People in the car circle know that Weichai has always been a leader in high-power diesel engine products for heavy trucks, but it has been obscured in diesel engines for medium trucks.
Recently, the reporter got information from Weichai Power Co., Ltd.: Weichai wants to open up the medium-sized truck market. This protagonist is not from the Steyr family, but from another international engine brand - Deutz.
Weichai wants to take advantage of Deutz’s efforts in China Card Market
An executive from Weichai Power told the reporter that the truck market is the pillar market for Weichai for many years. Due to historical reasons, the market share of Weichai in the heavy-duty truck market is relatively high, which is mainly reflected in the 280 vehicles supporting more than 18 tons of load. Horsepower above the engine. Affected by the country's macro-control and various aspects of economic development, the domestic heavy-duty truck market has experienced a severe decline this year, and it is expected that the output will fall by 40% year-on-year at the end of the year. With the efforts of Weichai, the number of engines for heavy trucks has not fallen compared to last year, and the market share has also increased.
However, there are also medium trucks and light trucks in trucks, and the market share of Weichai is relatively low. It is reported that in order to avoid market risks, and strive to maintain the advantages in the diesel engine field, Weichai has planned to make a full range of truck diesel products. In this way, the impact of the country's macro-control will be less, and the ability to resist risks will also increase.
At present, the Chinese card market needs mainly 4L and 6L engines with 150 horsepower to 240 horsepower, of which 6 liters are mostly. In this regard, Weichai already has a mature product, the Deutz engine. The matching rate of Weichai in the heavy-duty vehicle market is relatively high, and its reputation is also good, and some end customers have already had a certain degree of brand loyalty. This is the unique advantage of Weichai. With a ready-made service and accessories network, Deutz products also have a great advantage in terms of after-sales service and parts supply. Therefore, from the perspective of prospects, DEUTZ products have a certain degree of competitiveness.
A high-level person in charge of marketing in Weichai believes that in terms of the current market conditions, China Heavy Duty Truck, Shaanxi Auto, Hongyan, North Benz, and Beiqi Foton are mainly engaged in heavy-duty trucks. Not much, some are not even, so it is more difficult to use existing customers to open up the market. The domestic large-sized truck manufacturers have their own engine plants, which are protected by the matching of the engine, and external matching is difficult to achieve. Therefore, at present, Weichai can only start from small and medium-sized Chinese card companies, and sales may not grow too fast for a short period of time.
However, this person said that a number of medium-sized vehicles with DEUTZ engines have recently been listed. These vehicles have seen a significant increase in power, prices are also much cheaper, and the price/performance ratio is very competitive. In addition, since the original maintenance and service network can be used, this can also save users a lot of money. Therefore, he is still very confident that the Deutz engine will hit the card market.
Deutz becomes an important supplement to Weichai in the passenger car market
According to relevant sources, although the Weichai Deutz cannot achieve rapid growth in a short period of time, the Deutz engine can achieve rapid growth in the passenger car market.
According to briefings, the passenger car market has a very good prospect. The market is relatively stable whether it is road passenger transport or public transportation. However, due to fierce competition, it is impossible for companies to achieve 30% or 40% growth.
The passenger car market has a unique feature that the engine power requirements are relatively high. According to different models, different uses, and different customer needs, the requirements for the engine are also different. Among them, there are many engine requirements for medium displacement. For Weichai, although the original high-power engine can meet the needs of some passenger car products, there are many types of passenger cars that cannot be met. Now, Deutz engines are put on the passenger car market. This is equivalent to Weichai. Expanded a large market.
This is in line with Weichai's product strategy. Weichai only had one Steyr product and was a large-tonnage truck engine. Now they are engaged in small-tonnage vehicles and have been developing together in various aspects such as passenger cars, China Cards, and light trucks, hoping to gain greater market share.
Service and network advantages will become the foundation of Deutz’s foothold in the market
For Deutz’s fate in Weichai, 1998 and 2003 were two key periods. In 1998, Weichai and Deutz built a joint venture plant to produce the Deutz engine, which was a sensation. Afterwards, the joint venture company suffered various twists and turns and its performance was hardly satisfactory. By 2003, when the Chinese took over the business of the joint venture company, the engine of the Weichai Deutz trademark gradually began to spread across the north and south of the river.
If the establishment of the joint venture in 1998 was a chess piece laid out by Weichai in advance, then after 2003, this piece will only begin to function. In the past three years, Deutz products have sold 15,000 units. Although not too many, but with the development of the market in the future, it is difficult to guarantee that it does not become a "dark horse."
In addition to good product quality, a mature network is available and is also a catalyst for the rapid growth of Deutz engines in the future. According to reports, Weichai now has more than 1,400 various service outlets. Tan Xuguang, the general manager, began to take over the network since he took office. It has been six or seven years since then. The cumulative investment is at least one billion yuan. The annual service fee is very large. This size is rare in general engine companies.
According to analysts, the service and accessories network is very important for the development of the company. If we look at the experience of certain international giant commercial vehicle and engine brands in China at the moment, we will know that the quality of these products is very good and the technical level is also very high, but if there is no local repair, replacement parts have to wait for several Months, the pressure from the user can be imagined. Because for commercial vehicles as production materials, as long as one day can not run, the user's losses are huge.
It can be said that convenient services and huge network advantages may be the foundation and foundation of Weichai Deutz's future based on the market.
View related topics: Weichai Power: Expanding Auto Parts Gold Industry Chain
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