On November 5, during the 4th Commercial Vehicle Forum organized by a leading newspaper, Zhang Xiaokai, vice president of the China Machinery Industry Federation, emphasized the importance of strategic development for China's commercial vehicle industry in the context of national sustainability. He urged companies to understand current market conditions, adapt to emerging trends, and restructure their product portfolios to focus on three key areas: "large, fast, and specialized."
Zhang explained that "large" refers to heavy-duty vehicles with high carrying capacities, designed for improved performance and precision. These vehicles offer greater efficiency and better economic returns. For instance, after nationwide enforcement against overloading this June, models with 12-ton and 15-ton capacities saw a surge in demand, with production increasing significantly. This trend shows that users are increasingly recognizing the value of larger trucks in maximizing profitability.
He added, "Users are smart. They know how to save money and boost profits." In the past, companies might have used two trucks to do the work of one, but now, the goal is to make one truck perform the job of two, or even three. This shift underscores the growing trend toward large-scale development in the trucking industry.
The concept of "fast" involves maintaining high-speed operations while improving reliability. Zhang noted that in the past, Chinese trucks were often overloaded but ran slowly, likening them to "many outfits and joggers." However, modern logistics demands speed and efficiency. As he put it, "more equipment, faster operation" is the way forward.
To illustrate this point, Zhang cited the example of coal storage in cities. Previously, large amounts of coal were stored in winter and transported in summer, causing environmental issues. Now, the process has been shifted to transport, requiring vehicles to be efficient and reliable. This change highlights the need for faster, more dependable transportation solutions.
"Specialized" means developing vehicles tailored to specific industry needs, with high technical content and strong applicability. Zhang pointed out that universal vehicles may seem versatile, but they often fall short in meeting real-world demands. Specialized products, on the other hand, are more effective and widely accepted. He mentioned Shenzhen CIMC, the world’s largest container company, which equips its trucks with air suspension and GPS systems to meet high-performance standards.
In addition to these strategies, Zhang also addressed concerns about import regulations affecting commercial vehicle companies. While some worry about potential restrictions on importing parts, he clarified that the policy primarily targets sedan manufacturers. The impact on commercial vehicle companies is expected to be minimal, as import tax rates for commercial vehicles are much lower than for passenger cars.
Despite this, Zhang emphasized that commercial vehicle companies must strengthen their own capabilities, improve technological absorption, and enhance their competitiveness. He also called for greater recognition of agricultural vehicles, arguing that they should not be restricted in their development. Although some view rural passenger car development as a mere formality, Zhang pointed out that these vehicles have grown organically due to real demand from rural areas.
He concluded by highlighting the importance of investing in research and development for rural markets, noting that China’s vast and diverse regions require different types of vehicles. By focusing on user needs and developing appropriate solutions, the industry can achieve sustainable growth and better serve the public.
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