Special Report

November 27, 2014

China’s commercial vehicle industry: Shift of market demand and enterprise innovation

Huang Gang, President of Dongfeng Commercial Vehicle argued that in the following ten years, the market demand will fall down. Public concerns, social environment and safe energy issues will be the new requirements of the entire automotive product technology areas. Furthermore, the customers themselves and the transportation industry are undergoing profound changes, while the requirements to the product and service will be higher.

In this background, Huang Gang said that China’s commercial vehicle industry will confront with a transition in three aspects: Development model from ex-dogen to in-dogen.

Chinese market has focused on the heavy duty truck. But the market volume in China is the biggest one worldwide even with volume reduction. Facing with the energy and environmental restriction, the industry needs to go the in-dogen development.

Improve product quality and increase price.

The identity of transformation from a car manufacturer to a transportation solutions provider, we do not simply need to provide customers with a product, but should give him appropriate service solutions.

Cao Jianwei, Executive Assistant of Yutong Group think that, changes in the structure of the passenger auto market in the past two years is normal, it is impossible to maintain the stability of high growth. For sustainable development, we must deal well with the following two things: first, committed to technological innovation to meet customer demands for higher operational efficiency.

Second, providing new energy products.

Michael Lembke, General Manager of Dongfeng Dana Axle Company argued that, further urbanization trend will not change; this will bring changes in market structure. We forecast the next four to ten years; new vehicles would grow very fast. There are many cities in Europe using heavy-duty trucks in suburban area. And some light trucks, electric trucks are also engaged in transportation between cities, this trend is very likely to occur in China. China needs to seek the support of multinational suppliers when expanding overseas market.

Andreas Schmitz, CEO of Schmitz Cargobull (Wuhan) Trailer Co. Ltd, thinks that it is too late to enter into the Chinese market. The company size can reach 20,000 vehicles a year in the future. This process is not primarily driven by the government, but mainly by the market. We need to establish a channel for communication. Understanding the demand of the customers is what we really need.

-Published on page#24 November-2014 edition of MOBILE WORLD Magazine

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