Opportunities are still hard to find in Erdos

As a newcomer to the heavy truck industry, Changan ChongQing has been regarded by some people in the industry as lacking the ability to develop the national market and has only been able to live in Shanxi Province. However, in Erdos, the reporter discovered the dealer of Changan Heavy Duty Truck. As an important heavy-duty regional market, heavy-duty companies in Ordos battles almost all major domestic companies. Although there is great demand and many opportunities, in Ordos, can heavy truck "new recruits" share such a sales feast?

New brand is hard to stand on

“We talked about this project early this year. We will begin selling Chang'an heavy trucks in April and May, but sales have not yet risen.” Sun Jun, Deputy General Manager of Changchun Chongqi, Jindu Port, Ordos City, told reporters: “The reasons are many reasons. , It takes time for the new brand to be approved by the user."

Indeed, for any mature market, it is very difficult for “new recruits” to win the ideal market share at the first time, not to mention the heavy-duty market where local demand is different and users prefer different ones. It is not only difficult for Changan Heavy-Duty Trucks and other heavy-duty trucks to enter the initial stage of the "new recruits". Even many old heavy-duty truck companies have encountered "Waterloo" in the Ordos market. An unnamed heavy-duty truck dealer stated: “Before a certain heavy truck company made technical upgrades and product platforms changed, the company could not restore its market share in Ordos for a long time.”

It can be seen that the Erdos heavy truck market does not exclude the entry of new brands, but the acceptance of new brands is indeed not high. As a result, companies such as FAW Jiefang and Dongfeng Commercial Vehicles in the field of road transport, China National Heavy Duty Truck, Shaanxi Heavy Duty Truck and other companies in the field of engineering vehicles are not difficult to understand the strength. On the one hand, it is a booming market demand, on the other hand, it is a difficult entry barrier, which makes the heavy truck “recruits” love and hate the Ordos market. "It is precisely because of this that some companies have adopted some aggressive market operation modes and have achieved certain results in the short term, but they have also disrupted the normal market order," said heavy truck dealers who declined to be named.

New products difficult to promote

Not only is it difficult for new brands to enter the market, but the promotion of new products in Ordos has also encountered resistance. According to Sun Jun, the Changan heavy trucks sold by the company are all diesel vehicles instead of the natural gas vehicles that Changan Heavy-duty trucks promoted at this year's Beijing International Auto Show.

“Arguably, Erdos is known for its “elevated brilliance”, which includes abundant natural gas resources.” Sun Jun said: “In the Ordos market, natural gas trucks are difficult for users to accept.”

The replacement products of some companies also need to undergo two to three years of market cultivation to recover. This is of course due to the laws of the market, but it has brought about some inconvenience to the Erdos heavy truck market which is in a period of vigorous development. For example, if a new model of a company's focus on market changes is delayed due to promotion difficulties, it may result in the market still focusing on old models, and the structural adjustment of models will face greater difficulties.

Most of the taxis in Dongsheng District of Ordos have been refitted, usually dual-fuel vehicles, which also provides ideas for the promotion of natural gas heavy trucks. A person in charge of a special vehicle company said: “Users have doubts about the power of natural gas trucks. We do not think it is a big problem. However, we believe that the use of dual fuels is closer to market demand. On the one hand, this model can be used to a greater extent. The local gas source advantage can be utilized; on the other hand, the dual fuel design can also use different drive fuels depending on the specific road conditions to achieve the goal of reducing emissions and reducing fuel consumption as much as possible.”

For the market "sword to walk forward"

Up-and-coming youngsters must grab the site, hindering the promotion of new products and new brands; existing market leaders must consolidate their position and benefit from this inertia in sales. In order to compete for market share, many heavy-duty "recruits" companies have devoted themselves to Ordos. "Some companies are looking for a price war, and some companies provide financial services. In short, as long as they can enter the market as soon as possible and can stabilize their share, it can be said to be 'all show supernatural power'," said the heavy truck dealer who declined to be named.

“Before, there were more than 90 dealers with heavy-duty trucks in Ordos, and the chaotic market order was evident.” The distributor further introduced: “It is precisely because of the inertia of the heavy truck market in Erdos that the heavy truck brands The level of acceptance in the user's mind is different, leading to disorderly brand competition and burying hidden dangers in the heavy truck market."

According to the dealer’s analysis, after the “prosperity” of good sales but insufficient profits, the heavy-duty truck market in Ordos may face a “big reshuffle” in recent years, especially the layout of outlets is too unreasonable and the marketing methods are too utilitarian. Dealers are most at risk. He said: “The Erdos heavy truck market is currently in a period of rapid development, and it is very likely that it will enter the structural adjustment period in the near future. If the heavy truck 'recruits' can be deeply cultivated, they will not necessarily have no chance.”

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