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Recap of heavy-duty truck manufacturers’ annual business conferences (I)

It’s late December and that means heavy-duty truck manufacturers’ annual business conferences are in session. Following are highlights from business conferences held by FAW Jiefang, CNHTC, Shaanxi Auto and Beiben. – Editor


FAW Jiefang targeting sales of 264,000 medium and heavy-duty trucks in 2018, 304,000 in total

CHENGDU – FAW Jiefang Automobile Co., Ltd., China’s leading heavy-duty truck maker, is eyeing sales of 264,000 medium and heavy-duty trucks in 2018 for a market share of 22 percent, according to the company’s 2018 annual business conference held here on December 18.

Wang Zhicai, president of FAW Jiefang Sales Co. and director of sales and marketing at FAW Jiefang, announced the sales target, which accounts for nearly 87 percent of the total vehicle sales target of 304,000 units, the rest of which are light trucks.

By December, FAW Jiefang had far exceeded its annual sales target of 227,000 vehicles: total vehicle sales reached 282,000 units, including 255,000 medium and heavy-duty trucks, putting it ahead of the pack in both the medium and heavy-duty truck combined segment as well as the heavy-duty truck segment alone. Light truck sales topped 27,000 units, up a strong 79 percent year-on-year.

As of the date of the annual business conference, total vehicle sales had already surpassed a record 300,000 units.

The company attributed the strong performance in 2017 to precision prognosis and scientific planning. Centering around its core sales regions and linking together dealers to strengthen marketing and network resources, it had nine provinces and regions including the Beijing-Tianjin-Hebei cluster, Henan, Anhui, Shandong, Shanxi, Jiangxi, Liaoning, Jiangsu and Jilin with sales topping 10,000 units. Its “258” marketing strategy for the southwestern market resulted in sales of 16,000 units for that region, more than twice the level of the year ago period.

Timely introduction of lighter, faster and more efficient trucks with more capacity and better comfort in response to market changes brought by the new GB1589 regulation catering to different regions, climates and logistics needs helped propel sales. FAW Jiefang diversified the J6 product lineup to solidify the model’s leading position in the tractor market. The company also remained innovative with open road testing of autonomous trucks and the debut of SSCR technology (using solid ammonia).

For 2018, FAW Jiefang has lined up additional new tractor variants for the 2018 model year J6L, and is expected to strengthen product offerings in the dump truck and special-purpose vehicle segments, as well as introduce new models powered by natural gas.

“Standing at a new starting point and facing the future, FAW Jiefang will have three aims,” said Hu Hanjie, president of FAW Jiefang. First, it will strive to lead the industry in products, value chain and sales; second, it wants to lead in innovation in sales and marketing methods, content and business models; and third, it wants to lead in responsibility in terms of independent development, logistics industry development and the welfare of employees along the value chain.

“The year 2017 is a historical and breakthrough year for FAW Jiefang as both parent company FAW Group and FAW Jiefang deepened reform,” said Dong Chunbo, vice president of FAW Group. “FAW Group wants to become a Chinese leading and world-class automaker while FAW Jiefang is aiming to become the top selling brand in Chinese commercial vehicles.”


CNHTC eyes sales of 330,000 vehicles in 2018 including 205,000 heavy-duty trucks

JINAN, Shandong – China National Heavy-Duty Truck Group Corp. (CNHTC), China’s third largest heavy-duty truck maker, plans to sell 330,000 commercial vehicles including 205,000 heavy-duty trucks in 2018.

The targets were announced at CNHTC’s 2018 business conference organized by the company’s sales department on December 17 in Jinan, Shandong Province, where CNHTC is headquartered.

In 2017, CNHTC is expected to sell 300,000 vehicles, up 47 percent, while sales revenues are expected to reach ¥90 billion, up 30 percent, according to Wang Bozhi, the newly appointed chairman of CNHTC.

