The GAC Group, which took the lead in the merger and restructuring of the domestic auto industry, took another substantial step on the road to expansion. Only this time, Guangzhou Automobile's direction was selected in its largest short board - commercial vehicle sector.
North-South layout
On the 21st and 22nd of September, on a day-by-day basis, Guangzhou Automobile commercial vehicle carrier set sail on a high-profile day, Guangzhou Automobile Co., Ltd. and Hino Motors held two launching ceremonies in Guangzhou and Shenyang. The Hino Heavy Truck 700 Series and the Hino Bus Officially put into operation. At this point, China’s commercial vehicle market has added the aggressive player of Guangqi Hino.
According to the plan, GAC Hino Guangzhou Guangzhou Chemical Factory's first-phase construction area will reach 80,000 square meters, with an annual production capacity of 20,000 heavy trucks and 30,000 light trucks, with an annual production value of 10 billion yuan. Before this, from the agreement reached between GAC Group and Hino Company, the two parties cooperated to carry out adaptive development for the Hino 700 series heavy trucks for the Chinese market. In the original Hino 700 series heavy trucks, about 1,100 kinds of parts and assemblies, design changes were made to nearly 840 parts and assemblies. Of course, there is only one purpose, which enhances the adaptability of Guangzhou Automobile Hino 700 Series heavy trucks in the Chinese automobile market.
On the following day, GAC Hino (Shenyang) Automobile Co., Ltd. held a ceremony to establish a new car off the assembly line in Shenyang Economic and Technological Development Zone. Consistent with previous reports, GAC Hino (Shenyang) Automobile Co., Ltd. added a registered capital of 500 million yuan to the registered capital. It was 1.004 billion yuan. Among them, GAC Hino took up 90.2% of the registered capital. The company adopts Hino technology to produce 7-12m large and medium-sized bus series products. It will gradually increase the annual production capacity to 4,000 passenger cars and 5,000 chassis based on the restoration of the existing annual production capacity of 2,000 buses and 5,000 chassis. It will be developed as one of the large commercial vehicle manufacturing bases of Hino Motor Co. and Guangzhou Automobile Group.
At this point, Guangzhou Automobile Group's commercial vehicle strategic layout announced for the time being. A similar layout feels familiar. Prior to this, SAIC Motor Co., Ltd. continued its development of Shanghai Huizhong on the basis of the development of its Shanghai base. West Chongqing was recruited, and Iveco and Hongyan jointly formed a joint venture with Hongyan, basically completing the layout in the commercial vehicle sector. Compared with the powerful SAIC Group, the GAC Group's layout in commercial vehicles has similar expenditures in the plot, but there are also many Cantonese-style features.
First internal integration
Although it has been among the top six automotive groups in China, compared with the top five groups, GAC Group was basically excluded from China's commercial vehicle sector. For GAC, if it is impossible to achieve breakthroughs in the field of commercial vehicles in the era of non-return, it will not only fail to complete the transcendence of the front companies, but may also be caught up by latecomers. This has become even more pressing after the country has issued a plan for the adjustment and revitalization of the auto industry.
From the perspective of product structure, BAIC passenger vehicles are weak and Changan is relatively balanced. For GAC, its commercial vehicles are obviously short. In 2006, GAC passenger vehicle sales accounted for 98.2% of the group's total sales. In 2007, it was 99.07%. In 2008, this figure was 99.55%. GAC commercial vehicles are almost “extinctâ€. Behind the rapid development of Guangzhou Automobile Group, the real supporting force is Guangzhou Automobile Passenger Vehicle. Guangzhou Honda and Guangzhou Toyota are almost the same as the entire GAC Group, while Guangzhou Automobile Commercial Vehicle Company is almost always in a shrinking state. At this time, for a comprehensive large-scale automobile enterprise group such as GAC, the balanced development of passenger cars and commercial vehicles is necessary. Making every effort to enlarge and strengthen commercial vehicles has become a necessary way for GAC to achieve the goals of the 11th Five-Year Plan.
In 2007, GAC Group reorganized Guangzhou Yangcheng Automobile Co., Ltd. and Shenyang Shenfei Hino Automobile Manufacturing Co., Ltd., and established GAC Hino Motor Co., Ltd. on this basis. After the divestment of Isuzu from Guangzhou Isuzu bus in 2008, Guangzhou Automobile Group used Guangzhou Yuelong Bus Co., Ltd. with the changed name and Guangzhou Junwei Ke [Review Picture Forum] Car Co., Ltd. to integrate to form Guangzhou Automobile Group Bus Co., Ltd. It covers a wide range of urban buses, road buses and group buses with various powers, including hybrids, ranging from 6 to 12 meters. It has become one of the few domestic bus manufacturers with a complete product line in China. First of all, it has completed the integration of internal commercial vehicle resources and has become the only way for GAC to develop commercial vehicles.
