominate the heavy truck industry chain
The separation of Weichai Power and CNHTC Group once allowed the market to imagine whether China had emerged as an independent engine supplier that was as strong as Cummins. Our point of view is that the current Chinese market environment has determined that in the recent years, the pattern of parts manufacturers will not dominate the entire vehicle, and the core OEMs will still dominate the industry. The reason for this is that on the one hand, China does not form an independent supplier of spare parts whose technological capabilities dominate. Even if it is as powerful as Weichai Power, its suspension of supply to China CNHTC has not affected the sales of Sinotruk, indicating that its products are not irreplaceable. On the other hand, OEMs are in direct contact with end-users, and thus have a natural close relationship with users and sales service providers. Parts manufacturers can only rely on the sales and service network of the entire vehicle to carry out services. It is impossible to establish services. Independent network. In fact, major heavy-duty truck manufacturers in foreign countries have upwardly integrated core component manufacturers. For example, Mercedes-Benz and Volvo have produced their own core assemblies such as engines. Sinotruk is also working hard in this direction. Therefore, in recent years, there is no need to worry about the squeeze of China National Heavy Duty Trucks by suppliers such as engines and transmissions.
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