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From January to April of this year, the total sales volume of heavy trucks with a gross domestic product of over 14 tons totaled 249,194, an increase of 56.43% year-on-year, and an increase of 89,891 vehicles.
On the sales charts, FAW took the top spot with 57,513 units, a year-on-year increase of 57.11%, which was a year-on-year increase of 20,906 units. Dongfeng ranked second with sales of 49,494 units, an increase of 22,700 units, an increase of 84.72% year-on-year. This confrontation in the heavy-duty market has only just begun for the old comrades who have fought for many years in the China Card market.
30-year-old rival is similar to two strong
Since 1978, the confrontation between FAW and Dongfeng has lasted for 30 years.
FAW and Dongfeng, both of which are state-owned large-scale automobile groups, share many similarities. First of all, they have sufficient old capital and large enough stalls. Their respective parts and components systems (including main components such as engines and axles) are relatively complete; secondly, FAW and Dongfeng, which started with China Card, are entering the heavy truck market. Inevitably, they were inevitably “squeezed†by the “Steyr System†but they quickly seized some of the heavy truck market share after launching new products. Third, according to sales data since 2001, FAW and Dongfeng’s heavy truck sales After all, with the exception of FAW in 2005 and 2006, the sales of the two companies are quite similar.
In the brand, the two companies are also difficult to distinguish. In overseas markets, FAW and Dongfeng’s brand influence in China has also brought a lot of convenience to product promotion. Moreover, the advantages of FAW and Dongfeng in the China Card market will continue to play a role: Once the Chinese card users have the need to purchase heavy trucks, it is very likely that they will continue to choose the brand they previously used.
At the same time, after many years of operation, the sales and service network of the two companies are all perfect, and they also attach great importance to service brand building. The "moving service" of FAW Liberation and Dongfeng's "sunshine service" have increased their influence.
Finding Differences
The two companies that look similar to each other have also been exploring their respective development paths. In particular, after the establishment of the Dongfeng Motor Co., Ltd. commercial vehicle company in Shiyan in 2003, the differentiated development of FAW and Dongfeng has become increasingly evident. Compared with FAW's relatively rigid system, Dongfeng's cooperation with Nissan Motor Co., Ltd. has enabled Dongfeng to have a more flexible operating model, and it has also given Dongfeng a slight advantage in the heavy truck market.
We can see that on July 15th, 2004, Liberation of Aowei heavy trucks went offline and it experienced many twists and turns in the process of being accepted by the market. After Dongfeng introduced Tianlong in 2006, it took only two years and the market position has stabilized.
This article will try to use SWOT analysis to more intuitively analyze the two companies.
FAW SWOT Analysis
S advantages: R & D capabilities are second to none in the country, and there is no "core" problem when upgrading products; liberation of heavy trucks is of light weight and meets the needs of users under heavy toll collection.
W Weaknesses: Considering that the marketing strategy is not precise enough, and marketing is not as good as it should be; system issues, an industry source stated that after the release of Aowei, there have been many problems, but the same problems still exist after the launch of J6. "The biggest problem with FAW is not the technology but the system."
O Opportunities: The trend of truck specialization is obvious. In the past year, FAW Liberation has pushed for a “joint share†policy and further strengthened cooperation with domestic special-purpose vehicle companies; it has occupied two heavy truck markets in the northeast and north China, occupying convenience in terms of geographical position, and also in Liuzhou. With FAW Liute, taking into account the South market and the ASEAN export market.
Challenges: Challenges brought about by the implementation of State III emission standards, product price increases, service system upgrades, etc.; Steyr-based companies' products are also constantly improving, and the competition in the heavy-duty truck market is fiercer; service networks are facing challenges, and how to meet the requirements of the State III Heavy truck maintenance and service upgrades are a major challenge for FAW.
Dongfeng SWOT Analysis
S advantages: Actively cooperate with internationally renowned big companies, product development methods and new product technical performance has been greatly improved; Dongfeng Tianlong has been recognized by the market, can already “precisionâ€, further improve the product lineage, enter the market segment.
W. Weaknesses: The ability to innovate in technology needs to be strengthened. Resolving cost pressures and raising market awareness has become a difficult problem facing the east.
O Opportunity: Adjacent to the “special car capital†Suizhou, Dongfeng has a “close to the water†and has many innate advantages in the special-purpose vehicle market. After two years of operation, Tianlong series products have been recognized by users and markets, and are favorable to Dongfeng. Tianlong further explored market segments.
T challenge: Dongfeng Tianlong quickly stands firm and has a direct relationship with Dongfeng, which is good at operating large customers. Whether Dongfeng Tianlong can be accepted by more individual car buyers as soon as possible is critical; Dongfeng and Volvo have not been dispersed in the joint venture, and the future direction of Dongfeng is still uncertain.
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