In particular, CNHTC exported 32,000 heavy-duty trucks in the first 11 months of 2017, up 34 percent and accounting for half of China’s total heavy-duty truck export during the period.

“We expect to export a total of 33,000 heavy-duty trucks for the year and maintain our status as China’s top exporter of heavy-duty trucks for the 13th consecutive year,” said Wang. “This is the result of CNHTC’s concerted efforts in recent years to innovate, refine our products and adjust our business structure.”

Among the company’s heavy-duty truck sales in 2017, those equipped with engines using MAN technology jumped 97 percent year-on-year and accounted for 43 percent of CNHTC’s heavy-duty truck sales, according to Wang. Tractor sales also maintained momentum as the fastest growing in the industry, while engineering vehicle sales including mixing vehicles jumped 172 percent year-on-year. Natural gas heavy-duty truck sales increased by more than seven-fold and light truck sales increased significantly.

CNHTC’s goal in 2018, in addition to the sales volume targets, is to achieve revenues of more than ¥100 billion with major financial indicators up 10 percent, according to Zhang Xiaodong, sales president of CNHTC. It also plans to double its market share of natural gas heavy-duty trucks.

CNHTC showcased more than 60 vehicle products including the first generation of the SITRAK smart safety truck with AEBS, ESC+EBS, LDWS, HAS and ACC features, 20 units of which were delivered to customers. It also showcased three hydrogen fuel cell vehicles including a 12-m BRT hydrogen fuel cell bus, a hydrogen fuel cell low-speed tractor for ports and a HOWO hydrogen fuel cell compressed garbage truck. Several China-6 emissions standards compliant diesel engines including the MC13 and MC07 as well as a China-6 compliant MT13 natural gas engine were also displayed.


Shaanxi Auto targeting sales of 200,000 heavy-duty trucks in ‘18 after sales top 160,000 in ‘17

JINAN, Shandong – Shaanxi Heavy-Duty Truck Co., Ltd. (Shaanxi Auto), China’s fourth largest heavy-duty truck maker by sales, has set a sales target of 200,000 units for 2018 after sales in 2017 are expected to top 160,000 units.

Tan Xuguang, chairman of Shaanxi Auto and chairman and CEO of parent company Weichai Power, made the announcement at the company’s 2018 business conference held here on December 19.

“In order to achieve this goal, we will introduce relevant business policies to build confidence for our dealers and customers, and Weichai will fully support Shaanxi Auto in this endeavor,” said Tan. “Shaanxi Auto will also gradually move into the medium and light truck segment to maximize powertrain value.”

By the end of November, Shaanxi Auto sold 154,700 heavy-duty trucks, up 72 percent. It’s one of six “big” accomplishments the company achieved in 2017, according to Yuan Hongming, president of Shaanxi Auto and chairman of Shaanxi Automobile Holding Group. In addition, it formed a 10 million-scale innovation fund and drafted 10 “3-5 Year” mid-term plan targets for breakthroughs in management, R&D and sales and marketing. Its X3000 and M3000 series have become mainstream products on the market, while tractor and special-purpose vehicle sales growths, dump truck and environmentally friendly muck truck sales and port tractor parc all led the market. It has achieved major revolution in product quality in terms of safety, dependability, efficiency and comfort with customer satisfaction rate rising 2 percentage points. Its management and sales & marketing capabilities strengthened significantly.

The 160,000 units in heavy-duty truck sales the company is expected to achieve represent an all-time high in the 50-year old history of Shaanxi Auto. Civilian sales of heavy-duty trucks topped 140,000 units, also a record high, nearly twice the level achieved in 2016 with a market share of 15.4 percent, up 1.8 percentage points.

Shaanxi Auto led the heavy-duty truck market in six categories. It had the biggest sales and market share growths among the top five in the segment, its tractor had the biggest influence on the market, its 13L high horsepower product led sales in that segment, it led the economy segment and it led sales in both the muck truck and natural gas truck segments. It also led sales growths in the port, express delivery, cold chain, hazardous materials and car transporter sub-segments.

