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Under the economic crisis, the truck season was also sluggish.
For commercial vehicle dealers, the sales season is March each year. However, the reporter learned that this year's commercial vehicle dealership in Dongguan has encountered a rare dilemma. Not only is sales of new cars difficult, even used commercial vehicles are difficult to sell. Sales of commercial vehicles, especially trucks, have been hit hard, mainly because of a serious decline in manufacturing exports from Dongguan, which has caused logistic companies to face an unprecedented crisis, and the demand for downstream commercial vehicles has also been greatly reduced.
"Sales only half of last year"
There are more than 10 light trucks, heavy trucks, and pickup truck dealers on the Dongguan-Wanzhou section of Liaobu Motor City, where Dongguan has the most developed truck sales. "Compared with last year's January and February, this year's young card sales have fallen by a large year-on-year, and it is expected to be around 50%." Many light-card merchants told reporters, "This is the spring of the most gloomy business in recent years."
In Shengjia Motor City, located in Nancheng, Dongguan, more than 1,000 trucks, micro noodles, pickup trucks and economical cars were parked in the most prosperous business last year in March and April. However, in the Auto City last week, the reporter discovered that many stalls that once placed light trucks have been evacuated. There are only a dozen supermarkets with more than 2,000 square meters. A dealer selling trucks told reporters: “Since the second half of last year, the sales situation has continued to deteriorate. In January and February, we sold less than 10 vehicles in total at our booth.â€
Some truck sales outlets will evacuate
As a high-end truck sales brand, Dongguan Tongqing Motors, Isuzu’s sales are better than those of other brands, but it also dropped by around 20% year-on-year. “Our vehicle performance is relatively stable, and some large logistics companies are more willing to choose us when purchasing. Compared to some small brands, our sales are not bad.†And another brand of the same store sales Nanjing Iveco, as recognized in the market The degree still needs to be improved, and the sales volume has dropped by nearly 50% compared with the same period of last year. Dongguan Jiangling Motors once had an advantage in the mid-range truck market. According to sales personnel, it sold nearly 130 units in February last year. Miss Li of the Marketing Department revealed that sales in February of this year were still less than 70 units, and the rate of decline was also great.
The lower section of Guantai Road and the section of Humen Township were once the main locations for the sales of two other trucks in Dongguan. However, the reporter recently learned that some truck sales outlets are ready to evacuate. "The key is cost pressure is too great, profit is small, the car can not sell, such outlets may be removed." A dealer said.
Cause Analysis
Reason 1
Dragged down by manufacturing and logistics
According to reports, commercial vehicles appear to be “cold and coldâ€, which is related to the reduction in freight volume and export shortages of logistics companies in Dongguan. Sales of commercial vehicles will recover unless Dongguan's exports improve significantly.
The reporter learned that the greatest impact on the sales of trucks in Dongguan is the purchase of customers in Dongguan Township. Since manufacturing enterprises in Dongguan are mostly concentrated in the township, the products they produce are transported by logistics companies or by self-purchasing trucks when the business is booming. However, now that the financial crisis has had a profound impact on Dongguan, many enterprises in Dongguan have gone bankrupt or are out of business. Enterprises that can start production are very cautious in increasing fixed expenses, such as purchasing new cars. Some of the logistics and freight have been reduced, business has declined, and the purchase of new cars has also been reduced. This has also brought unprecedented pressure on the truck industry.
From the national market data, in January this year, commercial vehicles fell 36.46% year-on-year, an overall downturn. Dongguan was the most affected by the economic crisis, and commercial vehicle sales fell the most, exceeding 50%.
Reason 2
Used cars hit the new car market
The poor sales of new trucks and the large inventories of the used car market are also a reason. The reporter learned from Dongguan Xiqiao Used Car and Xinhuali Used Car Market that the current stock of trucks is quite large and the overall price is stable. Some merchants believe that if the second-hand car purchase price is lower, then the price of the new car will be difficult to withstand.
"If the sales of some brands are really bad in March, we may adopt a price cut strategy." The head of the sales department of Haotian, a car dealer in Dongguan Haotian told reporters.
The reporter learned from JAC trucks, Dongfeng light trucks and other businesses that because of the low profits of light trucks themselves, there is little room for price cuts. Relatively speaking, high-end light trucks and heavy trucks with higher profits still have a certain price reduction space.
Reason 3
Poor discharge of light trucks
It is understood that in Dongguan, the traditional sense of the customer target of light trucks - farmers, in fact, does not occupy a dominant position, the individual industrial and commercial households in the city is the main force for the purchase of light trucks. The small bosses are looking for "industrial bulls" who can afford to bear weight and at the same time have cheaper prices. Most of the questions about noise and exhaust emissions are not high.
When interviewing some of the light truck users, the reporter also found that many buyers are reluctant to spend more money to improve noise, exhaust emissions, and other aspects that are not noticed. For most of them, as long as they can avoid fines, the less money they buy, the more cost-effective they are.
Chen Xiaofeng, head of the marketing department of Dongguan New Donglian Automobile Trading Company, told reporters that the low price is an advantage that light trucks have, but self-importance, noise, and poor security have also become the biggest weaknesses. The most common is that emissions are not up to standard, especially after Dongguan implemented the national standard 3 in July last year. A large part of the light trucks were stopped outside the new standard threshold. Chen Xiaofeng said that if it is necessary to replace the engine, one of the real difficulties is the price increase. If you do not take into account this part of the user's needs, light trucks will face direct sales pressure.