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Will the recombination of China Heavy Duty Truck & Weichai trigger an industry reshuffle?

This time there is finally a clear official statement on the heavy-duty truck products of China National Heavy Duty Truck Co., Ltd. equipped with Weichai engines.

On May 25, at the launch conference of China National Heavy Duty Truck and Weichai Machinery’s new Steyr products, China National Heavy Duty Truck and Weichai carried out a joint promotion. In this regard, Wang Yingbo, general manager of Jinan Commercial Vehicle Sales Department of China National Heavy Duty Truck Group, and Cheng Guangxu, assistant to the president of Weichai Power Co., Ltd., accepted an interview with First Commercial Vehicle Network. The two of them answered one by one the hot issues concerning the cooperation between the two parties and the public.

Weichai’s differentiated layout for engines below 10 liters

First Commercial Vehicle Network: Why did we choose to hold this joint promotion conference between SINOTRUK and Weichai? Shanxi? After assembling Weichai engines, what changes will be made to Sinotruk’s product layout? How can Weichai engine products be differentiated from existing MAN engine products?

Wang Yingbo: The Shanxi market is a traditional coal transportation market in China, and it is also a battleground for domestic heavy truck companies. As the cradle of my country's heavy-duty vehicle industry, China National Heavy Duty Truck has focused on heavy-duty truck manufacturing for more than 60 years, fully aligned with European heavy-duty truck standards, and achieved qualitative improvements in product performance. In order to better repay new and old customers, China National Heavy Duty Truck has specially created a Steyr model matched with Weichai WP10H engine to focus on the coal transportation market in Shanxi. The Shanxi market has naturally become our first choice.

The core purpose of China National Heavy Duty Truck Co., Ltd. to match Weichai engines is to make up for shortcomings and promote growth. The cooperation between the two is a strong alliance and complementary advantages. China National Heavy Duty Truck will also continue to strengthen the technical advantages of imported German MAN technology for complete vehicles and engines, and continue to create value for customers. From January to April this year, sales of MAN 11-liter (MC11) engines increased by 50.1% year-on-year, and sales of MAN 13-liter (MC/MT13) engines increased by 38.3% year-on-year. It should be said that the excellent performance of MAN engines, especially the advantages such as reliability, economy and durability, have been recognized by the majority of users. In the next step, China National Heavy Duty Truck will match and install Weichai engines of 10 liters and below in the four major series of heavy-duty truck traction, dump, cargo, and special-purpose vehicles, enrich the product line, provide users with more product choices, and help China National Heavy Duty Truck. Automobile develops various market segments, especially achieving incremental breakthroughs in short market areas.

First Commercial Vehicle Network: Shandeka is a high-end brand of China National Heavy Duty Truck. Now it has established a distinctive label in the industry. New Steyr has also begun to assemble Weichai engines. Such a product portfolio What impact will it have on the commercial vehicle sales department’s own changes and development?

Wang Yingbo: Learn from each other’s strengths to satisfy customers. Shandeka is positioned as a high-end express delivery, trunk logistics, cold chain and hazardous chemicals transportation. It currently occupies 60% of the market share of more than 400,000 yuan (heavy truck). If the development of the sales department wants to reach a higher level, it must further Enrich your product line.

For example, the new Steyr products we launched this time are aimed at coal transportation, general cargo transportation and other fields. They are equipped with the market mainstream Weichai WP10H engine. The traditional advantages of safe, reliable, durable and technologically advanced Weichai engines have been added to the new advantages of Weichai engines with strong power, economy and fuel saving, and convenient service, which will definitely bring tangible benefits to the majority of users; at the same time, it will also provide opportunities for commercial sales. Measure and lay a solid foundation. I believe that after half a year of hard work, sales will definitely reach our expected target.

First Commercial Vehicle Network: The new car products at this conference have National V emission standards. What is the current progress of the joint development of National VI by SINOTRUK and Weichai Engine? Will Weichai's National VI engines be installed on SINOTRUK's models in the future? What are the commercial vehicle sales department’s next steps for purchasing gearboxes, axles and other large assemblies?

Wang Yingbo: Strong alliances and complementary advantages.

The Commercial and Sales Department has equipped Shandeka with National VI engines of 10 liters and below in the four major series of National VI products of Shandeka: traction, dump, cargo, and special vehicles. Currently, 29 announcements have been issued, including 4 tractors. , 20 dump trucks, 2 mixer trucks, and 3 trucks; 6 special announcements will be released soon, which will greatly enrich the product line, provide users with more product choices, and help China National Heavy Duty Truck develop various market segments, especially It is to achieve incremental breakthroughs in short market areas.

