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Through the long winter of 2005, although China’s heavy-duty truck industry has seen a resurgence in 2006, the continuing downturn is still not optimistic. The lack of demand has caused many heavy-duty truck companies to face difficulties. The veteran giants such as FAW and Dongfeng have performed at a flat rate, and China Heavy-Duty Truck's growth has slowed down. In contrast, the rapid growth of Shaanxi Auto is quite a concern. As of the third quarter, Shaanxi Auto Heavy Industry continued to maintain a growth rate of 113%, ranking first in the growth rate of the industry, and completed the annual sales target in advance in November. At this rate, industry insiders predict that in the upcoming 2007, a major reshuffle in China's heavy-duty truck industry will inevitably be avoided. The Shaoxing faction represented by Shaanxi Auto will hopefully break into the first camp.
Experts believe that from the perspective of the 2006 full-year situation, the competition in the heavy-duty truck industry is mainly carried out in terms of fuel-efficient performance, after-sales services and brand marketing. Shaanxi Automobile took the lead in independent research and development of fuel-saving heavy trucks and pioneered value-added service models, which laid the foundation for Shaanxi Automobile to take the initiative in the market. Especially in the industry's first brand declaration, Shaanxi Automobile introduced brand marketing into the heavy truck industry, marking that Shaanxi Automobile has surpassed its competitors at the strategic level.
Fuel-efficient heavy trucks become the focus of competition
In 2006, the soaring of oil prices raised new challenges for heavy-duty companies that consume more energy. To win the favor of consumers, it is necessary to vigorously develop energy-efficient heavy trucks. Therefore, domestic heavy truck companies have adjusted their product structure. Shaanxi Auto has taken the lead to introduce the “Shaanxi Gasoline Fuel-Saving Series Heavy Trucks†with 10-15% fuel economy at the beginning of the year. New products have won the favor of users since its launch, and seized the opportunity for Shaanxi Auto’s full-year market expansion. .
Behind the competition is the competition of development ideas and comprehensive strength. In fact, not only fuel-saving heavy trucks, but also independent innovation, continuous research and development of new technologies and development of new products are the development ideas of Shaanxi Auto. For this purpose, Shaanxi Automobile brought together well-known manufacturers such as Weichai Power, Hunan Torch, Fast, and Hande Axle to form the gold supply chain that is now the leading heavy-duty truck industry, drawing on the key core technology of today's heavy trucks and laying the foundation for new products. basis.
For a long time, the lack of proprietary technology and the homogeneity of products have been a common phenomenon in the heavy truck industry, which has constrained the industry towards high-end development. Shaanxi Auto has achieved product differentiation by relying on independent innovation. It has opened up a gap in the heavy truck market where demand is weak and the competition is fierce. This is called “Shaanxi Steam Phenomenon†by the industry. People in the industry believe that the "Shaanxi steam phenomenon" has a positive and positive guiding role. Predicting the future development direction of China's heavy truck industry.
Service upgrade highlights user-oriented
Although 2006 was the first year of the Eleventh Five-Year Plan, the growth of the national fixed asset investment stimulated the development of the heavy truck industry to a certain extent. However, the continuous growth from 1998 to 2004 caused the heavy truck industry to exceed supply to continue to exist. . In 2006, the growth of China's heavy truck industry is still limited.
In the situation of limited market capacity, major manufacturers have introduced various service initiatives in 2006 to attract users. Such as Dongfeng Liuzhou Automobile's "Sunshine Online" and Yuejin Automobile's "Intimate 360", etc., to provide convenient parts supply, a good after-sales service system, while other manufacturers from the user point of view, to provide more value-added services.
In mid-2006, soaring oil prices made it an unacceptable large expense for users, which directly affected user profits. For this purpose, Shaanxi Steam launched the first summer camp of the heavy truck industry – a summer camp for heavy-duty fuel-efficient users. The summer camp integrates car performances, fuel-saving knowledge training, and tourism as a whole. In a relaxed and lively form, it has sent a fuel-saving and money-saving gospel to the masses of users and created a precedent for value-added services in the heavy truck industry. “Compared with the previous services, the upgraded value-added services have undergone a qualitative change. From the original vehicle-based service center to the user-centered service,†said Zhang Yupu, chairman of Shaanxi Auto. The innovative service strategy has attracted competitors' dealers, conversion plants, service providers, and other advantageous resources. In 2006, 70 competitors’ distributors went to Shaanxi Auto.
Brand strategy leads the industry
As the world’s largest truck country, China ranks first in the world in terms of production, sales volume, quantity, and number of brands, but in stark contrast to the quantitative advantages, the brand value of Chinese trucks cannot match the world’s level. On the other hand, it is difficult to obtain a strong premium in the market. And attracted by the lucrative profits, international heavy truck giants such as Volvo, Wuling and Daimler-Chrysler are making great efforts to enter the heavy truck market in China, further exacerbating the competitive situation of China's heavy truck industry.
Against this background, Shaanxi Automobile's "Brand Declaration" in 2006 provided new ideas for the development of China's heavy truck industry. The core of this declaration is to achieve the future with quality, ensure the best product quality and optimal service quality for consumers, and stay away from irrational competition to build a 100-year heavy truck business. “Through this measure, Shaanxi Automobile hopes to clearly highlight the brand characteristics, establish a high-quality awareness of Shaanxi Automobile among its customers, and distance itself from competitors.†Shaanxi Automobile Chairman Zhang Yupu told reporters.
Shaanxi Steam's brand strategy not only comes from self-confession, but also reflects in contact with the majority of users. Shaanxi Auto launched a nation-wide “Shaanqi Steam Truck Heavy Trucks, Save China†large-scale marketing campaign, “Save money for a reason, and earn money to rely on a good carâ€. Deeply branded Shaanqi's high quality image, improved Shaanxi Shaanxi's product recognition, and its market share continued to rise. Recently, Shaanxi Automobile brand products won the "2006 Most Competitive Advantage Brand and Automobile Industry in China" The ten most famous brands that consumers love most are ".
"The brand is not strong. Chinese trucks have no hope. The quantity alone cannot support a better tomorrow. Only the improvement of quality and the strength of the brand can bring lasting glory." Shaanxi Automobile CEO Zhang Yupu believes.
Perfect products and services are the cornerstone of the brand. Industry insiders believe that in the highly competitive heavy truck market, competition means will inevitably exceed product competition, service competition, and change to the highest competition mode of brand competition. As the domestic heavy truck giant Shaanxi Automobile issued the brand declaration for the first time in the industry, it shows that the brand awareness of China's heavy truck companies is awakening, and heralds an era—the era of brand competition.
Under the circumstances that the overall market is not growing, and external conditions are difficult to change for a while, how China's heavy truck companies can achieve breakthroughs, Shaanxi Automobile has given a good answer.
In 2007, the competition in the heavy-duty truck market will become even fiercer. Experts expect that it will be difficult for the old companies that rely on policy resources or low prices to seize the market. The heavy-duty truck brand that has really stood the test of the market will become the industry leader and lead the future development direction of China's heavy truck industry.
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In 2006, Shaanxi Automobile stirred up the heavy truck structure and the youngest sentiment impacted the first camp.