Truck companies launch "large leasing" has little effect
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In mid-June, Valin Motors held a seminar on the strategic planning of the marketing network of the Xingma Automobile, and launched a new "big rental" marketing model to cope with the current severe market situation. Will Valin's marketing campaigns be successfully implemented with effective results? Will Other heavy truck manufacturers introduce more new measures to save the market?
Establishing a logistics company to implement "Large Leases"
Valin Xingma Automobile Group Chairman Liu Hanru believes that after years of development, the commercial vehicle industry has undergone changes in the market competition environment, has been changing to the industry chain and core technology, to financial services, product quality services, financial leasing services , transportation and information services, "replacement of old" and other full-service changes. Valin's "Large Lease" model is based on cooperation with dealers in all major markets across the country. The distributors are leading the establishment of the logistics company's main Xingma Special Purpose Vehicle and Hualing Heavy Duty Truck "Jin Xinxin" and leasing business, to provide users with a full range of The use of second-hand car financing, "replacement of old", affiliation and other services; construction of logistics information and second-hand car information platform, to provide information services for Xingma Special Purpose Vehicle and Hualing heavy truck users; to promote special vehicles to cover the third and fourth tier cities and occupy Small and medium-sized cities market.
According to the plan, Hualing will set up about 30 logistics companies during the year and set up about 100 next year to ensure that the business covers all the mainstream markets of Valin. Hualing said that 51% of the shares of the joint stock logistics company belong to the distributors, and 49% to Hualing Xingma. Both sides entered the freight industry through the joint stock company. The vehicles used were the Hualing Xingma brand.
In fact, before the official launch of the "Large Leasing" marketing model, Valin has selected several powerful dealers to engage in second-hand car replacement and leasing businesses, such as Guangzhou Lingma Automobile Trading Co., Ltd. and Hefei Anhe Automobile Co., Ltd. Service Co., Ltd. and Chongqing Huanyu Automobile Sales Co., Ltd. have achieved good results.
Difficult to push hard across the board Despite this, the industry is not optimistic about this new model. "The model itself is good and relatively comprehensive, but it must have sufficient strength to do it." Mr. Wang (a pseudonym), head of a sales branch of China National Heavy Duty Truck, said that the marketing model of "Large Lease" of HuaLing requires anti-risk capabilities. Strong dealer cooperation, and more powerful Waring dealers are not many. And now that large distributors have been controlled by liberation, Dongfeng, and heavy trucks, it is not easy for Valin to develop in these dealers.
To develop and cultivate new large-scale distributors, it is not easy to sell Hualing’s existing annual sales. "The truck market is too cruel. Most owners who can make this model with several hundred million yuan don't choose to invest in this bank." Mr. Wang further analyzed that domestic trucks have reached the point of "on the tonnage to sell" to a certain brand. 6 For instance, the 2 dump trucks sell more than 7 tons of cars for a price of 170,000 to 180,000 yuan, equivalent to more than 20,000 yuan per ton. "If the steel used in automobiles is 8,000 to 9,000 yuan per ton and the auto industry has driven so many related industries, there is no added value?" said Mr. Wang.
The "Large Lease" model is also risky. "A lot of logistics companies, like truck dealerships, are purses companies. They spend a few million dollars to register companies, and then rent a site to build a factory building. Several people are involved. The risks are not low," said Mr. Wang.
In addition, the disposal of used cars after the “Large Lease†model was implemented, and the disposal of used cars was also a problem. "Replacement is a one-to-one replacement. To replace a new car, you must accept a second-hand car. Now that the market is not in good condition, many users want to update the vehicle because the old car cannot be sold and cannot be removed. Dealing with old cars, and the replacement price of used cars is definitely lower than the price of the user’s own actions, and users feel that it is not worthwhile to use the old cars, and the price of new cars after replacement is quite low, and the risks involved are very high. "Jiang Haiping, General Manager of Longchi Group Lianyungang Automobile Sales Service Co., Ltd. told reporters.
Dongfeng dealer Mr. Li also stated that risk control is a problem. If several customers want to do it, it is more difficult to fully push it out. "A government in a local area will pass bridges, and logistics companies and manufacturers will sing operas. If the government is willing to come forward, several parties may benefit. However, the situation is different in different places, the credibility is also different, the risk is more different, and it is not easy to fully spread," said Mr. Li.
