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The production and sales figures for the first quarter of 2006 showed that a few strong manufacturers such as FAW, Dongfeng, Foton, and Changan have performed well and have begun to produce better responses. Among the highlights, Foton Motors has produced production and sales in the first quarter. The best performance for the same period, which was up 10% over the same period last year, squeezed into the top three of the entire automotive industry.
According to industry sources, manufacturers such as FAW, Dongfeng, Futian and Changan have benefited from the warming of the commercial vehicle market in the first quarter. The overall target market for commercial vehicles at the beginning of the year increased slightly year-on-year, and the overall market gradually emerged from last year's “coolness†and finally showed signs of rejuvenation. Among them, the light-duty truck market still continues to grow steadily. Although the medium- and heavy-duty trucks experienced a slight drop from the same period of last year, they have shown a warming trend since March. It is undeniable that Chinese truck manufacturers’ resistance to “cold†is rapidly increasing, and the prospects for the truck market this year are promising.
Truck market: showing cold weather
In 2005, due to soaring crude oil prices, over-implementation of oversight and over-limit policies, and national economic macro-control, the medium- and heavy-duty truck industry encountered an unprecedented “cold†situation, with the overall market falling by 33.19%. Despite the soundness of the light-duty truck market, the overall truck market still suffered the most “cold†year in recent years. It did not improve until the end of last year.
The sales data for the first quarter of this year shows that the truck market has begun to show signs of recovery, and overall sales volume has increased by 0.3 percentage points compared to the same period of last year, with a slight increase. Among them, light trucks continue to show a rising trend. The medium and heavy truck market is a leader in the performance of the leading companies and has played a major role in the overall recovery of the truck market. For example, Foton Motor's sales in the first quarter are expected to increase by more than 10% year-on-year, and its market share increased by nearly 3% year-on-year. Its Auman heavy trucks, in spite of a 19.3% year-on-year decline in rivals, are expected to increase sales by 8.5% year-on-year. % Successfully staged a good show against the wind.
However, it is worth noting that the current truck market has not yet fully “heated†and the 3rd-line brand has experienced a decline of nearly 20% compared with the same period of last year. The outstanding performance of individual manufacturers like Foton Motors and Dongfeng can only indicate the “resistance†of leading companies. The ability to cool is rapidly increasing, and how to prompt the truck industry to enter the eruption after the adjustment period as soon as possible remains a concern for truck manufacturers.
Truck Manufacturers: "Cold-resisting" Capabilities Swell
The impact of macro policies on the commercial vehicle market is enormous, but after the 2005 adjustment period, the market will have new opportunities. How to "break through" in the face of a huge pressure on the market environment, how to improve their "cold resistance" ability? Foton Motor has taken the initiative to adjust itself from last year. The strategic transformation from expansion to intensional development to improve product competitiveness to achieve new rapid growth is a very representative case.
Foton Motor fully enhances its independent innovation capability, integrates the industrial chain and joint innovation, and increases the proportion of high-tech and high-value-added products. In the first quarter of 2006, Europe’s new series of Auman ETX, Omar and other heavy fists continued to bombard the market. While enriching its product line, it also meets the consumer needs of different levels of consumers, continuously creating excitement and stimulating the truck market.
In terms of sales channels, Foton Automotive's innovative flexible network has stimulated the enthusiasm of dealers. In the face of market trials, Foton Motor's terminals have displayed strong sales capabilities and high loyalty.
In order to consolidate the market, Foton Motor launched a brand of worry-free services in the face of consumers, and formed a good reputation among consumers. This in turn further promoted sales, and sales growth is justified. According to statistics from Foton Motor Market Management, secondary purchases and recommended purchases from Futian old customers accounted for 36.8% of its total sales in the first quarter, which cannot but be attributed to its quality construction and quality service.
Market Prospects: Suizhong Forward
In 2006, as the initial year of the “Eleventh Five-Year Planâ€, China will deepen the development of the western region, rejuvenate the old industrial base in Northeast China, and build a new socialist countryside. The macroeconomic environment provides a good space for the development of the truck market.
According to industry experts, the country has already begun to control the scale of infrastructure construction. The lagging impact it will bring will obviously affect the truck industry in the next few years. The truck market in 2006 will still be in the adjustment period.
However, the Chinese truck market has developed into the world's largest light truck market, and it should grow with the growth of China's GDP and the development of economic integration. It is unlikely that the “cold period†will continue forever. It can be predicted that due to the appropriate strategy of leading enterprises such as Foton Motors and Dongfeng, they have quickly entered the "post-adjustment period" in a better state and have shown optimism. It is believed that as long as commercial vehicle manufacturers actively respond and adopt appropriate development strategies, the rapid recovery of the whole industry will not be far away. In the next 3 to 5 years, the cakes in the Chinese truck market will become larger and larger.
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