Realizing localization is the only way for joint ventures
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In 2006, the domestic heavy truck market witnessed a growth rate of 24.8% growth. In 2007, the heavy truck market increased by 58.7%, and in the first three quarters of 2008, the heavy truck market was backed by a high growth rate of 26.8% for complete vehicles and chassis and 26.8% for tractors. The rapid development momentum has attracted worldwide attention. As a result, in the past two years, some of the frozen heavy truck joint ventures and cooperation projects have begun to recover and come to the forefront, and then the joint venture project news will continue to be exploding and cause a stark circle in the industry.
As we all know, overseas heavy truck giants have never missed this huge potential market, such as Man, Mercedes-Benz, Volvo, Mitsubishi, and Hyundai.
These giants of international commercial vehicles, in addition to selling high-end products directly to China, have also been continuously engaged in joint ventures with domestic companies to introduce technical cooperation projects. Coveted by China, the world’s largest final market, is becoming increasingly fierce. Over the past decade, these truck oligopolies have only been subject to restrictions imposed by China’s auto industry policy, the small and medium-duty market for heavy trucks, and the politicization of China’s own brands. As a result, many joint ventures have not been frequently frustrated, stagnated, or are stranded. In the early stages of retrenchment, this is, of course, the fact that the history and the business philosophy of Chinese and foreign companies have formed. However, as China's auto industry industry policy has gradually been changed by the market, everything is in the process of international development.
Since the signing of the joint-venture project between China National Heavy Duty Truck Group and Sweden's Volvo Truck Company in 2003, China’s heavy-duty truck joint venture has not been one of the successful cases of SAIC Iveco Hongyan, but there is almost no precedent for real success. why? Why is the heavy truck joint venture road in our country so difficult? How should more effective cooperation methods be adopted by heavy truck companies? This is a headache and a thorny issue in the automotive industry. Perhaps it is the relationship between water and natural resources. At present, China's comprehensive national strength is strong. The annual sales volume of the automotive market ranks second in the world. In particular, truck sales can match the market of 25 countries in Europe, and its market potential is huge. This huge demand has caused global commercial truck giants including Volvo, Dai-Ke, German Mann, Renault, Nissan, and Iveco to consistently not abandon the Chinese market, and at the same time, sum up experience and lessons in the event of devaluation and honorment. Adjust the strategy.
Today, it is not difficult for us to find that in some joint ventures, foreign bosses do not exclude local Chinese brands as they did before. Instead, they shift to accommodate and develop local products. Both sides have their own advantages and complement each other, and some of the technology of the heavy trucks The transfer of low-end products from local OEMs has even abandoned 100% of the right to speak. They have frequently sought joint ventures and technical cooperation with local Chinese parts and components companies, constantly changing new joint venture channels, and fully supporting the development of Chinese brands, becoming a multinational truck giant. China's new opportunity to re-establish itself.
The changes in the joint venture position of transnational heavy truck companies underscore the growth in the strength of local heavy truck companies. The mode of Chinese single brand operation is the localization of foreign companies, and the localization of vehicles is achieved in a relatively short period of time. The advantages are highlighted so that the true purpose of the joint venture can be achieved and a real win-win situation can be achieved. Practice has proved that the realization of localized production in China is still the only way for transnational heavy truck giants. It is difficult for joint ventures to rely solely on the operation of foreign brands to succeed in the Chinese market because Chinese consumers are currently unable to withstand the high price of berthing. This is also a lot of heavy trucks in the past. The main and important reason for the failure of the joint venture.
But the only model that has achieved great success is this year's joint venture between Foton Motor and Daimler. On August 7th, Foton Motors and Daimler AG held a signing ceremony for the signing of a global cooperation agreement for commercial vehicles in Beijing. The two sides will jointly build a joint venture company with 50%:50% equity in the medium-heavy-duty card, which marks Futian and Daimler. The cooperation between the two sides has created a new model for cooperation between Chinese and foreign auto companies. It has provided new ways and means for global auto companies to cooperate in the integration of resources. It has subverted the history of joint ventures of commercial vehicles in China, changed the foreign market leading joint ventures, and re-adjusted strategy and tactics. Have entered the model and the brand-based model. Beiqi Foton not only retained its own national brand, but also acquired the key technology of Mercedes-Benz. What is more remarkable is that the Auman brand will become a sub-brand of Mercedes-Benz commercial vehicles and become an important product for Mercedes-Benz to enter the low-end commercial vehicle segment. The trajectory of the joint venture between Futian and Daimler shows that the power of independent brand enterprises in China is increasing, and the tough posture shown by foreign parties in joint venture negotiations has changed significantly. Prior to this, SAIC, Iveco and Chongqing Hongyan established a joint venture company in 2007 to implement a dual-brand operation. Both Iveco and Hongyan brands exist at the same time. At the same time, the joint venture will also use Iveco's technology to transform Hongyan products. Dual brands exist at the same time. This is the case where the first exception has been adopted by the Chinese and the position has undergone significant changes.
As we all know, China's commercial vehicles, especially the truck market, have always been monopolized by independent brands. The annual import high-end heavy truck market size is about 3,000 or less, and it is less than 1% of the total annual sales volume, while domestic and low-end self-owned brand products occupy 90 More than 5% of the market share, in the production of commercial vehicle engines, domestic engines also occupy a monopoly of about 85% of the same, the overseas transnational giants have long been planning in the field of commercial vehicles in China to divide forces, but it can not be changed China's commercial vehicle market environment and pattern.
In addition, the difference in concept and policy guidance of heavy-duty truck consumption at home and abroad has also led to a large gap between the cost-effectiveness of imported models and that of domestic consumers. For example, in Europe and the United States, the fuel consumption and emission requirements for heavy trucks are much higher than the domestic policy standards. Therefore, the imported vehicles in the engine and exhaust system configuration must be much higher than the same type of heavy trucks in China, resulting in the introduction of models in cost-effective Relatively inferior. This means that for Chinese consumers who want to earn a living by car to feed their families, they would rather choose a domestic "money-making machine" that is cheap and cheap at the time when there is no policy requirement. Because foreign brands are concentrated in high-end products, it is a relatively advanced product for China's heavy-duty users. Not only is the price more expensive than it is impossible to exceed the overload limit, so it deviates from the price and practicality that Chinese consumers generally agree with. As a production and wealth-enriching tool, China's heavy truck products only focus on practical technologies and simple functions. They do not require comfort and require low prices and a general consumer psychology of “less investment and quick resultsâ€. This has caused the current market demand to dominate the low-end products, high-end product demand is very small. In contrast, western developed countries use high technology, high comfort, and high security as the goal. Therefore, they are expensive and generally equivalent to 3-4 times that of domestic products. Therefore, the domestic market has been in demand for a very small number of special industries.
Looking at the development trend, China's heavy-duty truck product technology will not change with the international market. However, the upgrading of market structure at the moment is a very slow process. Joint venture brands can survive and develop only if they adapt to the Chinese market “soilâ€, especially to speed up. Indigenous parts and components, such a configuration system can reduce its procurement costs. At present, China's joint venture heavy truck technology is gradually in line with international standards, and product replacement is also accelerating. It is expected that in the next ten years, the joint venture brand heavy trucks will only have high-quality advanced engines, transmissions, axles and other high-quality brands and electronics. Such advanced technologies as intelligentization, intelligent management systems, driver information systems, global satellite positioning systems, electronic braking systems, vehicle distance control systems, and skid prevention control and lane line control systems are the winners and magic weapons in competition. The domestically-built joint venture brand heavy truck can only keep pace with the trend of the times and be invincible in order to be bigger, stronger and better. 