Fang Hongwei: 700,000 Heavy Truck Markets in 2015

At the Shaanxi Automobile Heavy Truck Business 2015 Annual Meeting, Fang Hongwei, chairman of Shaanxi Auto Holdings, released his views on the 2015 market. His views are unique and his opinions are profound. The reporters have recorded special records for readers' reference.

 

The macro situation is not good or bad

“We think the macro situation is not good or bad.” Fang Hongwei said that the macro is often objective and there is no way to change it. The macro can only indicate opportunities and risks. Success or failure depends on the company's own capabilities and qualities. What companies need to do is assess the situation, seize opportunities, and avoid risks.

“The good weather does not mean that you can make good profits.” He cited Shaanxi Auto's own example: In the rapid development of the market, Shaanxi Auto's heavy trucks often remain unchanged, but when the market is in trouble, enterprises and channels are in a similar situation. Market share has risen steadily. Therefore, the market performance depends on the ability of the company itself.

At present, China's economy has entered a new normal and economic development has shifted from high-speed to high-speed, which is also a strategic choice for the Chinese economy. The new normal state means that the resources for the rapid development of China's economy have been used up. The new normal is to play a role in the market and to give the market a place where it can function.

There are several characteristics of the new normal economy: speed - "from high-speed growth to high-speed growth," structure - "continuous optimization and upgrading of economic structure", power - "from the factors driven, investment driven to innovation driven."

Fang Hongwei believes that the completion of the new normal has challenges and risks, but the government can still do it properly. At the same time, the new normal also means the survival of the fittest. “The era of rapid growth is over. If anyone can adapt, they will be able to get new students. If they cannot adapt, they will be eliminated. Xu Xiaonian said, don’t pay too much attention to the macroeconomic situation. If you want to think of your own business, you must think of your own tasks and think of yourself. "The core competitiveness is to make yourself stronger than anything else." He said that whether he can do his own thing and whether he has core competence determines whether the company can adapt to the changing environment.

700,000 heavy truck market in 2015

The total sales volume of heavy trucks will stabilize at around 700,000 vehicles, which is Fang Hongwei's judgment for 2015 heavy truck market.

Fang Hongwei believes that even if there is a slight drop, the decline will not be too great. “The economy will not plummet, the government will give it up, cultivate market players, and at the same time, changes in the economic growth will lead the healthy development of the industry, digest the pressure and waste caused by overcapacity, and guide the business to shift from extensive to lean. In the past, the industry was too hot and expanded. Capacity has been continuously entered by companies, but carefully, the industry does not have core capabilities. The new normal makes the development of the industry more healthy, making economic restructuring and restructuring possible.” He said.

Specific to the heavy truck industry, the new normal will bring several changes to the heavy truck industry: First, the structure of product and market demand changes. The increase in life and consumer demand will bring about changes in the overall logistics and transportation industry, which will in turn lead to changes in the demand structure of heavy trucks. Sales of high-speed standard-loaded logistics vehicles are expected to continue to climb in 2015. The reduction in the rate of investment in fixed assets will reduce the proportion of dump trucks.

Second, environmental protection and energy conservation are both technical and product-oriented, but also produce realistic and huge market demands. Fang Hongwei said that the trend of environmental protection and energy conservation technology will also be transformed into market demand. The implementation of natural gas trucks, yellow-for-green, and state-four will all bring about new demands for the transformation of consumption structure. This demand will neutralize some of the heavy truck demand caused by the economic downturn. cut back.

Third, the shrinking urban-rural disparities, the accelerating pace of urbanization, and the increasing share of residents' income in GDP have made consumption growth a new growth point and a driving force for sustained market development. This will also have a positive impact on the heavy truck market.

Service is Blue Ocean

Innovation is the inevitable choice for the heavy truck industry under the “new normal”.

The new normal refers to the transformation of the industry's driving force from its original elements and investment into innovation. Fang Hongwei believes that innovation under the new normal will become a kind of self-consciousness and an inevitable choice for enterprises. The transformation of Shaanxi Auto to a service-oriented enterprise is the result of innovation. From the past, it has made a good product shift to a good service. This is an inevitable choice based on demand.

“Innovation is driven by demand. When everyone participates in this year's business conference of Shaanxi Auto, it will feel that Shaanxi Auto is getting closer to the customer and closer to the front of the consumer. The recognition and recognition of the demand becomes Our important content, without understanding, there is no way to innovate, there is no way to create value for customers, with demand, innovation has a service object.” Fang Hongwei said.

For service-oriented manufacturing, Fang Hongwei has a good explanation, summed up as "demand customers, two concerns," that is, the discovery of demand, meet demand, create demand; service-based manufacturing is a customer-centric enterprise; service-oriented enterprise operations The model is to focus on the entire product life cycle and focus on the entire process of customer operations. This brings about comprehensive changes in technology, products, marketing, services, and channels. Technology is built around customer value enhancement. Products move from reverse to positive. Marketing changes from experience to experience marketing. Services change from maintenance and sales to “wheel rolling”. (Shaanxi launched a new service platform), channels from the game to real cooperation.

The idea has changed, and the industrial chain has become longer and richer, opening up a new world. In the past, everyone was fighting in the incremental market and it was hard for you to die. The stock market did not pay attention, and this was the Blue Ocean. Fang Hongwei believes that service is the Blue Ocean in the heavy truck industry. Customers have so many demands, but no one provides complete services. From large products (product services) to large services, this will become an opportunity for Shaanxi Automobile.

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