China's commercial vehicle market is worthy of attention


    Due to the different stages of development, the international automobile industry mainly refers to the passenger car industry related to passenger cars. However, in fact, there is another area where China's automobile capital market is quite large and large--commercial vehicles.

    As China is in the process of large-scale industrialization and urbanization, trucks and buses are needed to meet the transportation needs of production materials and people. China's truck and passenger car manufacturing industry is undoubtedly a major component of the Chinese automotive industry, and it is the most dynamic and most internationally competitive segment.

    Carefully analyzed, the production and consumption attributes of trucks and buses as production materials differ greatly from the passenger-driven passenger vehicle industry. However, the current analysis of many issues in the industry does not distinguish between the passenger and commercial vehicle industries. . Judging from the conclusion that “the automobile industry has a poor market competition structure”, in fact, the current industry concentration in the sub-sectors of the auto industry is mainly the car industry, while the market concentration of a large number of commercial vehicle sub-sectors is high. Leading companies already have very strong advantages. For example, Yutong and Jinlong have occupied more than 50% of the large passenger car market, while China Heavy Duty Truck and Shaanxi Heavy Duty Truck Group share nearly 60% of heavy trucks with a load of over 15 tons. In addition, regarding the issue of joint ventures and investment income, the car industry is also mainly affected; in most commercial vehicle sub-sectors, the domestic market share of the company exceeds 90%. Exaggerating and extending the problems in the car industry to all sub-sectors in the automotive industry has a clear misunderstanding of the development of related industries.

    Independent brand commercial vehicles form a strong advantage in the low-end commercial vehicle market

    After fierce competition in the domestic market, most domestic mainstream commercial vehicle companies have strong independent research and development capabilities and significant low-cost advantages. China's own-brand commercial vehicles have a relatively large price advantage in terms of technical performance and international level, and their price/performance ratio is much higher than that of foreign brands. The advantages in medium and heavy-duty trucks, large and medium-sized buses, and light trucks are very obvious.

    From the development of the past decade or so, it can be seen that commercial vehicles, especially in large and medium-sized buses and trucks, have increased their market share and have occupied more than 90% of the market share. Joint ventures and imported vehicles are only In some high-end market segments, there is competitiveness.

    Export has become an important growth point for commercial vehicles in China

    In general, as China's industrialization process is significantly faster than the urbanization process, commercial vehicle development maturity is higher than that of passenger vehicles, but the future development space in the domestic market is less than passenger vehicles. At present, it is reflected in the growth rate of the industry is lower than passenger cars based on passenger cars.

    Therefore, the export of commercial vehicles will become an important driving force for the growth of the industry. China's light trucks, large and medium-sized passenger vehicles, medium- and heavy-duty trucks and other products are much cheaper than those of developed countries. With the improvement of technology level and the improvement of the quality of vehicle development and manufacturing, there is a clear cost-performance advantage in meeting the needs of developing countries in the world.

    According to statistics, the export of Yutong Bus, Jinlong Automobile, China National Heavy Duty Truck and other companies has gradually accounted for more than 10% of the company's production and sales, and is becoming one of the key factors in the future development of the company. According to the company's export planning and the expansion of overseas marketing of products, sales in the international market may account for about 30% of the company's sales in 3 to 4 years.

    Commercial vehicle market structure is relatively stable

    From the perspective of consumers, commercial vehicles and passenger cars, which are mainly passenger cars, are very different from each other. Because customers have a better understanding of product performance and better understanding of cost-effectiveness, they are expert consumption. Reflected in the market, brand loyalty is relatively higher and the market structure is relatively stable. As can be seen from the main commercial vehicle market segments, the market share of companies with stronger product competitiveness has expanded rapidly, which has led to the industry’s leading position, corresponding profitability is stronger, and the overall degree of concentration has increased.

    As a result, the leading companies in the commercial vehicle market have relatively stable growth in their future performance. With the development of the international market, major companies are expected to achieve more than 20% growth in performance.



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