At present, gearboxes and axles still use the unified resources of China National Heavy Duty Truck Group Corporation. Later, resources will be arranged according to the unified planning of the group company.

Learn from each other’s strengths and weaknesses Weichai will share technology and services with China National Heavy Duty Truck Company

First Commercial Vehicle Network: This time, new Steyr products equipped with Weichai engines are officially launched , can be said to be a big event in the industry. What are your expectations for the new product?

Cheng Guangxu: In 2017, the sales volume of Weichai H platform exceeded 30,000 vehicles as soon as it was launched; in 2018, the sales volume was 60,000 vehicles; this year’s sales target is 140,000 vehicles. It can be seen that the H platform has indeed been highly recognized and trusted by our customers.

This product focused on user needs when it was launched. According to our survey, customers are very fond of engines with small size, light weight, in-cylinder braking and fuel economy. The H platform has an in-cylinder brake to ensure the safety of the driver; the H platform is 200 kilograms lighter than the old product, which means that it can earn an additional 10,000 yuan a year in the coal pulling market. Moreover, the fuel consumption is significantly lower than that of imported engines. Therefore, after H platform products entered the market, they quickly replaced the short- and medium-distance logistics market, and the scope of substitution is still expanding rapidly.

In the later stage, Weichai engines will be matched on Steyr, Howo, Shandeka and other models. This also solves the dilemma in some areas where customers particularly like SINOTRUK vehicles, but they also like to use Weichai engines. It turns out that customers are always left to choose, which is not always easy to choose. But this time, SINOTRUK joined hands with Weichai for the "Return of the King". Weichai engines and SINOTRUK vehicles were successfully matched, which also solved the customer's choice dilemma.

First Commercial Vehicle Network: This cooperation between the two companies can be said to be a "strong alliance." So, how will SINOTRUK and Weichai cooperate during the release and promotion of this new car? What innovative service systems have the two launched for the logistics industry?

Cheng Guangxu: First, this new product was launched in more than eight months, which has indeed created a miracle. It is very fast and it is also a miracle. A result of the efficient collaboration of the two teams; secondly, the planning plan for this listing was planned by both parties in March. "Sinotruk & Weichai, the return of the king" was a theme proposed by Liu Peimin. Why use this theme? It turns out that China National Heavy Duty Truck and Weichai have always been cooperating, but they were interrupted for a period of time. Now they have come together again to launch products that meet customer needs. We also hope to do a good job so that this product does not disappoint customers. its expectations.

In terms of service system, since the end of last year, the two parties have made some collaborative connections. China National Heavy Duty Truck's service system has now included 537 companies in Weichai's service system. These systems have all completed various skills training in Weifang. Weichai's service is called proactive service, including dispatch service, customer care, process handling, and problem closure. Weichai and China National Heavy Duty Truck have made some discussions on this service model together. China National Heavy Duty Truck is very supportive of this model, and China National Heavy Duty Truck may also consider adopting this model in the future.

In addition, I’ll give you some news. From January to April this year, Weichai’s heavy truck engine sales increased by 21% year-on-year, and its market share increased by four percentage points. This year, Weichai's performance in the heavy-duty truck industry is even more eye-catching than in the previous two years; in 2017, Weichai installed 310,000 units; in 2018, Weichai installed 360,000 units; as expected this year, Weichai will be able to complete the 220,000 units.

The main reason for the increase in sales is that this year Weichai has made great efforts in the tractor, dump truck, and gas vehicle markets, and has deployed our products in each market segment. In the future, Weichai will continue to concentrate its technology and efforts on research and development, and launch different products to meet different customer needs.

First Commercial Vehicle Network: From the perspective of the two CEOs, what changes will the cooperation between SINOTRUK and Weichai bring to the competitive landscape of our entire industry?

Cheng Guangxu: I don’t think it’s that nervous. As the old saying goes: "Every carrot and cabbage has its own preferences." Nowadays, more and more users have personal preferences. The heavy truck brand has also formed a pattern and positioning in the minds of customers. Therefore, I personally believe that how to meet customer needs is what companies must consider. Don’t be too narrow-minded. Now the country is talking about open cooperation. We are all in the Chinese market. There are so many customers and companies. Cooperation between us may promote mutual development, and the result of development is to benefit customers.

Wang Yingbo: I agree with Mr. Cheng’s point of view. Why did SINOTRUK and Weichai develop this product and why do they cooperate closely? Our business philosophy is to satisfy customers, and all our efforts are directed towards meeting user needs. Regarding cooperation and competition, this is an eternal theme. I believe that we develop together through cooperation and competition.