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Prosperous industries have never lacked spoilers. On September 12, the first 4S shop of Anhui Hualing Automobile Co., Ltd. (hereinafter referred to as “Valin Autoâ€) officially opened in Panyu, Guangzhou. The company’s sales director, Wang Yan’an, said that 5 to 6 4S will be established in Guangdong next year. shop. On the same day, the 41 heavy trucks of Valin Automobile held a delivery ceremony in Leizhou, Guangdong, which was the first time that the company’s products had entered Leizhou, Guangdong.
A person in charge of the Overseas Business Department of Valin Motors stated that with the acceleration of domestic and foreign markets, Valin Motors is expected to become the first camp of the domestic heavy truck industry in the next few years. This camp is currently operated by Sinotruk, Shaanxi Heavy Duty Truck and Foton. Car occupation.
The latest achievement of Valin Motors is rare even in the entire commercial vehicle industry. In 2006, the number of Hualing exports was only 600. As of this year, orders from foreign countries have reached 2,000 units. If these orders are fulfilled, this year, Valin's export growth will exceed at least 200%, while domestic sales will increase year-on-year in the first half of this year. %.
Target 100
The first 4S shop of Hualing Automobile - Guangzhou Lingma Store is located in Shiqiao, Panyu District, Guangzhou. The establishment of this store has attracted more than 30 first-tier dealers and more than 300 Hualing heavy-duty trucks in China.
Lingma store covers a total area of ​​more than 6,000 square meters, has 800 square meters of large exhibition halls and 1600 square meters of maintenance workshops, set vehicle sales, after-sales service, parts supply and information feedback in one. The 4S shop model, which was funded by dealers and directed by Valin, was responded to by other dealers. In the afternoon, dealers proposed a 4S shop.
In response, a person in charge of marketing at Hualing Automobile Co., Ltd. said that Valin will support powerful dealers to build 4S stores, such as Guangzhou Lingma dealers can sell hundreds of heavy trucks a year, which is larger in Guangdong Dealers, but whether to open 4S stores depends on the dealer's own strength.
Liu Hanru, chairman of Valin Motors, stated that the establishment of the 4S shop is a natural result and the Guangzhou Lingma shop is just the beginning. “This year, Valin has achieved very good results, sales growth has doubled, and overseas markets have grown several times. In the next few years, Valin plans to build 100 4S stores in major markets across the country.â€
According to statistics from Hualing Automotive, in the first half of this year, Valin Motors produced a total of 6,131 heavy vehicles and sold 6,050 vehicles, an increase of 114% and 122%, respectively, compared with the same period of last year, including a sales record of 1,426 units in June. Judging from the sales trend, Valin Motors should not be a problem in fulfilling its 12,000 sales target this year.
In the sales map of Valin Motors, the Guangdong market occupies an important position. Therefore, when Valin Motors needs to establish a 4S shop to provide a higher level of service for the market, Guangdong is taking the lead.
“Guangdong region accounts for about 40% of the total sales volume of Hualing Automobile, and has a high level of users. It has relatively high requirements for vehicle performance and after-sales service. We support the opening of the first 4S store in Guangzhou, which has a demonstration effect on dealers in other markets. It is also an encouragement and promotion for the national market. There will be 5 to 6 4S shops in the Guangdong region that will be opened successively in the next year. As a starting point, in the next few years, we will promote the construction of 4S stores nationwide and cover the national market.†Company sales director Wang Yanan said.
Yi Hongguang, an analyst in the auto industry of Union Securities, said that although the heavy truck industry will continue to grow this year, the growth rate may reach 70% to 80%, but the brand concentration in this industry is very high. "The degree of concentration is close to that of the passenger car industry. China National Heavy Duty Truck Group, Shaanxi Heavy Duty Truck and Foton Motors are in the first camp, occupying a considerable market share in the domestic heavy truck market."
In comparison, the total truck sales of Dongfeng and FAW and other companies have increased, but the market share has been declining. Under such circumstances, the sales of heavy-duty trucks by Valin Motors have increased to the eye-catching attention of the industry. However, some people in the industry believe that the establishment of 4S stores by heavy-duty truck companies is not the first company. When the concentration of brands is higher and higher, heavy-duty truck companies only occupy a certain market share, and 4S stores can enhance the brand. In order to build more than 100 4S stores in the next few years, Valin Motors needs to see its market performance.
Go overseas
"The company has entered the overseas market since 2005 and is growing at a rate of over 100% per year. This year it will reach 2,000 units," said Fang Rui, Deputy Minister of Overseas Markets at Valin. In fact, the overseas sales target of Valin Automotive has been changed several times this year. At the beginning of the year, it plans to sell 1,500 units. This figure has doubled from 600 last year, and by mid-year this figure has increased to 2000 units, and the current plan has been increased to 2,500 units.
The frequent changes in the plan are related to the rapid increase in the product positioning of Hualing Heavy Trucks and the acceptance and recognition of overseas markets. Valin Motors first used Mitsubishi's technology platform, later integrated the latest international technology, and added independent research and development elements, developed a heavy truck configuration, and high technology content. "For the predominant high-end market, Valin Motors is now returning customers to many orders." Fang Rui said.
According to Yao Hongguang's statistics, the gross profit of the heavy truck industry is higher than that of light trucks. If the materials are complete, they can generally reach 15%-17% and the net profit can reach 3%-4%. If the materials need to be purchased, the gross profit margin is also 8%-9. %, while the light truck industry is doing well only 11%-12%.
In fact, not only does Valin Motors get high profit margins due to heavy trucks, but it also produces heavy-duty truck chassis in addition to production vehicles, which has a stronger profitability than ordinary companies. "There are top-loading resources and therefore a comparative advantage." Fang Rui said. However, due to the fact that the popularity is still not very high, Valin Motors still needs to take out some profits to distribute to distributors and channel promotion. This is one of the reasons why Valin can quickly open overseas markets.
Compared with other Chinese companies in other industries, overseas get competitive advantage at a low price, the price of Valin Automotive is not competitive. In Algeria, North Africa, the market price of the 6×4 L375 tractor from Valin Motors is 760,000 yuan, which is comparable to that of Renault, a well-known heavy truck brand in Europe. However, Hualing heavy trucks are still very much recognized by customers in the local area. From the first batch of exports in 2005 to now, Valin Motors has already sold more than 600 heavy trucks locally.
Valin's business personnel said that Valin's heavy load, high-deployment configuration and low failure rate are very popular among local business customers. Many powerful distributors want to be agents of Hualing Vehicles. One of the dealers had to increase its 2007 sales plan from 300 to 500 because it was often unable to promptly deliver the car to customers and complained that many customers had to be at the dealership to be able to mention the car first. There is a deposit in advance.
Different from domestic ones, Valin Motors has not set up 4S stores overseas, but it basically operates the market in line with the 4S stores. “We generally select a general distributor in a country and ask them to not only sell, but also to do after-sales service and spare parts sales. It is more difficult and costly to go overseas to do sales and after-sales,†said Fang Rui.
Due to the high-end model configuration itself and the high cost of overseas logistics, Valin Motors has relatively weak price advantages in some overseas markets, especially in some emerging markets that are sensitive to price. In the future, Valin Motors may invest in factories overseas to produce CKD and SKD.