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For mainstream car manufacturers, not many people are interested in low-end light trucks, and Liu Chengqiang is determined to feed on the quasi-blank area where the predators are scarce. Before that, he was already in a fierce competition and monopolized a million-scale agricultural vehicle market.
In recent days, when the wind light card F3 series formally went offline. According to Liu Chengqiang’s own plan, in 2007, wind light trucks achieved a sales target of 30,000 vehicles, in 2008 they reached 50,000 vehicles, and in 2010 they exceeded 80,000 vehicles, forming a light truck manufacturing base with a scale of 10 billion yuan.
Since 2000, when the wind has expressed its intention to acquire a number of auto companies, including Skylark, but due to the large price gap between the two sides, it has not been implemented. Subsequently, Liu Chengqiang joined the Double Star in the tire manufacturing industry, paving the way for the final entry into the light-card market.
On November 21, 2003, Shifeng signed a cooperation agreement with FAW Hongta, one of the domestic "Light Trucks and Seven Heroes," and used FAW Hongta's auto catalogue to produce its own car. According to the agreement between the two parties, Shifeng is the production base and supply source of the FAW Hongta light truck north of the Yangtze River. In 2004, the wind produced 4,000 light trucks.
It wasn’t until last year that the wind took the last bus to build a car. On October 17 last year, the National Development and Reform Commission formally approved the commercial vehicle project declared by the Shifeng Group, and when the wind acquired the automobile production catalog. This will probably become the last agricultural vehicle company to enter the automotive industry.
Surrounding cities in the countryside
Among the three series of light-card products currently launched by Shifeng, F1, F2 and F3, the first two are mainly aimed at the middle and low-end rural markets. Next, Liu Chengqiang was faced with powerful counterattacks from the absolute occupants of such markets as Futian and Jianghuai.
"In the market development, we adhere to the strategy of 'encircling the cities in rural areas'." According to Liu Chengqiang's plan, Fengfeng Light Cards first started from the rural market and concentrated on fighting for the low-end market. Then open up the county-level cities and prefecture-level cities. "After certain conditions are met, we will also enter the capital cities."
In the rural market, the current wind can be sold through more than 2,000 outlets established through agricultural vehicles. Timewind light trucks and its four-wheeled agricultural vehicles (ie, low-speed trucks) will have fierce competition here because the two markets are relatively overlapping. So far, the four-wheel agricultural vehicle is still the main product of the current wind, with annual sales of approximately 780,000 vehicles.
Although the three-wheeled agricultural vehicle was renamed as three-wheeled vehicle, four-wheeled agricultural vehicle was renamed as low-speed truck and the agricultural machinery department was placed under the unified management of the public security department, the preferential policies for the purchase and use of agricultural vehicles gradually disappeared. However, the price of agricultural vehicles is still far lower than that of light trucks, and there is no major difference in their uses. In particular, the four-wheeled agricultural vehicles and light trucks are almost the same in appearance and structure, but four-wheeled agricultural vehicles cannot enter the city, and light trucks can enter the city. Only. Therefore, in a period of time, light trucks will still compete with low-speed trucks.
Cheap invaders
The main competitive model of Shifeng Light Truck in the mid- to low-end market is the light truck of light trucks and Beiqi Foton, one of the three light truck sub-brands. How to change the existing market structure? When the wind is the price of the weapon.
In order to illustrate the cost advantage, Liu Chengqiang cited an example. “When the wind and Angang reached an agreement, the steel was shipped in accordance with our size requirements. This not only saves our processes, but also allows steel to be recycled.â€
At present, the prices of the three series of wind light trucks are lower than those of market leaders such as Futian and JAC. For this information, Zheng Gang, director of public relations at Foton Motor, did not comment, but he told reporters that the current market share of Foton light truck is about 33%, has been ranked first in the light truck market for six consecutive years.
To be sure, Futian, the boss of the light truck market, also has an advantage in cost. However, like the price war in the passenger vehicle market, it is inevitable that a latecomer will disrupt the existing market structure.
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