The year 2016 marked a significant rebound of the heavy-duty truck market thanks large in part to policies such as the implementation of the GB1589-2016 standards on sizes, weights and loads as well as Ministry of Transport’s clamp down on overloading and oversizing. As a result, heavy-duty truck sales jumped more than 30 percent to 733,000 units.
Major players in the sector that have already had their annual business conferences seem to hold a cautious view of the market in 2017. Below are highlights from the conferences. – Editor
SAIC-IVECO-Hongyan targets sales of 28,000 units and market share of 3.7 percent
SAIC-IVECO-Hongyan held its business conference on December 17, 2016 in Chengdu, Sichuan Province.
The company sold 15,517 heavy-duty trucks in 2016, rising 78 percent from a year earlier and took up 2.1 percent of the market share, up 0.5 percent on a yearly basis. Its dump truck sales reached 8,300 units, surging 140 percent from 2015.
The year 2016 marked a harvest year of product R&D, especially its 500 series products. Models released based on its 100 series platform at this conference cover traditional models, refrigerator vehicles, material vehicles, express delivery vehicles, center-axle lorries and Gentruck 6×4 tractors. Emissions of the 500 series products all reach China 5 emissions standards, displaying its strong capability in technological R&D and rapid response to market.
These new products make comprehensive upgrading in safety, economics, reliability, engine and comfortable degree in three years to improve the overall operation of vehicles. Meanwhile, their engine capacity covers 7L, 9L, 10L, 11L, 12L and 13L with horsepower ranging from 260 to 560.
Customers have become increasingly focused on light weight, low emissions, high efficiency and low cost in purchasing a car, propelled by implementation of new policies on controlling oversizing and overloading. To respond to this trend, SAIC-IVECO-Hongyan introduced the 500 series products advocating green engine emissions more in line with European standards and vehicle’s whole lifecycle TCO based on customer’s use value.
SAIC-IVECO-Hongyan plans to sell 28,000 heavy-duty trucks in 2017 with a market share of 3.7 percent. The most eye-catching move will be the launch of its new medium trucks to enrich its product lines.
Beiben eyes domestic sales of 13,000 units and export of 2,600 units
Beiben Heavy-Duty Truck Co. held its business conference on December 16, 2016 in Baotou, Inner Mongolia.
Beiben has achieved outstanding performance by making product restructuring and adding sales channels based on the trend of market demand changes, according to Qi Yuxing, assistant to the president. In particular, the successive launch of upgraded versions of V3ET and V3MT to the market in the second half of 2016 laid important foundation for the shift of Beiben heavy-duty trucks towards mid- to high-end products.
Beiben president Wang Baoying recognized the breakthroughs of Beiben in foreign trade, military vehicle products and mid- to high-end civilian markets by playing its advantages in technological innovation. Since the launch of the V3ET from July 2016, sales have reached close to 1,000 units, indicating substantial breakthrough in its strategic transformation.
He also analyzed the development trend of heavy-duty truck industry in 2017, forecasting total sales of 750,000 to 800,000 units. As for Beiben, it will make further improvements in product upgrading, quality lift, operating management, financing support, logistics supply and service safeguard, develop its new businesses and solve traditional problems. It is estimated that its sales target will hit 15,600 units in 2017, including 13,000 across domestic market and 2,600 for export.
Wang Shihong, chairman of Beiben, predicated a continued market expansion in 2017, driven by economic recovery, implementation of GB1589 and joint efforts of several ministries in controlling oversizing and overloading. Beiben will always follow the principles of communication, standardization, interaction and win-win results as well as delve deep into the three markets of military vehicle, foreign trade and mid- to hig-end products.
Sichuan-Hyundai aims to sell 45,000 vehicles in 2017
Sichuan-Hyundai held its business conference on January 10 in Emeishan, Sichuan Province.
The company saw its sales in 2016 increase 33.67 percent from the previous year, overshooting the annual sales target and maintaining consecutive years of growth. In particular, its Zhidao series of products have become a new growth point with accurate market positioning and prominent performance.
The company unveiled its independent brand Zhidao at the conference and made careful planning of its future progress. On the basis of Zhidao light truck 300M, Sichuan-Hyundai will release Zhidao 300N narrow-body light truck and Zhidao 500M wide-body light truck in 2017, a further step towards its long-term target of complete product lines and seizing mid- to high-end market share.