Specifically, it sold 96,000 tractors in the first 11 months, up 94 percent with a market share of 17.6 percent, according to Liu Xiangtao, president of Shaanxi Auto Sales. Dump truck sales jumped 135 percent to 31,000 units with a market share of 21.8 percent. Special-purpose vehicle sales reached 7,000 units, up 126 percent with a market share of 9 percent, while cargo truck sales increased 5 percent to 6,000 units. The X3000 Gold edition led the 13L high-end segment with sales of 28,000 units, while the M3000 product line led the economy segment with sales of 64,000 units, up 80 percent. Sales of muck trucks and natural gas trucks reached 22,000 and 17,000 units, respectively, the most in their respective segments.

Liu predicted that China’s heavy-duty truck sales in 2018 will reach between 850,000 and 900,000 units, to be down about 22-27 percent from 2017, with diesel tractors, cargo trucks and special-purpose vehicles experience declines but positive growth for natural gas trucks.

“Due to the mid- to long-term price differential of diesel and natural gas, prohibition of diesel trucks operating in ports and favorable new energy policies, we expect natural heavy-duty truck sales to reach 90,000 units in 2018,” said Liu.

Shaanxi Auto plans to expand product lineup in 2018 to cover 31 sub-segments to help it reach its 2018 sales target.


Beiben to launch high-end smart lightweight heavy-duty truck in 2018, eyes sales of 18,000 units

BAOTOU, Inner Mongolia – Beiben Heavy-Duty Truck Group plans to achieve sales of 18,000 heavy-duty trucks in 2018 and will strive to reach 20,000 units, including 3,000 units for the export market, according to Wang Baoying, president and deputy Party secretary of the company.

Wang made the announcement at Beiben’s 2018 business conference held here on December 13.

In the first 11 months of 2017, Beiben sold 13,309 heavy-duty trucks, up 52.54 percent year-on-year. Sales are expected to top 14,000 units for the year. Tractor sales reached 5,121 units, up 157 percent, while dump truck sales reached 4,660 units, up 75 percent. Cargo truck and special-purpose vehicle sales were slightly down during the period. New high-end products such as V3ET, V3MT and muck trucks combined to sell 6,395 units, accounting for 57 percent of sales.

By the end of November, it had signed overseas contracts for 2,091 trucks, up 30 percent and ranking sixth in the industry in truck export, the delivery values of which had topped ¥700 million. It received orders from Chile, Cuba, South Africa and Iran and exported 250 trucks to Mongolia, making it the top selling Chinese heavy-duty truck brand in that country. It also had breakthroughs in the Philippines, Vietnam, Cameroon and Ghana markets. The company added 126 new dealers in 2017, which accounted for 30 percent of total sales.

Wang predicted that heavy-duty truck sales in 2018 will be down to about 800,000-900,000 units from the record levels of more than 1.1 million units in 2017. Tractor sales will reach about 495,000 units, down from the 2017 level of about 557,000 units, while dump truck sales will reach 167,000 units, down from 180,000 units in 2017.

In order to ensure that its sales target is reached in 2018, Beiben has set a series of tactical plans.

First, it plans to expand marketing of the mid- to high-end V3ET truck and natural gas trucks and add lightweight dump trucks to the product mix. Second, it will focus on strengthening its regional stronghold in Inner Mongolia. Third, it will expand overseas presence through both network expansion and localized production, adding more sales efforts in Algeria, Mongolia, Ecuador, Indonesia, Malaysia, the Philippines, Vietnam and Saudi Arabia. Fourth, it will strengthen R&D efforts and launch eight new variants for the V3ET, V3MT, V3 and NG 80 product series. It will also launch smart high-end trucks. Finally, it will strengthen its aftersales service system such as assurance of spare parts supply and service training.  

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