Unlike the heavy-duty truck market, the domestic light truck market has been in a relatively stable state. Even if there are fluctuations, the magnitude is not obvious. In recent years, with the continuous advancement of urbanization, light trucks have played an indispensable role in the urban logistics industry chain.

In 2017, low-speed trucks completely withdrew from the historical stage, and light trucks once again ushered in new development opportunities. What impact will this have on the light-duty truck market? Five countries will soon switch, dealers are busy? Questions and listen to dealers.


City logistics demand for van light trucks is huge

Lemon Tea guests:
Wei Jiansheng General Manager of Tianjin Tony Automobile Trading Co., Ltd. Jiang Bo Urumqi General Manager of Jianghuai Automobile Sales Co., Ltd. Gao Jianhua General Manager of Beijing Zheng Wantong Automobile Sales & Service Co., Ltd.

Moderator: Hello ladies and gentlemen, welcome to the "Lemon Tea House" guest. According to data from the China Automobile Association, in January 2017, sales of domestic light trucks fell by 1.39% year-on-year. Now, what changes in the market to the end of February? Does the market performance achieve expectations?

Jiansheng Jian: Actually, we are satisfied with the market performance of light trucks in January-February. Statistics show that in the past two months, we have sold a total of more than 60 models of various types of cars, the best-selling van trucks, warehouse cars are better than flatbed sales. If it is not the manufacturer's capacity problems, I believe that our sales performance can be furthered.

Jiang Bo: Affected by the Spring Festival holiday, our January sales were not as good as last year. In February, sales of light trucks were better than those in January, but their recovery was modest. In general, March is the peak sales season, so the first two months of sales fluctuations are acceptable. Judging from the current sales model, the 4.2-meter van has sold the best and is the most demanding model in the local market. Because this kind of car can be put on the blue card, and the carrying capacity can satisfy most urban distribution needs.

Gao Jinhua: Similarly, our sales volume in January was also affected by the Spring Festival holiday, with less than one hundred sales. After entering February, all work resumed, and the performance rose straight. Although there was nearly a week away from the end of the month, the performance had already exceeded 100. In the model, the 4.2-meter light truck is most welcomed by the Beijing market.

Moderator: As early as two years ago, the Ministry of Industry and Information Technology released an announcement stating that, starting from January 1, 2017, the category of low-speed trucks will be eliminated in the management of “Vehicle Production Enterprises and Products Announcement”. Related companies should stop production and sales of low-speed truck products. . Today, nearly two months have passed in 2017. Are the benefits of delisting of low-speed trucks reflected in the sales of light trucks?

Ji Jiansheng: In fact, as early as a few years ago, Tianjin had already forbidden sales of low-speed trucks. Therefore, the fact that low-speed trucks completely withdrew from the historical stage this year has had limited driving for the Tianjin light truck market. However, the prohibition of low-speed trucks at that time did provide ample room for sales of light trucks. Although there is no increase due to the delisting of low-speed trucks, in the past two years, the intensity of the elimination of yellow-label vehicles in Tianjin has continued to increase, which has also helped the sales of light trucks. It is believed that this year's market can achieve satisfactory results.

Jiang Bo: Indeed, the delisting of low-speed trucks will surely transfer some users to the light truck market, but I think the role is limited. First of all, we need to know what the user needs to buy a low-speed truck. In recent years, with the upgrading of emissions and the improvement of the quality of car manufacturers, the price of light trucks has gone up, which is obviously less attractive for low-speed truck users. In contrast, nowadays, in the urban logistics, cheaper logistics vehicles such as “bread” and tricycles have emerged. For those users who do not require much cargo, it is far more cost-effective to purchase these vehicles than to purchase light trucks.

Gao Jinhua: Although Beijing has not explicitly restricted the relevant policies for low-speed trucks in recent years, low-speed trucks are hard to find in the Beijing market, and the increase in the number of light trucks brought by delisting is extremely limited. In recent years, the increase in light trucks in Beijing has mainly depended on the elimination of old vehicles and the rapid development of urban logistics and distribution. It is speculated that the demand for light trucks in urban distribution in Beijing is higher than last year, and we are also confident in sales this year.


Light truck market picks up in February

Moderator: After February, the market will usher in the traditional sales season. I believe that the importance of every year in March and April is self-evident. What preparations or deployments have everyone done?

Jiansheng Jian: Actively preparing stocks, actively moving around, and actively communicating are our main strategies for coping with the traditional sales season. Recently, manufacturers have held new product launches in more than 20 cities across the country in the same period, hoping to increase product exposure before the peak season and use the traditional sales season to drive the promotion and sales of new products; at the same time, new products can also provide diversified choices for sales during the peak season.

Jiang Bo: The upcoming March and April is not only a traditional sales season, but also an excellent opportunity for us to go to inventory and empty the National IV vehicle. In July of this year, the National IV Vehicles will not be able to get on the cards. Therefore, we will have to sell all the National IV vehicles in the hands before the end of June. So, how to improve the attractiveness of products in a short period of time, the answer is definitely to make profits. By reducing the selling price of products, not only can it effectively stimulate the performance of the traditional sales season, but it can also help us to clean up the country’s stocks as soon as possible and return funds to deal with the country’s five shifts.

Gao Jinhua: In the traditional sales season, the most frustrating for dealers is that they have no cars to sell. Therefore, we have reserved best-selling models ahead of schedule this year. However, many years of experience tell us that stocks cannot be stored blindly. The strategy we have adopted this year is "small-batch, diligent reserve" to allow products to flow and to avoid the backlog of inventory caused by market changes. In addition, we will also hold corresponding promotion activities to help sales.

Moderator: As the guests said, starting July 1 this year, the country will be officially switched to the country five. How have you progressed in your national five-model vehicle reserve?

Wei Jiansheng: We are actively following up on the five national emission regulations to be implemented. The new product reserves are being carried out in an orderly manner and it is expected that the switching of all products can be completed by the end of June.

Jiang Bo: At present, the main work is to clear the country's four stocks, reserves of five new products, and manufacturers of rations of five products are gradually coming to the store. Today, the idea of ​​buying cars has changed a lot since the country switched. Most users prefer to buy high-standard, high-quality vehicles. Therefore, the practice of storing old models two years ago has been inadvisable, and the National Five new product is the main force of sales in the second half of the year.

Gao Jinhua: Beijing had already implemented the Beijing Five emission regulations as early as June 2015, so the State Five switch has little impact on Beijing dealers. Our work this year is still based on sales of existing best-selling models. Even if users from other provinces and cities purchase cars, Beijing Five-emission models can meet all standards and requirements.

Moderator: With the implementation of the National Five-Emission Regulations throughout the country, more environmentally-friendly and greener models will serve the urban distribution areas throughout the country. Although the delisting of low-speed trucks has limited assistance to the light-duty truck industry, it does not prevent light trucks from continuing to lead the “potential list” of the truck market.



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