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New deal: second-hand commercial vehicle sales

The 1st China Second-Hand Commercial Vehicle Industry Development Forum and the launching ceremony of the Commercial Vehicle Value Alliance were held in Liangshan, Shandong from November 18 to 19, indicating a new growth of China’s commercial vehicle industry.

Organized by China Automobile Dealers Association (CADA) and Foton Daimler Automotive Co., Ltd., the event attracted experts and executives from OEMs, universities, second-hand vehicle markets, second-hand vehicle online transaction platforms, insurance companies, financial companies, auction companies, and commercial vehicle dealers, etc.

Experts and participants analyzed the future development of second-hand vehicle industry, released the China Commercial Vehicle Evaluation Standards and Price Index, and established the Commercial Vehicle Value Alliance during the event.  

The competition of the commercial vehicle industry has turned from products competition into the customer-centered whole value chain competition. As a key part of the commercial vehicle value chain, second-hand vehicles have aroused attention of various parties. Foton-Daimler established the first online commercial vehicle transaction platform and integrated multiple resources such as vehicles, goods, management, financial insurance, and logistics parks to support customers. The company also extended industrial value chain, provided whole life cycle services to customers, and established sustainable CV operational ecosystem.

Weak service and trade information opacity have hindered the development of China’s second-hand CV market. Thus Foton-Daimler, CADA, Shandong Jiaotong University, Ping’an Group, representatives of second-hand vehicle agencies and dealers drafted the evaluation standards and price index of second-hand commercial vehicles. The evaluation standards include technical and price evaluation standards, while the price index includes real-time transaction prices and transaction trends. The evaluation standards and price index are designed to regulate the evaluation and transaction of second-hand CVs and improve their creditability.

Twenty representatives from Foton-Daimler, Liangshan Huatong, Shandong Jiaotong University, Ping’an Leasing, Ping’an Property Insurance, Shandong Express, Loji Logistics, Dianjue Logistics, Transfar Logistics, egear, FSLB Auction, yiche.com, 58.com, 360che.com, Lianyungang Huatai, Yichun Erlingliu Logistics, Taizhou Shikai, Baotou Wantong, and Gao’an Xingfa signed the scroll to set up the China Commercial Vehicle Value Alliance. The alliance aims to promote cross-border integration and provide complete vehicle operation solutions to customers.

O2O to improve customer experience

Most commercial vehicle purchasers choose to trade-in their vehicles when purchasing new ones. However, transaction volume growth remained low due to ineffective circulation and disposal process. Foton-Daimler joined other commercial vehicle value alliance members to start a second-hand commercial vehicle information interaction platform and connect dealers, second-hand vehicle agencies and end users. The platform plans to realize overall information exchange through integrating online consignment sales, online bidding, and value evaluation functions.

Foton-Daimler also launched its second-hand vehicle store during the forum. The company has established 69 second-hand vehicle dealers to date and will form a complete second-hand vehicle value chain based on the online platform and offline stores. Foton-Daimler aims to establish an integrated full life cycle service insurance platform and provide total solution in aspects of purchase, finance, insurance, operation, service, components and second-hand vehicle disposal.

Multiple cooperation partners have contributed to the ecosphere of Foton-Daimler. For example, the Loji Logistics provides freight matching information to customers through the vehicle and freight system. The logistics management platform and OBD system of Dianjue Logistics largely improved logistics efficiency. Ping’an Group provides one-stop financial service such as new vehicle financing, vehicle extended warranty and second-hand vehicle financing to customers. Shandong Express provides the ETC cards and gas cards as value-added services. The CPAG Group and its subsidiary large logistics parks support customers with park information, parking lot information and life services. Liangshan Huatong helps with the circulation and disposal of second-hand vehicles. Yiche.com, 58.com, egear and FSLB Auction provide second-hand vehicle information and trading services.

The first forum of the second-hand commercial vehicle industry witnessed the establishment of Commercial Vehicle Value Alliance and the release of Commercial Vehicle Evaluation Standards and Price Index. The platform targets at better serving the customers through user and resource interaction, value realization and customer experience to promote healthy development of China’s commercial vehicle industry.

(Rewritten by Jennifer Chen based on author’s article on find800.cn)

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