“Now all manufacturers are cutting prices, the cheapest national III heavy truck is only more than 6000 yuan more expensive than the National II.†Li Yuhua, general manager of Xinyu City Chunyu Automobile Transportation Dongfeng Co., Ltd. told the “Commercial Automotive News†reporter.
National III heavy truck price drop
It is understood that in the northwestern region, Shaanxi Auto’s State III products have a profit of more than RMB 10,000. Large customers’ orders can also enjoy greater discounts. After consulting the dealers of various heavy-duty truck companies, the reporter learned that not only Shaanxi Automobile has reduced prices, but most of the heavy-duty truck companies have also cut prices and promotions, hoping to use the second half of the year to seize more market share of the country III.
“Dongfeng Liuzhou’s national III heavy trucks will cut the price by 12,000 yuan.†Li Yonghua said. According to Liu Ergeng, manager of Foshan Lingma Automobile Sales Co., Ltd., the price reduction of the State III heavy truck on the market is now between RMB 5,000 and RMB 10,000. After the price reduction, the price is approximately 10,000 yuan more than that of the National II heavy truck. "The current price reduction is mainly due to higher rebates for automakers to dealers, for example, from the previous 2% to 3.5%. Dealers cooperate with manufacturers to sacrifice a part of profits for promotion to seize the national III market. In fact, we have a rebate of RMB 5,000 for certain relatively high-volume vehicles,†said a business manager of Hebei FAW Trading Co., Ltd. The brand manager of Hebei Tongli Motor Trade Co., Ltd., Jiang Jie Gefa, told reporters that Jianghuai Gehl Heavy Trucks also dropped about 16,000 yuan, and there are also other benefits such as giving oil cards. According to the reporter’s understanding, Beiqi Foton has also launched a price reduction promotion for the Auman III heavy truck since September.
EGR price reduction forced Palace
The price drop of the National III heavy trucks is one of the important reasons why many manufacturers have selected the EGR engines from China National Heavy Duty Truck.
From August onwards, Hualing took the lead in signing an EGR engine with China National Heavy Duty Truck and will launch a State III heavy truck equipped with an EGR engine. A related person in the market department of Valin Motors stated that at present, the China III Heavy Duty Truck equipped with a high pressure common rail engine has no intention of lowering the price. The EGR III products promoted in markets such as Henan and Hebei have reduced the selling price due to the decrease in engine cost. In addition to Valin, the companies that use EGR engines are Dongfeng Liuzhou Automobile and Jianghuai Geerfa.
Zhang Dongfan, Dongfeng Liuzhou Automobile Co., Ltd. Marketing Manager told reporters: "We will not hang in a tree, to enrich the product lineage." According to reports, Dongfeng Liuzhou in addition to the assembly of high-pressure common rail engine of the State III heavy truck, but also There are national III products equipped with monomer pumps and EGR engines, and Li Yonghua also stated that after Dongfeng Liuzhou’s EGR heavy truck was put on the market, many users showed interest in buying because of their obvious price advantage, and they also had some orders.
JAC Geerfa held a dealer conference on September 10 to prepare to promote EGR heavy trucks. According to an insider analysis conducted by JAC Geerfa, with the switch of State II to State III, with the exception of China National Heavy Duty Truck, Shaanxi Automobile, FAW, Dongfeng, Futian Auman and other mainstream heavy truck manufacturers, other companies’ sales performance A certain degree of turbulence, especially the assembly of high-voltage common rail engine of the State III products, is at a disadvantage in sales. In order to grab the national III market, these companies have locked their eyes on the cheaper EGR engines. It is for this reason that heavy-duty truck companies have started to promote EGR China III products in order to keep their share in the heavy truck market.
Common rail pressure cuts
The high pressure common rail country III heavy truck that does not have a price advantage has also had to cut prices for promotion, and after the price reduction, its product prices are comparable with EGR heavy trucks. “It is said that Weichai Power mainly makes concessions on engine prices. Heavy trucks such as Shaanxi Automobile and Foton, which assembled Weichai III machines, all have a drop of more than 10,000 yuan.†A dealer of SAIC Iveco Hongyan told reporters , “Whether it is the vehicle manufacturer’s profit, or the profit of the engine plant, the benefits are all users. At present, there are still some undigested products on the market. For the State III heavy trucks, many users still take a wait-and-see attitude. It will promote the sale of State III heavy trucks."
In the face of active price cuts of high-voltage common rail country III heavy trucks, Zhang Dongfan stated: “The price cuts of Shaanxi Auto and other companies should be promoted by engine companies, and can also be interpreted as a smashing strike against EGR heavy trucks. Moreover, the emphasis is on popularizing high-pressure common rails. The OEM of the engine also hopes to reverse the current intensive concern of the EGR engine."
“The vehicle manufacturers and engine manufacturers all have a certain degree of price reduction. Both sides should cooperate with each other. This should be seen as a game between high-pressure common rail and EGR, and also a game between engine companies.†Liu Ergeng said.
Relevant personages of Hualing Automobile Market Department stated that whether the EGR engine or the high-pressure common-rail engine actively cuts prices, the popularization of the country III heavy truck is good news, and each manufacturer will also have corresponding countermeasures. However, if it eventually evolves into a price war, it will not be conducive to the long-term development of the heavy truck industry.
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