"In fact, CNOOC has also engaged in leasing business earlier. First, it set up a leasing company, leased the car to the customer and then rented it to the customer. The customer paid rent every month and the vehicle was returned to the customer after a certain period of time. But this is too insecure. The customer drove the car directly to the mountains and couldn’t find anyone. It was very costly,†Mr. Wang added.
The limited role can not stimulate demand. So, can this model play a role in the current market environment and compete for market share for Hualing? Jiang Haiping is also not optimistic about this: "I guess it will not play a role. Even if the market improves in the future, the role of this model is not great, I do not worry about how much impact will result."
"The key is the market is not good, there is no demand. The problem is in the demand, there is no customer, no marketing model is useless." Mr. Guo, a distributor, sells three brands of Sinotruk, Beiben and Valin, and he bluntly stated, “There is no market. The policy is useless. Our road bikes and mine cars are not good here. Now we don't want to give money to customers. They don't want to."
Jiang Haiping also believes that the "Large Lease" model is of little practical use and cannot mobilize the market. "Right now, the down payment for leasing and consumer credit has dropped to 10% or even lower, and it hasn't driven much sales. Now that demand is declining, it is not that consumers want to buy a car, but the purchasing power caused by insufficient funds or loans does not come down. "He believes that these marketing initiatives will not substantially change the market.
According to Jiang Haiping’s introduction, the shipping cost of coal pulled back from Inner Mongolia in Lianyungang fell from more than 500 yuan per ton to more than 300 yuan. The price difference for a ton of coal is 170 yuan, 10 tons is 1700 yuan, and the truck freight for a 35-ton truck is less than 5,000 yuan. In the past, the transportation environment was good. Before the coal was shipped back, it may have already been scheduled by the factory. Now it will not be able to sell it to Lianyungang. Therefore, the downturn in the transport market is not a result of manufacturers' price cuts or the introduction of some policies.
"This is a major environmental problem, and the adverse impact of the big environment on commercial vehicles is still invisible. Demand caused by the financial crisis in 2008 dropped, visible and tangible. This is a hidden policy of national regulation. The impact on all industries is very large, invisible and intangible." Jiang Haiping thinks.
Mr. Wang also believes that "Large Lease" is only a marketing model after all, and has a limited stimulating effect on market demand. "It may be possible to sell a few thousand more cars in a year, but it is not a big deal. In fact, heavy trucks and FAW Jiefang and Dongfeng Commercial Cars have explored similar models and may not be as comprehensive as Valin, but the results are not very good, "Mr. Wang added.
Other manufacturers did not push new measures. "Big situation is not good. Manufacturers will give some support from capital and profit sharing. There are no other new measures. Dongfeng is normal sales, dealers do not have the ability to change the environment, can only run more markets, improve. Quality of service," Mr. Li told the "Commercial Automotive News" reporter.
Jiang Haiping said that at present manufacturers have increased their support for financing and there are no other new marketing initiatives. "The key is that the market is not good, demand is decreasing, and improving financial support is not very useful, and it has little effect on sales promotion."
According to Mr. Wang, China National Heavy Duty Truck has no new marketing measures and still implements the financial policy at the annual business meeting. It only deals with inventory trucks that have been processed for more than six months, eight months, and more than one year. "Patch points" (such as 17-18 points for more than 8 months of inventory, that is, the initial payment ratio is floating 17% to 18%). Therefore, the current stock situation of China National Heavy Duty Truck is more ideal than the end of last year and the beginning of this year. "My side has more than 400 stock cars at the end of last year and has sold nearly 300 cars now. The situation in other regions is similar."
As the task of maintaining growth is urgent, the country has begun to introduce some stimulus measures and the market has recently picked up. "From the order of May and June, the truck sales department of CNHTC received almost 100 vehicles every day. The situation is also OK. Sales volume is picking up." Mr. Wang has been happy to watch the heavy truck market in the second half of the year. "Before real estate, railway and high speed Roads and other construction have slowed down or have been suppressed, the market has shrunk too much. The country needs to maintain growth, the real estate industry is the leader, to ensure that the GDP growth rate of 8%, it is estimated that real estate, etc. have to be let go."