The biggest challenge for commercial vehicle exports is localized production


Last year, due to the impact of the Diaoyu Islands incident, the annual growth rate of sales of Dongfeng Motor, a Japanese-based joint venture company, was lower than the industry growth rate. From January to March of this year, the sales growth rate of DFG is still close to 13% of the industry. After half a year passed, how is the sales of Dongfeng Motor? What is the key direction of its future development? How is Dongfeng planning for new energy R&D? What challenges does the export business of its commercial vehicle segment face? Is there a plan for the procurement of Dongfeng in full swing? With these questions, on June 21st, the reporter entered the Dongfeng Automobile Group with the “R&D Research Team of China's Domestic Automotive Manufacturers” of Sohu Automobile. Liu Weidong, deputy general manager of Dongfeng Motor Co., Ltd., Lei Ping, head of Dongfeng Motor’s management department, and Dongfeng’s new energy vehicle Gao Zhao, Director of Business Platform, and Jiang Ming, Director of Dongfeng Commercial Vehicle Technology Center, answered questions.

Q: Affected by the Diaoyu Islands incident, the sales growth of Dongfeng last year was lower than the growth rate of the entire industry. What is the sales situation of Dongfeng in the first half of this year? Does this year's sales plan change? What is the focus of future development?

Lei Ping: Dongfeng sold 19.31 million vehicles last year, the growth rate is indeed lower than the industry's growth rate. From January to May of this year, 1.23 million vehicles are now sold, an increase of 4.55%. From January to March, our growth rate was 12.87 percentage points lower than that of the industry, but this gap has changed in May. The sales growth of Dongfeng in May has been higher than the industry growth. Dongfeng now ranks second in sales, ranking behind SAIC Motor. This year it hopes to grow 8% to 3.32 million units based on the sales of 3.08 million last year. The future work focus of self-owned brand passenger vehicles is also the main growth force now. At present, the total number of independent brands in the industry is now ranked third. Regarding self-owned brand passenger cars, from the sales situation of last year, SAIC Motor was the first 680,000, Changan 410,000, and Dongfeng 280,000 were the third.

Q: What is the progress of Dongfeng in the research and development of new energy vehicles? Is there a clear budget for new energy vehicle R&D investment? What are the new energy vehicles that have been mass produced?

Huang Zhaoqin: Dongfeng Motor has a feature in the protection of new energy development resources. It is the project involved in all planned vehicle models within the group. Regardless of its system and ownership, all research and development funds are fully borne by the headquarters. Music Wind has arranged a budget of 3 billion yuan in funds to support the five-year projects for new energy vehicles. Of the 3 billion in the middle, 12 billion are for R&D, and 18 billion are for supporting the industrialization of some projects. stand by. The basic principle of Dongfeng in the field of new energy vehicles is: Continuously boldly invest in research and development, but the market is cautious. In the planning of new energy vehicles, Dongfeng will develop and nurture pure electric cars as a mid- to long-term focus, and regard hybrid power as the focus of the phased industrialization. In the direction of hybrid powertrains, hybrid buses have been developed with emphasis on mass production. There has been a large-scale demonstration run on buses in Wuhan. Several models have also been developed for pure electric cars. The truly mass-produced cars will be concentrated on small and lightweight cars.

Q: What are the biggest challenges in the export of commercial vehicles? It should be said that Dongfeng has certain advantages in the export of commercial vehicles, but it also encountered some barriers. What measures has the Dongfeng adopted to deal with these barriers? What is the future market strategy?

Liu Weidong: The biggest challenge for the export of commercial vehicles is the necessity of localized production. For example, we recently analyzed the Russian market. There are 166 bills (referring to the “Industrial Assembly” policy introduced by the Russian government in 2005 to encourage overseas manufacturers to invest and set up factories in Russia. Overseas automobile manufacturers that have signed "industrial assembly" agreements with the government can enjoy parts import tariffs as low as 0-3%, while the normal vehicle import tariff is 25% for passenger cars and 10%-15% for commercial vehicles.) There is a luxury tax of 10%. Last year, China exported 100,000 cars to Russia, but none of them enjoyed the 166 Act. We now feel the greatest pressure, not only on the brand channels, but on suppliers. The core challenge for us is to continue to insist on localization. There are also cost requirements. Not only is the policy required, but apart from policies, the cost of packaging logistics is very large. It is the Eurasian Continental Bridge, and there are no sea routes. This cost accounted for 30 %.

Q: Major companies now pay more attention to joint ventures, and the joint venture company of Dongfeng Nissan has also introduced many Nissan management systems. Based on your experience and experience, how can the experience of the joint venture have an effect on the system construction of independent brands? Promote effect?

Jiang Ming: Although Nissan has no truck technology, its management system has helped us a lot, especially in the process of R&D. We have grasped some QCDs and grasped quality, cost, and delivery time. At that time, Nakamura's president was very strict.

At this stage of cost control, we are very painful. For example, the price of a car is the average selling price of the market. The set target is 100,000. Now it is not only sold to 100,000. In terms of cost control, Chinese leaders at the time felt very Difficulties, but the Japanese president said that he must do it, but later extended it for about half a year or did it. Looking at this now is a very good thing. After setting a goal, after the target discussion is completed, all R&D personnel must achieve it, including R&D, manufacturing, and procurement. It is a full value chain. Through so many years of operation, Nissan did not support commercial vehicles, but in the early days Nissan sent these commercial vehicles to those who were very strong. They were able to return to Nissan to get a lot of guidance on Nissan's operation in commercial vehicles. It is forced to implement it. Dongfeng is also a company that is very open and willing to learn. We have accepted Nissan's processes in this area and we have benefited from these Nissan experiences.

Question: At present, the government is more inclined to promote the purchase of official vehicles to its own brand. How is Dongfeng planning in this market?

Liu Weidong: We started our official vehicle business only in 2009. It is true that the official vehicle is an imminent one for us. There are also plans for the Dongfeng. We have not yet officially released it. The internal name is Dongfeng No.1 Project and we develop high-end cars. The Beijing Auto Show next year will probably have The concept car came out and hopes to put it on the market by the end of the 15th and early 16th.



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