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In recent years, after the changes in various factors such as the domestic economic environment and the auto market environment, a new round of consolidation adjustments has taken place in the commercial vehicle segment market. More and more commercial vehicle companies are trying their best to turn to “commercial transferâ€, and they will even look into the passenger car market where the future growth space can reach.
At the beginning of the year, Futian Automobile Co., Ltd., the leader of commercial vehicles, announced that it will achieve annual production and sales of 4 million units by 2020, and passenger vehicles will occupy more than 38% of the total business volume. In 2014, Foton will truly enter the car market. The first is the mid-to-high-class car. In the future, it will also launch a series of large-scale SUVs and MPV products. According to sources, Xiamen Jinlong is also applying for a sedan project. It is reported that the Xiamen Golden Dragon Sedan is a standard economic A0 hatchback and its market segment is locked in the emerging third and fourth-tier cities. Zhongxing Automobile, which is known for its production of pickup trucks, has also officially announced its entry into the production of passenger vehicles. ZTE Automobile Yichang Base Phase I project invested 1.3 billion yuan to produce cross-country and fashion version of the C11 series of urban SUV models. In addition, although commercial vehicles such as Jianghuai, Jiangling, and SAIC-GM-Wuling still have commercial vehicles as their core business, the passenger vehicle segment they launched has also achieved remarkable results as a strategic business.
Some experts believe that commercial vehicle demand and profit are far inferior to passenger vehicles. This is an important reason why many commercial vehicle companies have actively transformed into the passenger car market. For example, in 2009, Foton sold 600,000 vehicles, surpassing Daimler to become the world's largest commercial vehicle company, but its annual net profit was only 1.037 billion yuan. The joint-venture passenger vehicle company with a domestic production and sales scale of more than 500,000 vehicles has a net profit of more than 4.5 billion yuan, and the gap between the two is obvious. Especially after the dual pressures of rising costs and shrinking demand in the commercial vehicle industry in recent years, this desire has become particularly urgent.
It is understood that almost all of the "business-to-business" companies have gained a place in the passenger car market, and at least they seem to have achieved some results in the short term. From the future planning of Foton Motor, it can even be seen that this “boss†of commercial vehicles still has the ambition to be the “boss†of passenger cars in the future, although people in the industry believe that this is unlikely.
However, the reality is that commercial vehicles and passenger vehicles have many differences in business philosophy, channel construction, and after-sales services, and the management routines of commercial vehicle companies cannot be completely copied to passenger vehicles. What's more, the current market is very different from previous years. The passenger car market in the first- and second-tier cities has become saturated. New entrants' market development and branding are all more difficult. The market demands new entrants' products and services. higher.
How to do a better job is a major challenge for commercial vehicle companies planning to enter the passenger car market, including Xiamen Golden Dragon, Zhongxing Auto and Beiqi Foton.
Of course, some people are optimistic about the phenomenon of “business-to-business†and believe that these commercial vehicle companies are in a much better position than their own independent brands such as Geely and Chery. Today's auto market has long been different from before: products must not only be beautiful, quality must be guaranteed, and after-sales services must be put in place. In general, the products of these companies are certainly higher than the previously entered independent brands. Moreover, because there was a commercial vehicle distribution network before, it is much easier to establish a network of passenger vehicles. Despite its lack of experience, it is better to learn to improve fundamentally than to touch the stones.
So is "business-to-business" good or bad? May wish to wait and see. The road ahead is still very long. Whether it can go well or not can only be left to the market for further inspection.