Besides Zhidao, the company also displayed its Trago, County and Nanjun series of products at the conference. The high-end product lines will be further strengthened to form complete product lines that incorporate high-end heavy-duty trucks, light trucks and medium buses and to keep in pace with the high-end-oriented trend. The Trago products will generally win market share through technology; Nanjun brands will focus more on economic segment and Zhidao series will deliver more diversified products for customers with multi-aspects demands, according to Jin Shiping, president of the company.
The eye-cathcing mature product of QTc, a high-end light truck, will be introduced from South Korea in 2017 and put into market in the second half of this year, to add weight in the light truck market with diversified product lines. As for the market strategy, service channels construction will be improved to guarantee more favorable conditions for the supply of spare parts.
The company seeks an overall sales target in 2017 of 45,000 units, expanding 17 percent on a yearly basis and including import of 5,500 units, 6,000 units of Zhidao products and 33,000 units of Nanjun products, according to Jin. As for new energy vehicles, the company is making R&D of County electric vehicles based on its advantageous technologies in this regard and is estimated to release the model in July 2017.
C&C Trucks seeks to sell 8,500 heavy-duty trucks in 2017
C&C Trucks held its business conference on December 26, 2016 in Liangshan, Shandong Province.
As a newcomer to the heavy-duty truck industry with its debut in 2010, C&C Trucks is estimated to have effective orders of around 7,000 units and accumulated sales of 6,025 units in 2016, according to Li Yanshuo, its acting president. During the past year of explosive growth of heavy-duty trucks in China, total sales have gone up 33 percent on a yearly basis, with engineering vehicles, cargo trucks and tractors rising 22, 26 and 50 percent, respectively.
The company has taken effective measures as reforms in 2016 based on its own situation, which includes creating marketable products, improving all-round management services and establishing cultural atmosphere of integrity standards, so as to keep pace with the on-going trend.
For the year ahead, Li forecasted that heavy-duty truck sales across China would see an increase of 10 percent to exceed 800,000 units. C&C Trucks will pursue sales of 8,500 units on the basis of guaranteed 7,500 units in 2017; a higher target of 10,000 units will also be considered if the entire industry sees better than expected growth.
In terms of operating planning for 2017, Li proposed brief guidelines featuring market-orientated, benefit first, risk control, management codes and integrity. To support the annual sales target in 2017, its vice president Ding Chuanman put forward eight key measures from such regards as enriching product lines, market pricing, standardized management, channel expansion, financial support, service support, promotion and coordinated development across the company.
New products will be released under the impact of GB1589 in 2017, including 4×2 transport van, 6×2 van/stake truck, U380 4×2 center axle freight train of Series K10, 6×4 center axle freight train with 350-440 hp, 6×2 center axle car transporter and 6x2R center axle car transporter, to push up 2017 sales target.
XCMG to sell 15,000 heavy-duty trucks in 2017
XCMG held its business conference on February 18 in Xuzhou, Jiangsu Province.
The Group sold 9,300 finished vehicles in 2016, surging 87 percent on a yearly basis, according to Luo Donghai, assistant to president.
Among the total 9,300, sales of HANVAN heavy-duty trucks and tractors hit over 6,000, an eye-catching explosion of 293.7 percent and creating a record of new product growth across the commercial vehicle industry.
At the conference, the new generation of super truck HANVAN G9, with advantages in top-class performance, comfort, safety and high cost performance, was also released and would accept nationwide reservations. Besides, HANVAN integrated truck mounted crane, integrated concrete mixer and G7 dumper were also released. Within merely one year, XCMG has formed a general product layout of three types and five platforms, becoming one of the few heavy-duty truck makers with complete product lines.
During the past year, the Group added another 65 dealers and 33 service stations, achieving overall coverage of important areas. The new dealers took up 30 percent of the total sales. XCMG also plans to add 200 more service stations in 2017 through continued upgrading of services and spare parts guarantee systems.
For the year ahead, the Group seeks to sell 15,000 heavy-duty trucks on a guaranteed basis of 12,000 units. Luo also unveiled a three-step development plan for the Group, namely, heavy-duty truck sales of 15,000 in 2017 with 1,500 for export; 30,000 by the end of the 13th Five-Year Plan period with 4,000 for export and an operating revenue of ¥10 billion; 60,000 for longer terms with 10,000 for export and a stable operating revenue of over ¥20 billion.
To realize the 2017 sales target, Luo suggested rapid improvement in management, accurate positioning of segmented markets with several models of competitive products, professional team of talent through training and selection, as well as the core driving force of marketing that highlights channel, customer and the brand.
(Based on public information released by companies)