The heavy truck that assembled the Weichai III engine was reduced in price. The State III heavy trucks equipped with EGR engines also cut prices.
State III concessions are endless
In September, the promotion and concessionary activities of the National III Heavy Duty Trucks continued to emerge in an endless stream. The price cuts ranged from RMB 5,000 to RMB 20,000. The product with a larger price reduction can be found in two camps: one side is a vehicle equipped with Weichai high-pressure common rail country III, such as Shaanxi Auto and Auman, and the other is a vehicle equipped with an EGR engine, such as China. Heavy truck, Dongfeng Liuqi, Jianghuai Geerfa and so on.
According to CNHTC, after assembling an EGR engine, the total vehicle cost will only increase by 10,000 yuan. Compared with the increase of RMB 24,000 for high-pressure common-rail engines, it can be understood why some heavy-duty truck companies have such a large drop in the price of the national III heavy trucks after they purchase the EGR engine.
For high-pressure common rail systems that are monopolized by Bosch and Japan, it is not easy for the high-pressure common-rail country III engines to cut their prices. Why Shaanxi Automobile and Auman III products can offer more than 10,000 yuan?
"The transfer of profits to the user, the vehicle factory to bear part of the cost, weichai to bear part of the cost." Shaanqi, Futian relevant person in charge to explain. It is even rumored that the price reduction was initiated by Weichai. In order to combat the price advantage of EGR engines, it gained market share through price cuts. Therefore, not only Shaanxi Auto and Foton but also SAIC Iveco Hongyan and other companies that match the Weichai III engine will also introduce similar promotions and preferential activities.
Will there be a price war?
Calculated on a bicycle costing 10,000 yuan, 5,000 vehicles means that the company will lose 50 million yuan. Even if this part of the cost is shared by the OEM and OEM, it is not a small sum. In response, Liu Keqiang, marketing manager of Shaanxi Automobile Sales Company, admits that the promotion and preferential activities are only staged and will continue for a long time. Enterprises will certainly not stand.
Based on advances in technology, value chains, and management systems, leading to total cost leadership, and then reducing product prices to corporate harmless, but lowering non-cost-reduced product prices, will continue to intensify as other manufacturers follow and eventually evolve into prices. war? How to deal with the liberation of FAW and whether CNHTC will adopt the strategy of continuing to follow up will become the key point for whether the price war of the country's III heavy truck will be explosive.
In this regard, Liu Zhenguo, assistant to General Manager of FAW Jiefang Trading General Company, said that FAW's liberation will not follow up and will promote its products in accordance with its own pace. According to the head of China National Heavy Duty Truck Sales Tianjin Branch, “Even if they lower prices, their prices are about the same as those of heavy truck EGR Country III.†Therefore, CNHTC is unlikely to follow up, at most, it will introduce some promotion policies.
However, during the interview, several responsible persons of heavy truck companies and industry experts are worried that this situation will continue, and the heavy truck industry may trigger a price war.
"This is an unfair competition. If it continues, it may lead to vicious competition and disorderly competition in the industry," said Liu Keqiang.
What he described as unfair was that the state's lax regulation of EGR engines led to unequal competition among enterprises from the very beginning. "Strictly implemented national policies, companies that use high-pressure common rails will suffer losses."
Therefore, behind the price war, the competition is the choice between EGR and high-pressure common rail. Competition is the enterprise's ability to bear, and it also tests the supervision ability of the government. If corporate profits are continuously diluted and there is no sustainable development capability, the ultimate losses will be users, businesses and countries.
View related topics: State III standard commercial vehicle companies usher in new challenges
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