International giants 觊觎Changing the autonomy of commercial vehicle companies in the Chinese market
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Xinhuanet.com Jinan, November 26 Special Issue: International Giants 觊觎 Market in China Self-Consciousness of China's Commercial Vehicle Companies Need to Awaken Xinhua News Agency reporter Jiao Guodong
This year, a number of domestic commercial vehicle companies have joint ventures with giants of multinational commercial vehicles. Behind the tide of Sino-foreign joint ventures in commercial vehicles, it is actually a signal for international giants to fully penetrate the Chinese market. Facing the gap with the highest level in the world, the awareness of independent innovation of commercial vehicle companies in China must be truly awakened. China National Heavy Duty Truck Group holds the right to independent innovation through the “absolutely controlling†equity setup and successfully entered into a joint venture with the world’s third-largest truck company, Man Corporation. This is exemplary and worth learning.
International commercial vehicle giants have seen the Chinese market
On July 15, China National Heavy Duty Truck announced the signing of a long-term strategic cooperation agreement with the world’s third-largest heavy truck manufacturer, German Man. On August 30th, China FAW and the US General Motors Corporation each took a 50% stake and a 30-year joint venture. During the operation period, FAW-GM Light Commercial Vehicle Co., Ltd. was jointly established; on September 28, Anhui Jianghuai Automobile Co., Ltd. signed a joint venture cooperation framework agreement with Caterpillar and US Navitas.
For the current wave of joint ventures between Chinese and foreign commercial vehicle companies, domestic commercial vehicle companies believe that this is a signal that multinational commercial vehicle giants have fully penetrated the Chinese market. According to Tong Jingen, executive director and chief economist of China National Heavy Duty Truck (Hong Kong) Co., Ltd., on the one hand, the giants of multinational commercial vehicles are trying to fast under the background that the domestic vehicle market is dominated by foreign brands and domestic brands cannot really dominate in the short term. The goal of occupying China’s commercial vehicle market has been very clear; on the other hand, under the circumstances that there are huge commercial vehicle demands in the Chinese market, especially in the rural areas, the giants of transnational commercial vehicles are anxious to share this piece of cake through cooperation with domestic brands. .
It is understood that China's commercial vehicle market has maintained an average growth rate of more than 10% for many years. Even in the global economic downturn of 2008, China's commercial vehicle sales still increased year-on-year. Since the beginning of this year, the off-season of the commercial vehicle market in our country has been more prosperous than in the off-peak season. In the first 10 months, domestic commercial vehicles produced 2,744,600 units and sold 2,701,100 units, up 20.73% and 19.14% respectively year-on-year. This "attractive" market is attracting capital from all sides.
However, the industrial characteristics of China's auto makers will suffer greater impact. This is because, unlike the monopolistic markets of four or five commercial vehicle companies in Europe and the United States, there are many commercial vehicle companies in China. The decentralized distribution state greatly weakens the company's ability to resist punching. Although domestic commercial vehicles are generally lower in price than their imported counterparts in terms of equivalent operating capacity, they are more economical and their own brands have long dominated the domestic commercial vehicle market. However, after the cross-border commercial vehicle giants have penetrated China’s commercial vehicle market through capital operations through joint ventures, the market landscape may change.
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