Rural Reform Brings Opportunities Diesel Engine Enterprises Pay Attention to Rural Market

The spirit of the reform and development of the rural areas of the Third Plenary Session of the 17th CPC Central Committee, and a series of policies introduced by the country to expand domestic demand and promote stable economic growth will accelerate the development of the rural automobile market; at the same time, it will also provide a once-in-a-generation upgrade for rural vehicle use. opportunity.

â–  Diesel Engine Enterprises Focus on the Rural Market

Some responsible persons in engine companies believe that in the long run, the new round of rural reform is an opportunity for enterprise development.

Industry sources pointed out that the core of agricultural industrialization reform is the free flow of land, which may promote the flow of capital to rural areas. In this way, the process of collective collection of agriculture and the industrialization of agriculture will be accelerated. The agriculture-derived industries will have greater development after the scale and industrialization of agriculture. The development of the agricultural machinery and agricultural product transportation market will bring opportunities for the development of the automobile industry.

Although the development of the young diesel engine industry has been slow in recent years, the state supports the development of the rural economy and allows the engine production enterprises to attach great importance to the rural market. Agricultural vehicles and their parts and components companies have performed outstandingly, and their production and sales have grown at a rapid rate.

The FAW Xichai agricultural vehicle engine was put on the market this year and the market performed well. Recently, the salesperson of Xichai told reporters that the 4DW and 4DX farm vehicle engines have sold 40,000 units this year.

Dongfeng Chaochao’s sales department staff said that the rural market should not be taken lightly. Chaochai is developing an engine for the rural market. The prototype has already come out.

â–  The price is the first element

The situation of China’s highways has changed dramatically, and highway mileage has increased significantly. The mileage of highways in 2010 will reach 65,000 kilometers. The village-to-village project has opened more than 80% of rural villages with asphalt roads, and the use of rural diesel vehicles has greatly improved.

Li Shujun, deputy dean of the Chinese Academy of Agricultural Mechanization Sciences, said: “The rural diesel vehicle market in China will be a specific diesel vehicle market that exists for a long time. The cultivation and development of the rural diesel vehicle market will be a long-term strategic task.” It is believed that companies must strengthen their research on the rural diesel vehicle market, gain an in-depth understanding of market demand, and identify entry-level products. In the market to be developed, diesel vehicles are more and more used as a unity of production materials and means of transport. Farmers are more concerned about the durability, low cost and practicality of diesel vehicles. The price is still the first element of the rural diesel market.

A person in charge of the sales department of an engine company said that the problem is not that there is no product, but how much farmers can afford the price. The prices of products with strong dynamics, low fuel consumption, and low emissions are naturally higher, and whether or not they can be accepted by farmers is the key.

When interviewing some engine companies, reporters found that although some enterprises are concerned about the changes in the direction of rural reform policies, they are more likely to wait and see than to act.

Some responsible persons of enterprises stated that the development of rural economy in our country is unbalanced and varies greatly. It is necessary to make a survey on the target market before making a decision. There is a process from product development and production to acceptance by the market, and there are also market risks. Rural users are more sensitive to product prices. Only when the country introduces a more specific policy for benefiting farmers and allows farmers to purchase products with high quality and low price, can the rural diesel vehicle market really develop.

â–  Develop technologies suitable for rural areas

At present, the process of small urbanization or semi-urbanization in rural areas is accelerating, the conditions of rural roads are improving, the living standards of farmers are constantly improving, and the concept of farmers’ consumption is also undergoing profound changes. They are also eager to multi-purpose products suitable for rural areas.

Agricultural vehicles are currently the most important transportation tools in rural areas. In order to solve the problems of energy shortage, environmental pollution, and hidden safety problems, agricultural vehicles need upgrading.

Some companies realize that developing rural markets requires not only excellent product quality, but also the need for enterprises to make technical improvements in accordance with user needs. Rural users began to pay attention to the safety, comfort, and service quality of cars. Product adaptability is strong and reliability is high.

The subsidiaries of FAW Xichai's production of agricultural vehicle engines are independent. Last year, FAW Wuchai strengthened the production of agricultural vehicle engines and upgraded its product technology, such as the production of 4DW, 4DX and Aowei engines in one line. "Compared with other companies, agricultural vehicle engine companies should have certain advantages in the production process and process," said the company's sales staff.