"Heyue Ruifeng" dual-brand passenger car strategy in November last year after the Guangzhou Auto Show was established, JAC commercial vehicles will also be pulled off the integration of the curtain.
A few days ago, the reporter learned from JAC's insiders that JAC Group's Minister of Marketing, Cui Yizhang, is leading the consolidation and integration of JAC commercial vehicles.
"The specific plan is still under discussion. The general idea is: The focus of the expansion of the expansion of expansion." The insider told reporters that the purpose is to use the commercial vehicle market adjustment opportunities, expand the JAC commercial vehicle scale, enhance the JAC commercial car brand.
After taking over Zuo Yan'an as chairman of JAC in early 2012, An Jin set about reforming Jianghuai. In 2012, it completed the adjustment of the organizational structure and brand of JAC Passenger Cars, and at the same time identified JAC's emerging business Xingrui Utility Vehicle as a strategic business of JAC.
Commercial vehicle integration "recycling and use"
Compared with the clear brand strategy of “Yueyue Ruifeng†that Jianghuai Passenger Vehicle has already identified, there are many brands of JAC passenger cars. Only the light trucks are equipped with seven models: Suzuki Bell, Kang Ling, Jun Bell, Wei Ling, Hao Hui, Lucky, and Lucky. In addition, there are heavy Cagle Fat and Picari Bell.
“The purpose of the integration is to focus on limited resources.†The insider stated that, unlike the integration of passenger vehicle resources, commercial vehicles will adopt the principle of “collection and use combinedâ€.
In October last year, Jianghuai spent RMB160 million to acquire a 67% stake in Yangzhou Light Vehicles and 100% of Anchi Agricultural Vehicle Factory in Mengcheng County, Anhui Province. “The commercial vehicle market is more stable than the passenger vehicle market, and it will be difficult to expand a certain product after it reaches a certain scale.†Jianghuai insiders told reporters that JAC is likely to continue with some acquisitions in order to expand the area of ​​commercial vehicles.
Last year, the domestic commercial vehicle market fell. According to statistics of the Automobile Industry Association: From January to November, the production and sales of commercial vehicles were 3,401,600 and 3,460,800 respectively, down 5.66% and 6.77% respectively year-on-year. According to Jianghuai’s latest December sales and sales report, Jianghuai’s decline in commercial vehicles last year was only -2.61%, which was far lower than the industry average, partly due to the acquisition of the above two companies to make up for the decline in production and sales.
The above-mentioned Jianghuai insiders analyzed with reporters: According to JAC's judgment on the commercial vehicle market, the future industry concentration of commercial vehicles will further increase, and sales concentration will further move closer to dominant companies, while some marginal enterprises will gradually be eliminated. At the same time, however, in the process, commercial vehicle companies will gradually move from chaotic competition to more mature brands, which makes commercial vehicle companies have to establish their own brands.
Brand power is profit promoter
JAC's sales and sales report released on January 5 showed that sales of JAC Automobiles entered a recovery channel last December, with 37,800 vehicles sold in the month, a year-on-year increase of nearly 52%. In addition, the repurchase plan of the capital market started by Jianghuai in September last year has also achieved the expected results, which has increased market confidence. The stock price quickly reached the upper limit of the repurchase price in December last year, so that Jianghuai’s share price was higher than the repurchase price in December. Canceled the repo.
However, Anjin still can not bypass the annual decline in self-owned brands, as well as enhance the brand premium ability, to enter the high-end market problems.
For the future market, Amgen does not expect his cake to expand indefinitely. “The cake is so big. The key is whether you can cut it a bit more. The next step for JAC to change its development approach is to shift from low-end products to high-end products. The product is profitable and branded."
Jiangrui's listing of this year's Xingrui Automobile is an important strategic product for Jianghuai to increase profits. Lin Xiaohu, general manager of JAC's multifunctional commercial vehicle company, calculated an ideal account for the reporter. Xing Rui’s target for 2014 is 40,000 units. According to the price of 13 million yuan per vehicle, annual sales will reach 5.2 billion yuan. With the after-sales service market, sales will reach about 6 billion yuan. If calculated on a 5% net profit basis, the new business will add 300 million net profits to Jianghuai. In the European passenger car industry, the 5% net profit is low.
Brand return is a long-term strategy
At the Beijing Auto Show last year, Great Wall Motor’s Tengyi sedan brand was renamed “Great Wall Sedan†with the aim of getting rid of the previous low-end image and upgrading the brand. Great Wall built the car in the early stage, because the Great Wall has given consumers the impression of the SUV brand, so the car brand named Tengyi. With the increase in sales of Tengyi, it also brought about changes in the connotation of the Great Wall brand. Great Wall has also become a comprehensive brand integrating SUV and sedan. Returning to the Great Wall, Great Wall successfully completed the product upgrade and focused brand of the car. JAC is also trying to realize the brand reshaping of JAC auto companies through the integration of its brands.
Due to the start of commercial vehicles in the early days, after entering the car industry, Jianghuai opened a series of cars named Binyue, Pleasant, Tongyue and Yueyue. However, too many names distract JAC's energy. A large number of vehicle names cannot be recognized by consumers, but JAC has to invest in each brand.
The S5 is only part of the mid-to-high end plan. The Ruifeng brand is building the C-Class A6 and A8. Mainly for the official car market. "1.8T will meet the needs of official car procurement while achieving optimal power." Said Tao Zhi, deputy general manager of multi-functional marketing company of Jianghuai Passenger Car Company.
Heyue will focus on the A-class and A-class vehicles market in the near future. According to the plan, DKW will achieve the market scale of A-class and A-class vehicles. After Refeng determines the status of the C-class vehicle market, JAC will launch B-class and B-class models. .
In the area of ​​commercial vehicles, JAC is advancing the lightweighting of trucks, and through a joint venture with Navistar, it has solved the core powertrain technology. JAC hopes to stand firm on the mainstream power of commercial vehicles such as 2.8L, 3.0L, and 3.3L.
Jianghuai Xingrui, an emerging business of JAC, will formally go public in January this year following the official listing of the 5 Series in October last year. After that, models with an extra-long axis of 6 meters or more and an ultra-short axis of 2 meters or less will be introduced according to market demand. According to the plan, Xingrui will add 3,000 units to this year and add international markets next year. At least 15,000 vehicles will be produced and sold.
Once these markets are recognized, JAC will also change its impression of the original commercial vehicle economy car, and it may also return the “Jiangxi Huai†brand as needed.
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