The light truck market is beginning to disappoint, dealers expect March


The scene of the highly-accident car accident “Depth callback” is one of the main themes of the 2011 young card market. After the "explosion" in 2010 and the "cooling" in 2011, industry experts analyzed that the light truck market in 2012 will recover, showing a slight increase. However, the drop of 37% year-on-year in January this year has caused light truck dealers to beat the drums. Is this a downturn in the market or influenced by holidays or other reasons? What kind of situation did the light truck market start in 2012?

The first commercial vehicle network reporter interviewed some distributors who were in the front line of the market.

The market is beginning to cool, and it is expected to warm up in March.

For many light truck dealers, 2010 is a good year, and 2011 is a cold one. The market conditions in the first two months of 2012 are like the weather in the north. There is no slightest warmth, and dealers can not help but lament the “market this year. Still a bit cold."

As a large agricultural province in China and a major economic province in the central region, Henan’s total GDP for many years ranks first among the six provinces in the central region. The rapid development of industry and agriculture has boosted the local demand for light trucks. However, the overall lightness of the light truck market in Henan this year made local distributor Li Gang feel that “the good days of the past light truck market have completely ended.”

“2009 and 2010 have already become a good time for us. However, because the market is too good for the past two years and the demand for overdraft is too much, it will be difficult for us to have this kind of good situation this year.” Li Gang lamented to reporters. Road.

Having said that, according to the reporter's understanding, compared with other dealers, Li Gang's sales in the first two months of this year are still OK. “In January-February, more than 20 light trucks were sold, and the situation in February was better than in January.” For March, although no order has been received yet, Li Gang believes that “many units started placing orders in March”, so he Still holding the hope of "Yangchun March".

Coincidentally, Mr. Liu, a light-card dealer in Jiangsu, also felt that the market was flat this year. The total GDP of Jiangsu Province ranks first in the country. In the 15 economic belts of the Yangtze River Delta, Jiangsu has nine seats. Therefore, Jiangsu has great market potential for any light truck manufacturer.

However, during the conversation, Mr. Liu told the first commercial vehicle network reporter: “Compared to some local branded franchise stores, the company’s represented light truck brands are relatively abundant, including mainstream enterprise products such as Futian, Jianghuai, Jiangling, and Isuzu. Nevertheless, due to This year's Spring Festival was earlier, and in January it took a long vacation and the market was less booming.Slightly better than January, the sales volume increased slightly.The company’s branded light trucks sold 120 units in the first two months, which did not increase compared to last year. The market is a flat start."

"In March, from the current orders, the market seems to be a little better," Mr. Liu said.

From the perspective of sales volume, these two regions are major sales provinces in the light-duty truck market, but information revealed by dealers shows that the markets of Henan and Jiangsu will not increase during the spring of this year. However, compared to Henan and Jiangsu, the light truck dealers in the northwest are even more dismal.

“Selling cars are very regional. As for our store, compared with last year, the market's declining trend this year is very obvious.” Zhong Feng, a Shaanxi Dongfeng light truck dealer, said gloomily, “In the first two months, the sales of light trucks in the store were accumulated. 20 vehicles, down 30% year-on-year."

This downturn is not unique to the Shaanxi market. In the face of the same sluggish market, a light truck dealer in Inner Mongolia appears to be indifferent. “The market was dull in the past two months. Sometimes there were no customers in the store. Everyone had to sit and chat in the desolate office and recall the good times in the past.”

However, for the upcoming March, April and May, the above two distributors are still relatively optimistic, they think this is the traditional peak season, it will not increase significantly but it will not drastically decline.

Mid-range light trucks dominate the mainstream High-end products go low-speed

At the 10th China Automobile Industry Development Summit held in November 2011, participants from Jianghuai Commercial Vehicle Company once said that although low-end light trucks account for about 90% of the domestic light truck market, they will continue to grow with the urbanization process in China. To speed up, high-end light trucks will maintain rapid growth for a long period of time, and it is expected that the annual growth rate will remain at more than 10% in the future to adapt to the expansion of urbanization in China.

In the past two years, along with the expansion of the light-duty truck market, domestic light truck manufacturers have also introduced high-end light truck products that meet the higher demand of the market while expanding production capacity.

However, the reporter learned from the first-line market that this year's high-end light trucks only show a slight growth trend. Mr. Zhong of Dongfeng Kaipute said: “Although high-end light trucks have sales, the base number is too small. At present, mid-range products in the domestic light truck market are mainstream, such as JAC, Dongfeng, and Futian brand light trucks; ordinary vehicles including low-speed vehicles Powered light trucks (low-end light trucks) have gradually faded out of sight when the wind, Kama, etc.

It is understood that Dongfeng Kai Pu Te's unit price is also minimum 14 million. Due to the high prices, Mr. Zhong sold only three Capt's in 2011, and the purchasers were all military enterprises and state-owned enterprises. They have not yet achieved the purchase of individual users.

Li Gang, who distributes Qingling Isuzu light trucks, told reporters: “The users of Henan Province pay more attention to affordable cars and have higher sensitivity to prices. Therefore, many users prefer to purchase some mid-level light trucks for the economy. However, Isuzu is a high-end model with a minimum of 80,000 yuan. In addition, the competition among light truck companies in Henan is very fierce, so the sales of Isuzu in Henan are very general, and the purchasing users are also government, enterprises, oil fields, coal mines, etc. The purchase volume of these users accounts for 40% of the sales volume. about."

Although high-end light trucks have a small market share, in Li Gang's view, the market prospects for high-end products are still very optimistic. Mr. Zhong's argument also echoes this point: “The listing of high-end products has strongly promoted the upgrading of China's light-card industry. But it takes a process to open the market.”

Unpredictable user demand gradually escalated throughout the year

Based on the dull start of the light-duty market in the past two months, dealers generally expressed that the trend of the young card market is "hard to grasp."

“Our goal for the whole year is 130 vehicles, but it is expected to be able to complete 100 vehicles.” For 2012, the light truck market was slightly negative for Mr. Zhong of Shaanxi. “Since 2010, I feel that the market is changing rapidly. The previous month I think the market is okay, and suddenly it will be deserted next month. So, it's really not a good idea for the market this year."

Manager Liu of Jiangsu is equally vacant. “For the whole year market, it is really not good to judge. Although the overall market fell in 2011, we received a lot of bulk orders, and the sales volume is still larger throughout the year. However, it is also due to the large volume of large orders. This will lead to a shrinking profit. The company’s goal this year is to achieve a 20% growth, but whether it can be achieved depends on the macroeconomic situation and how the traditional light truck peak season will perform in March-May.”

Although the market for the whole year can only be seen in the fog, dealers generally find that the consumer demand for cars is getting higher and higher. "Now there has been a significant upgrade in user demand. Customers don't just look for cars that are cheaper, but they will consider comprehensively from the brand, after-sales service, and accessories."

The situation in Henan described by Li Gang is also the same: "users' demand for use is increasing."

In addition to comprehensive considerations when purchasing a car, redemption has also become one of the manifestations of the increase in consumer demand. "According to the characteristics presented here in Shaanxi, there are more users for redemption. Because light trucks are generally used for two and a half years, they will be scrapped, so many users will buy a higher-level model after selling their used vehicles." Mr. Zhong said.

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