While giants such as Juli and Shuangli suffered a sluggish market and fell into bankruptcy on the edge of low-speed truck (agricultural vehicle) giants, on February 24th, China Wind Farm Group, the largest producer of agricultural vehicles in China, eventually received a commercial vehicle approved by the National Development and Reform Commission. Production qualification. Although the five-year dream of the Fengfeng Group has finally become a reality, in the face of the dramatic light-card market, industry insiders pointed out that although the Wind Group's transformation light trucks are desperately forced, they are still uncertain.
In five years, he wished to manufacture his own brand of light truck products. It has been five years since the wind was waiting for this time.†Lin Lianhua, deputy general manager of Shifeng Group, which is responsible for the commercial vehicle production program, has an extraordinary calm in his words.
Lin Lianhua told reporters that the Shifeng Group is currently ready. Only in April this year, the National Development and Reform Commission announced the announcement of the automotive product catalog, and the light trucks can enter production. This also marks that, as the largest production capacity of agricultural vehicles in China, Shifeng Group has begun to transform itself into an auto manufacturing company that focuses on the production of light trucks.
Established in 1993, Shifeng Group has formed an annual production capacity of 1 million three-wheel vehicles (three agricultural vehicles), 200,000 low-speed trucks (agricultural vehicles) and 1.2 million engines. In 2005, Shifeng Group achieved sales revenue of RMB 11.6 billion. The production and sales volume of low-speed trucks ranks first in the industry in the same industry for 6 consecutive years, and ranks first among China's top 100 agricultural machinery companies for 5 consecutive years.
Compared with the glory of the agricultural vehicle market, the Fengfeng Group's light-hearted dreams are frustrating. In 2002 and 2003, when the winds once extended their cooperation to Yantai Automobile Manufacturing Plant and China National Heavy Duty Trucks, they intended to switch to light-card manufacturing. However, they were all constrained by the national policy and ended up with no results.
Until 2004, the agricultural vehicle market drastically changed, and the Group that was faced with a life and death choice could no longer be satisfied with the status quo.
On May 1, 2004, the state implemented a new "Road Traffic Safety Law of the People's Republic of China." Although the agricultural vehicle has a "name" of the car, it has directly led to an increase of nearly 2,000 yuan per year in the cost of agricultural vehicles, accounting for 40% of the vehicle price. The production and sales volume of national agricultural vehicle manufacturers represented by Shi Feng, Juli, Futian, etc. has dropped sharply by more than 60%.
Either stick to the position or find another way out. The conversion of the light truck seems to be the only way out at that time. In December 2004, Shifeng Group did not hesitate to invest heavily in the company's registered capital of 2 billion yuan, and invested half of the group's human resources in the establishment of Shandong Shifeng Commercial Vehicle Co., Ltd., which can be described as desperate.
The future is uncertain. "In 2006, when the Wind Group will launch five models of self-developed light trucks, it is estimated that the production capacity will reach 10,000. The five models will have a load of 1-1.5 tons at a price of 3-5 million yuan." Lin Lianhua said, “In a longer period to come, the production focus of the Shifeng Group will gradually shift from low-speed trucks to light trucks. The final production capacity of Shifeng Commercial Vehicle Co., Ltd. will reach 80,000 vehicles per year before entering the light-card market. 5 people."
However, the increase in output does not mean that it will gain market recognition. “Because of the changes in national traffic regulations, it is more difficult for the Wind Farm Group, which has the largest production capacity of agricultural vehicles, to transition than the average company.†Zhang Xin, an analyst at Guotai Junan, believes that the key to successful transformation is the marketing strategy.
The first thing we face in the late hour is that there are more than 40 companies in the field of light trucks, and there are many well-known manufacturers such as Beiqi Futian, Jiangling, Qingling, Dongfeng, Jianghuai, and other well-known manufacturers firmly control the economical light truck 80 % or more of market share. The largest production capacity of Beiqi Futian is 250,000, and Dongfeng and Jianghuai are also more than 80,000.
Zhang Xin pointed out that from the point of view of the current price of wind products, it is the low-end product with the most intense light-card competition and the most meager profits. The market channels of the Shifeng Group have always been mainly in rural areas. How to quickly rise in large and medium-sized cities within a short period of time will be the biggest test facing the current situation.
However, the Shifeng Group was very firm in its transformation against the trend. Lin Lianhua told reporters that in accordance with the strategic planning of the auto industry of the Wind Group, the economical car sector is also part of the grand blueprint of the times. According to the relevant regulations of the country, passenger car manufacturers must have more than three years of commercial vehicle production experience. Therefore, when the wind has formed a certain scale and experience in light trucks, it will use light trucks as a springboard to strive to form the production capacity of economical cars in the next five years.