Xiang Xingchu: Jianghuai Heavy Trucks is confident to exceed 30,000 vehicles next year

For JAC, the upcoming 2012 will be an extraordinary year. At the beginning of the year, the company's new and old management completed the alternation. With the arrival of the new management headed by the chairman, Amgen, JAC’s business strategy has also been quietly changed. A series of profit-oriented management reforms began at JAC. To this end, the company's various business segments have been optimized from the organizational structure, product system, assessment indicators, marketing channels and other aspects.

In the process, in order to meet the needs of the company’s strategic development and further strengthen the professional operation capabilities of the heavy-duty commercial vehicle business, JAC divested its heavy commercial vehicle business from commercial vehicle companies and established a dedicated heavy-duty commercial vehicle company. The general quality division of the former Jianghuai Automobile Co., Ltd. and the assistant to the general manager Xiang Xingchu served as the general manager.

At a new car delivery ceremony recently held in Tianjin, reporters finally had the opportunity to interact face-to-face with Xiang Xingchu, who rarely appeared before the media. In an interview that lasted less than an hour, he had just responded and answered the questions of concern to reporters in an extremely rational and candid manner just a half year after he took office.

Since last year, domestic heavy truck sales have fallen sharply due to multiple unfavorable factors such as the domestic economic downturn and slower investment growth. Entering this year, this declining momentum has not only not stopped, but has shown a trend of further amplification. Statistics show that from January to November, domestic heavy truck sales were 577,400 units, a year-on-year decline of more than 30%.

There are no eggs under the nest. In the overall downturn of the industry, domestic heavy-duty truck companies are also generally caught in a dilemma that their sales have fallen sharply year-on-year. Although JAC heavy trucks, which once created a miracle of high growth rates last year, have failed to escape the downward trend, their market performance is still remarkable.

Rational development efficiency first

"In the context of a 30% drop in the total volume of JAC heavy trucks this year, actual sales fell only 17% during the period from January to November. This performance is not only better than the industry average, but also makes the JAC heavy truck industry rankings rise from the eighth place last year. It is the sixth place this year." Xiangxing said with joy.

He told reporters that although the sales volume of JAC heavy trucks is declining from the data, it has maintained a relatively stable trend on some key data. It is understood that, since the beginning of this year, in the context of a continuing sluggish market demand, JAC heavy truck accounts receivable, especially the risk receivables, have not risen. In particular, it is worth mentioning that in the context of the general decline in sales of heavy-duty trucks and some companies are on the verge of losses, Jianghuai’s heavy-duty truck business still has certain profits. "Under this trend of the industry, it is extremely difficult to do this." Xiangxingchu admitted frankly that the reason why the JAC Gehl Heavy Duty Truck has a relatively good performance under the adverse situation has a lot to do with its choice of network. .

According to Xiang Xingchu, the pace of the construction of an enterprise network must not only match the overall scale of the industry, but also adapt to the stage of development of its own. Therefore, we must not blindly expand and warm boiled frogs without any innovation or breakthrough.

It is in accordance with such a principle that Jianghuai Heavy Trucks will, in the process of constructing the network, take "advancement of strengths and strengths and selection of strengths" as development ideas. Xiangxing Chu told reporters that the so-called "helping the development of strong": on the one hand is to support qualified dealers in the region to carry out deep cultivation; the other is to encourage and support some dealers continue to expand the scope of business to more areas. In this way, through the joint efforts of manufacturers, Jianghuai Heavy Trucks' dealership strength in the advantageous regions continues to grow.

As for “choosing the best option”, it is in some weak or even blank areas to strive for better partners and create better conditions for their own market breakthroughs. With regard to the construction of secondary networks that many heavy truck companies are currently working on, Jianghuai also follows the above guidelines and formulates targeted and differentiated development strategies for different provinces and regions, and promotes them in an orderly manner.

Practice has also proved that this rational expansion of the network not only ensures the continuous improvement of the operating efficiency of JAC's heavy trucks, but also builds a strong channel for its market expansion.

In addition, some adjustments in marketing concepts have also benefited JAC heavy trucks. Xiang Xingchu said that in the heavy truck market, the use of different subdivided products has great differences. Once the vehicle and the use of the environment do not match, not only likely to cause frequent vehicle failures, thereby harming the interests of users, but also affect the user's satisfaction with the vehicle or even the brand. Therefore, in the sales of heavy-duty truck products, Jianghuai not only pursues selling products, but also pays more attention to whether it sells products. "If the user needs to buy a dump truck, we will recommend the most suitable and most advantageous product to him depending on its use conditions and the type of goods being transported." He said that between this product and the user's demand for use The good match makes the accident rate of Jianghuai Heavy Duty Truck much lower during use, and the user's maintenance cost also decreases, and the operational efficiency is also guaranteed. As a result, users' satisfaction and loyalty for JAC heavy trucks have also improved. This good word-of-mouth effect not only boosted the sales volume of JAC heavy trucks, but also laid the foundation for follow-up product promotion and market development.

