The first HOWO brand passenger car produced by CNHTC will go offline at the end of April and will be delivered in bulk to Jinan buses.
Li Fujun, general manager of heavy-duty trucks division, told reporters: "This is for the production of 110 orders for Jinan buses. In addition to this order, we currently have an order from Datong Bus."
First cut into the bus market
This batch of 12-meter buses uses the HOWO brand, the price of 400,000 to 500,000 yuan, for the secondary stepping low floor, optional Steyr 266-horsepower engine, Howard's disc front axle and hub rear axle and The gears produced by the big teeth realize the complete production of the three main assemblies of the engine, chassis and transmission.
Due to its inception, the heavy-duty truck business unit will use the Shandong market as a breakthrough, which will add more smoke to the highly competitive Shandong market. Li Fujun told reporters: “At this stage, we mainly aim at opening up the market for public transport in some cities in Shandong. At the same time, we will work hard to build a bus marketing team to learn from other colleagues and hope to make a difference in this area. At present we are apart from this model. In addition, there is a 10m natural gas bus that is in the trial production stage. It is expected that the permit will be available by the end of May and early June."
Heavy truck is still in its infancy, so the recent goal does not fully consider profitability. The reason for entering the passenger car sector is that, in the near term, the production level and production capacity of parts can be improved. In the long run, the Chinese bus market still has enormous potential, and heavy-duty trucks are very optimistic about the market. "This year, our production and sales target is 700 to 800 units, and the mid-term goal is to reach 10,000 vehicles. The long-term goal is to become one of the strongest bus companies in China. It is time to harvest the fruits," said Li Fujun.
Passenger car, heavy truck has advantages
The history of heavy-duty truck production can be traced back to the mid-1950s. At present, there is also a passenger car company under the CNHTC Group, namely China National Heavy-duty Truck Group Jinan Bus Co., Ltd. Therefore, heavy-duty trucks are not short of talent and technology in the passenger car. During the interview, Li Fujun emphasized that this time the heavy-duty truck produced passenger cars only to be regained instead of entering for the first time. “Compared with general passenger car companies, China National Heavy Duty Truck Group has an absolute advantage in core technology and cost control, because SINOCHEM has the production capacity and R&D capability of engines, chassis, transmissions, etc. The correlation between passenger cars and heavy trucks is high. Their chassis and most of the bearings are the same. Many of CNHTC's core technologies can be used in passenger cars, which is not owned by any bus companies. Our current position is to make medium and high-grade bus buses because if If the grade is too low, we cannot use the advantages of our core technology as a core technology.In addition, our production scale is very high, so we can obtain lower prices when purchasing raw materials. Achieved, so our raw material costs are much lower than they are, so that we can have more initiative in the competition."
Not only that, the sales network of CNHTC, especially the marketing network of overseas markets is also an advantage. According to Li Fujun, SINOTRUCK trucks have a very good reputation in Africa and Southeast Asia. When customers heard about heavy trucks building passenger cars, some people expressed interest. In addition, CNHTC has a huge supporting service system throughout the country. Heavy-duty trucks can use this network and maintenance services are very convenient.
Cooperation with Man becomes inevitable
Here can not help but mention the heavy truck partners Germany Man, Li Fujun told reporters: "Do not forget that we have an important partner, that is Mannmann's technical level and reputation in the bus industry is well known, we and Man. The cooperation in the passenger car can be said to be inevitable, only a matter of time. After the cooperation between us and Man on the truck is on the right track, we will start cooperation on the bus." And Man's strength in the passenger car will undoubtedly help Steam power.
The heavy-duty truck chose HOWO as the brand of the new offline bus. In fact, it takes into consideration that HOWO trucks have a certain influence in the Chinese market and even in the international market. The HOWO brand is more easily accepted by the market and users. If you want to use a new brand, you need to advertise from scratch and increase consumption. Li Fujun said: "This phenomenon is very common in Western large-scale automobile groups, such as Mercedes-Benz, Mann, Volvo, etc. Their trucks, passenger cars and even passenger cars share a brand, and these brands enjoy a high reputation. Of course, as a passenger car brand, HOWO needs some accumulation and precipitation."
The prospects are bright?
In fact, SINOSTEEL is not the only truck company that has devoted itself to the production of passenger cars. In recent days, Valin and Beiben have announced that passenger car production projects have been launched. Automobile groups such as FAW and Dongfeng, which already have bus services, have not been in the passenger car market. So why do heavy gas continue to take the old road of FAW and Dongfeng? Industry sources told reporters that apart from owning the advantage of producing passenger cars, CNHTC can use this to enrich its product range, further improve the industrial chain, and become a large-scale commercial vehicle group.
View related topics: China National Heavy Duty Truck Breaks Monthly Sales Record for National Heavy Truck Industry
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