At the first China Truck Model Awards Ceremony held recently, many people in the industry praised the achievements of the truck industry in China. However, there is still some concern about how long the current comparative advantage can be maintained.
Key technologies need to be remedied
Li Qingwen, president of the China Automotive News, pointed out that although the self-owned brand trucks currently occupy an absolute market share in China, it does not mean that they have mastered absolute competitive advantages. Tan Xiuqing, vice president of Shandong Automotive Industry Group, strongly favors this view. According to Tan Xiuqing, in recent years, self-owned brand trucks have indeed narrowed the gap with foreign countries, but in some areas, with the upgrading of products, there are signs of widening gaps.
In terms of product research and development, key components of the engine, such as axles, automatic transmissions, and other key components, lack products with high-tech content and independent intellectual property rights, and the degree of dependence on foreign technology is still very serious. It is understood that key automotive electronics technology is still monopolized by foreign countries. At the same time, due to the fact that the penetration rate of automotive electronic products in domestic trucks is not high, companies do not pay enough attention to R&D in this area.
Last year, the liberation J6, proud of the Chinese people, stepped off the production line, coupled with the ongoing new car development projects of Sinotruk and Dongfeng Commercial Vehicles, and our heavy truck companies have a deeper understanding of the vehicle design. However, Tan Xiuqing told reporters that the new models being developed by several domestic heavy truck companies are mostly commissioned by foreign companies.
Corporate costs continue to rise
Earlier this year, news of iron ore price hikes again touched the tight price nerves of our truck companies. In fact, in the past two years, the prices of various raw materials have been continuously rising, which has caused truck companies to suffer. Peng Huacheng, a researcher of JAC Heavy Duty Card Market Department, believes that although the increase in raw material costs will increase the company's costs, the increase in labor costs and management costs cannot be ignored.
Since January 1 this year, China has begun to implement the new labor law, further enhancing the protection of employees. This point is even more stressful for auto companies that are trying to squeeze costs and have many unreasonable problems in the employment system.
Peng Huacheng believes that domestic truck companies have begun to consciously learn from advanced foreign companies and improve their management. However, this kind of learning mostly stays in the introduction of advanced concepts and theories, and it is difficult to digest and absorb them in a timely manner, transforming them into suitable management methods for the company. As a result, the advanced concept not only failed to achieve the intended purpose, but also caused the internal friction of the company.
What is the relationship between the zeros?
According to Tan Xiuqing, in the cost structure of trucks in China, the proportion of material costs and processing costs is relatively large, and research and development costs are low or even absent. "This is related to the early introduction of foreign models or technologies in China." Tan Xiuqing believes that "although in recent years, the state has continuously encouraged enterprises to independently research and development, but it is not optimistic to implement specific enterprises. Some companies fight in a cruel price war. Weakness or reluctance to pay for research and development."
“This situation is caused by extremely unreasonable product prices and the abnormal relationship between vehicle manufacturers and parts and components companies.†Tan Xiuqing said, “In the opinion of vehicle manufacturers, instead of investing their money in the independent research and development of the future, It's not as straightforward as giving consumers a greater role in sales."
In the recent period, steel prices have risen sharply, and heavy-duty steel companies with large steel makers have not moved much. A person in charge of a truck company who did not want to disclose his identity told reporters that companies are waiting to see if people raise prices, they will consider price increases, if someone cuts prices, they are likely to have to follow the price cuts. "Therefore, the company is now testing the ability of the company to absorb cost pressures. It is the best way to wait and see," he said.
An industry expert told reporters that a large part of the achievements made by truck companies in China are due to the cost support of parts and components companies. In foreign countries, parts and components companies are an important source for vehicle companies seeking technology upgrades, and the consequences of this “wholesome†policy for parts and components companies in China will gradually appear in the future.
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