Gathering resources

In June this year, with the establishment of the JAC Heavy Commercial Vehicle Company, the heavy truck business became an independent business unit in JAC. Talking about this adjustment to the organizational structure, Xiang Xingchu said that the reason for making such a decision is only one purpose, that is, to enable JAC's heavy truck business to achieve a better development. “From the current actual results, since the independence of the heavy-duty truck business, the overall development has been rapid and benign.” Xiang Xingchu said that many users and distributors have reported that Geerfa’s response to some different needs has now been reflected. The speed of meeting and satisfaction has been greatly accelerated. Not only has the product development speed significantly improved, it can better meet the needs of users, and dealers can also get better coordination and support. "This shows that the adjustment has been recognized within and outside the system." Xiang Xingchu believes.

In fact, in addition to the adjustment of organizational structure, the brand structure of JAC Heavy Trucks also quietly changed in July this year - the brand is unified as "Gerfair", and the original Swordsman and Da Gongchen brand are cancelled. For this change, Xiangxingchu frankly stated that the main consideration is that the current volume of JAC heavy trucks is still small, and it has not yet reached the stage of multi-brand development. Therefore, we must concentrate our energy on this brand.

In JAC's view, focus will only burn, and unfocused will lead to disperse energy and resources. “It is certainly a good thing to be able to go hand in hand with multiple brands, but if the conditions are not yet mature, it will lead to several brands that are malnourished and emaciated. How can this be done?” Xiangxing started to ask.

In order to devote limited resources to areas that should be devoted to avoid eyebrows and beards, JAC Heavy Duty Trucks, in addition to the unified brand, proceed from the actual situation of the company to import key products for key regions and key customers in order to achieve key breakthroughs.

While actively aggregating resources and striving for gradual progress, we will continue to do some basic work in a steady manner and accumulate strength for the recovery of the market in the coming year. This has also become an important task for JAC's heavy trucks.

It is understood that at the beginning of this year, Jianghuai Automobile put forward the business philosophy of "benefit-oriented". For this reason, the company requires each business unit to invoice based on actual sales data. This change in statistical caliber also brought some new operational weather conditions to JAC's heavy trucks.

Xiang Xingchu said that using actual sales data as sales volume has squeezed out the moisture in sales in the past, not only reducing the amount of accounts receivable, but also fully digesting the inventory and reducing the pressure on dealers' funds.

He told reporters that since the adoption of the new sales statistics, Jianghuai Heavy Truck Marketing Company will now retrieve the actual sales data of the distributors each week to keep abreast of their stock situation. And, according to the length of time, inventory will be divided into monthly, semi-annual and annual categories. For those indigestible and risky inventories, Jianghuai will remind dealers to pay attention and the business personnel will also urge them to digest and resolve in a timely manner.

Not only that, JAC Heavy Duty also takes a responsibile attitude towards distributors, while helping them to solve practical difficulties, it is actively focusing on upgrading dealers' management awareness and management level, and matching the corresponding resources to support them. "Distributors can achieve sustained and healthy development, not only to avoid their own ups and downs, but also stabilize the car dealers team. For both parties, it is a good thing." Xiangxingchu pointed out.

Looking forward to the coming year

At the end of the year, for the heavy-duty truck market, which has been declining for two consecutive years, whether it will usher in the expected stabilization and recovery next year, it has also become a topic of common concern in the industry recently.

In this issue, Xiang Xingchu is obviously an optimist. As we all know, heavy trucks are regarded as a "barometer" of the macro economy. Therefore, its market trend is closely related to the macroeconomic environment. According to Xiang Xingchu, in 2013, the new central leadership will take office, and all sectors of society are full of expectations. Moreover, the infrastructure construction in many provinces and cities also shows signs of recovery, especially the urbanization proposed by the central government. There is still much room for growth.

"Based on these policy signals, the overall growth rate of the heavy-duty truck industry in the next year will not be worse than this year, and there should be a slight rebound." He judged, "I personally think that the rebound rate will be about 5%~ 10%."

For JAC, how to seize the possible market recapture opportunity and seek greater breakthroughs in the new year will be a top priority next year. Xiang Xingchu said that the current volume of JAC is not very large, so next year may mean a relatively large space for growth. "We will strive to exceed the 30,000 sales target."

In order to ensure the smooth realization of this goal, JAC heavy trucks will be developed in the next year for some key areas to deepen the relative advantages in these areas. In terms of products, lightweight and LNG heavy trucks will continue to be the key models for JAC promotion next year. In addition, the introduction of China IV products, as well as the promotion of intercity logistics vehicles and dump trucks, will also be the focus of work next year.

He said that Jianghuai will extend up and down on trucks next year. “Upwards” should consider how to consolidate the relative advantages of the 8×4 model in order to increase the market influence of the product; “Downward” should further consolidate and expand its relative advantage on the 4×2 truck. Specific to dump trucks, 6×4, 8×4, and 4×2 will all be very core products. As for the tractor market, JAC Heavy Duty Trucks will continue to segment its products into pull-coal special lines, caboline, port trailers, and steel trailers according to the customer base, and will further develop products according to the individual needs of customers in different fields. The subdivision is to deepen the regional market of Jianghuai.

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