Remarketing segments
After completing the internal integration and formally entering the commercial vehicle field in all directions, a real problem has been placed before the decision makers of GAC, which is now relatively saturated and has suffered a severe commercial vehicle market in the financial crisis. How does GAC Hino Win? Food has become a key point. Soon, GAC Hino found a market space for its own commercial vehicle products. In the increasingly complex market environment, Guangzhou Automobile Hino 700 series heavy trucks are priced between imported products and domestic high-end products. On September 21, the 700-series heavy trucks of the same line had a total of 8 models and 28 types of specifications. The "Hino" LOGO was attached, and all the Hino engines were assembled, priced from RMB 340,000 to RMB 602,000.
Li Shao, executive deputy general manager of Guangzhou Automobile Co., Ltd., believes that this price can meet the needs of its target customers. He said: "Our price is about 30% lower than that of imported cars, but our quality and reliability are basically the same as those of imported cars, and even in some respects it is more than imported cars."
According to Guo Wuxiong, deputy general manager of GAC Hino (Shenyang), passenger cars produced by GAC Hino (Shenyang) Co., Ltd. will be mainly passenger-carried, with prices ranging from 600,000 to 800,000 yuan in the medium and high-end markets to provide tourism, group shuttles, etc. In the future, the construction of a channel based on 3S shops will be formed. As the factory is still in its infancy, the company will establish itself as a brand target that customers can rely on. With high quality, high reliability and cost-effectiveness, the company will create a long-standing, highly-reliable and reliable reputation among its users.
A widely accepted view is that the market share of the commercial vehicle market in China, especially the heavy truck market, is more than 85% of that of cost-effective domestic brands, compared with the dominant situation of joint venture brands in the passenger car market. . Obviously, the goal of Guangzhou Automobile's Hino is to seize the market gap between domestic high-end commercial vehicle products and imported high-end commercial vehicle products. For the current market positioning of GAC Hino, GAC Hino, represented by Li Shao, appeared confident. This also seems to be a strategic choice for GAC Group to break through the market for its commercial vehicle brands.
However, this position has not been widely recognized. After seeing the price of its 700 series heavy trucks, a local parts supplier focusing on Guangzhou Automobile's Hino was a little disappointed: “The seller is expensive, and it is difficult for domestic users to accept it. (Manufacturers) must consider China’s national conditions.†One fact is that Previously, Jinan Huawoo, a joint venture between Volvo and China National Heavy Duty Truck Group, insisted on a "high pricing" strategy, which was difficult for the market to accept. As a result, both parties to the joint venture had to end up with a split. The only Japanese-owned joint venture commercial vehicle company, Dongfeng Nissan Diesel, had a higher production cost and a much higher price than its counterparts. Therefore, production and sales have also been at a low level for several consecutive years.
In this regard, Li Shao said: “We have an in-depth analysis of the actual situation of the market last year, including the previous situation.†Cost-effective is one of the characteristics of GAC Hino products that he has always emphasized. Obviously, GAC Hino hopes to win a place in the domestic heavy-duty truck market with a more pragmatic and highly localized strategy. It also hopes to learn lessons from previous joint venture failures in the commercial vehicle sector. The 700-series heavy trucks that were put into operation at the chemical plant have increased significantly. The localization level, insisting on a high localization strategy is the realistic choice of GAC under the domestic commercial vehicle development pattern.
Channel first
As a latecomer, the construction of the channel became a flaw in the development of commercial vehicles for GAC Hino. Compared with other commercial vehicle companies that have basically completed and relatively mature sales networks, Guangzhou Automobile Co., Ltd. and Hino must take a different approach in this aspect.
Previously, the dealers of a few commercial vehicle products of GAC were mainly concentrated in the province where the production was located and its neighboring regions, and were widely distributed within the province, involving major cities in the province, and only 3 to 5 provinces outside the province. Dealer outlets are mainly located in economically developed areas such as Shandong and Zhejiang.
Industry insiders told the “Car Watch†special correspondent that from the perspective of the commercial vehicle as a means of production rather than a consumer product, the rapid development of infrastructure such as the Midwest is the main source of market demand for commercial vehicles, and commercial use in these areas. The lack of vehicle sales channels has become a problem that Guangqi Hino has yet to solve.
GAC Hino clearly did not fully agree with this person's point of view. According to its planning, its first layout is based on the existing commercial vehicle sales network to further improve the network. Different from other domestic commercial vehicle brand channels, GAC Hino's product sales will be introduced into Japan's commonly used 3S store sales service model, and will establish a trinity of “car sales, after-sales service, and parts supply†centered on after-sales services. The new 3S shop sales service network.
Effectively use existing resources to achieve a point and face, providing our customers with timely, efficient and thoughtful services. This has become the core competitiveness of GAC Hino in the face of a strong sales network for other commercial vehicle companies. At present, GAC Hino 3S shop after-sales service network has extended to the Pearl River Delta, the Yangtze River Delta, Jingjintang and large-scale mining, oil fields and other major national economic areas, the current scale has reached more than 30. According to its plan, it will continue to expand to other regions in the country in the future.
In addition, according to previous media reports, GAC and GIO have reached preliminary cooperation intentions, GIO micro-vehicle or will be labeled "GAO GIO" brand. In real time, GAC Group's three major product lines including heavy trucks, passenger cars and mini-vehicles are available, and GAC Commercial Vehicles tend to be full-scale. However, for Guangzhou Automobile Group, whether it can replicate its miracle in the field of passenger cars is still an unknown.
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