Expanding the "Commercially-Commercially-Combined" Strategy Dongfeng Liu Auto to Create a Universal Motor Vehicle


In time, Dongfeng Liuzhou Automobile Co., Ltd., with SAIC-GM-Wuling in Guangxi Liuzhou, is likely to come out and become a dark horse in the auto market. This is a commercial vehicle manufacturer with a partial presence in the south, although it is not dazzling in the independent brand camp. However, it is a "potential stock" that is not easily perceived by the outside world.

From the data point of view, from January to October this year, the growth of truck sales of Liuzhou ranks first in the industry, accumulatively selling 35,457 vehicles, an increase of 13% year-on-year; cumulative sales of passenger vehicles reached 146,625, an increase of 30%. The manufacturers expect to sell 220,000 cars in 2013, with sales revenue of 16 billion yuan.

Part of this result is due to the better environment in the auto market. According to data from the China Association of Automobile Manufacturers, from January to October of this year, the year-on-year growth of China's auto production and sales exceeded 13%, which is twice the growth rate of last year. The more important aspect is that the sales volume of passenger car brands, which account for about 80% of Dongfeng Liuzhou Auto, is growing rapidly and has strong growth potential.

The production of this sales volume means that another company has completed its shift from a commercial vehicle to a passenger car.

In 2010, this car company, which relied on commercial vehicles, had a sales ratio of 5:5 for commercial vehicles and passengers, and only 50,000 passenger cars. In 2011, in the 140,000 sales volume of this company, passenger cars reached more than 100,000 vehicles, accounting for 70% of all production and sales. At present, the sales ratio of commercial vehicle passenger vehicles is 2:8.

In the future, the development plan of Dongfeng Liuzhou Automobile is to maintain the development advantages of commercial vehicles and continue to expand the market; on the other hand, we must continue to transform from passenger cars to the current mainstream MPV-to-SUV models, and further enter the sedan. In the field, it eventually became a versatile car company that took both business and leisure opportunities.

Dongfeng Liuzhou High-end Heavy Truck Pa Long Cummins M7C
Expanding the "Commercial Strategy"

Dongfeng Liuqi was founded in 1954. In 1969, it successfully developed "Liujiang" brand trucks and was the first automobile manufacturer in Guangxi. In 2003, Dongfeng Liuzhou Auto was incorporated into Dongfeng Motor and Nissan’s joint venture, Dongfeng Motor [0.00% Funds Research] Co., Ltd., and began production and sales of heavy trucks. Dongfeng and Nissan each hold 37.5% of Dongfeng Liuzhou, and the Liuzhou government holds 25% of the shares.

Beginning in 2001, Dongfeng Liuzhou Automobile Co., Ltd., which has already established a large-scale commercial vehicle, began to set foot in passenger cars and opened the curtain of commercial vehicles to passenger vehicles. That year, Dongfeng Liuqi launched the first business MPV popular Ling Zhi; 2007, Dongfeng Liuzhou launched the first sedan products popular King Yi. However, it is also very difficult to “transport business”. It was not until 2010 that Jingyi began to "back-feed" its parent company. “Before it was a profit-saving vehicle for commercial vehicles,” said Cheng Daoran, general manager of Dongfeng Liuzhou Automobile.

In 2011, Dongfeng Liuzhou Motor Co., Ltd. ushered in a turning point, and Dongfeng Liuzhou's commercial-occupancy strategy has already achieved initial success. Under the poor performance of the overall auto market, Liuzhou Automobile Co., Ltd. successfully seized market opportunities through its own transformation. The total sales volume reached 144,500 units, sales reached 13 billion yuan, and both sales volume and sales reached record highs.

To this end, at the annual meeting of dealers in 2011, Dongfeng Liuzhou Automobile also proposed a strategy for future development - "2010-2015 "1+1" Ascendas Plan". In this plan, Dongfeng Liuzhou Automobile has established further To expand the development strategy of "Commercial development and business promotion".

The plan points out that by 2015, Dongfeng Liuzhou's commodity competitiveness and marketing competitiveness will be fully enhanced, and the market position will advance one level from the current third camp and enter the second camp.

In terms of sales volume, by 2015, Dongfeng Liuzhou Automobile will achieve a substantial increase in the sales of commercial vehicles and passenger vehicles, including 100,000 commercial vehicles and 200,000 passenger vehicles. Among them, the C platform and the B platform will go hand in hand. Achieve 100,000 vehicles, the market share of commercial vehicles will reach 10%, and the market share of passenger vehicles will reach 1%.

Improve passenger car product layout

This plan later derived the mid-term business plan of Dongfeng Liuzhou Passenger Vehicle brand Dongfeng (2013-2017 mid-term business plan). The plan announced at this year's Shanghai Auto Show is an important opening for Dongfeng Liuzhou Passenger Vehicle and an important foothold for Dongfeng Liuzhou's “Commercial, Commercial, and Parallel” strategy.

According to the plan, in the next five years, Dongfeng will further accumulate brand value and expand its market share. By 2017, sales will exceed 200,000 units; from 2013 to 2016, 7 new models will be launched, of which 4 will be MPVs. Business MPV and home MPV two series, and strive to become the mainstream domestic passenger car manufacturer.

In the product line, in addition to the MPV market, Dongfeng Liuzhou Automobile is also continuously improving its product line for the Jiajia and SUV markets. Dongfeng Fashion plans to further enrich Jiajia and SUV products on the basis of existing Jingyi series. The new SUVs and new sedan products will be launched in 2013 and 2014 respectively. This will undoubtedly accelerate the further improvement of Dongfeng Liuzhou passenger car product line. .

At present, Dongfeng popularly forms three series of models: popular CM7, popular Lingzhi and popular Jingyi, under the jurisdiction of Ling Zhi M5, Ling Zhi M3, Ling Zhi V3, Jing Yi XL, King Yi LV, King Yi X5, popular CM7 and many other models.

In order to support the further sublimation of the “Commercial and Commercial” strategy, Liu Auto also plans to upgrade the entire production and sales system. Liuzhou plans to achieve a target of double production and sales volume through 2017 through a series of expansion capacity plans. In addition, Dongfeng Liuzhou Automobile will also enhance its marketing power through five major upgrades in sales capabilities, channel competitiveness, regional competitiveness, service competitiveness, and management capabilities.

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