Dongfeng Motors and Foton Motor Co., Ltd.'s leading competition in 2011 is becoming increasingly fierce


Foton Motors has always been the champion of China's commercial vehicle industry. In 2011, the champion of Foton Motor will be challenged by the Dongfeng attacker. This contest between the commercial vehicle industry and defenders will be quite worth seeing.

637746 vehicles/669664 vehicles = 95.23%.

This is the second-largest number of commercial vehicle sales in 2010 (Dongfeng Motor Co.), which accounted for the proportion of sales volume of Beiqi Foton. This figure has set the highest record in recent years. The sales volume ratio of the two parties in 2009 was 449,900 units/58.85 million units = 76.45%; in 2008, the sales volume ratio was 377,700 units/40.59 million units = 92.88%.

Why did the gap between the two parties shrink rapidly in 2010?

First analyze the east wind. According to data from the China Automobile Association, in 2010, Dongfeng Motor Co. produced and sold 2,724,800 vehicles, an increase of 36.05% year-on-year, including 637,700 commercial vehicles, a year-on-year increase of 41.74%. Specifically, the rapid growth of Dongfeng Motor's commercial vehicle business is mainly due to the development of its two major segments.

The first is Dongfeng Commercial Vehicle Co., Ltd., which is the business segment of the Group's production of medium- and heavy-duty commercial vehicles. In 2010, it sold a total of 313,000 vehicles, an increase of 57.8% year-on-year. The second is Dongfeng Motor Co., Ltd., which is listed on the Shanghai Stock Exchange and mainly produces and sells light commercial vehicles (LCVs). In 2010, Dongfeng Motor sold 301,000 light vehicles, an increase of 44.8% year-on-year. The growth rates of the above two companies in the past year both exceeded the average growth rate of the industry and contributed greatly to the growth of Dongfeng Motor's performance.

For many years, Beiqi Foton, which has won the championship in sales and marketing of commercial vehicles in China, sold more than 680,000 vehicles in 2010, including 669,700 commercial vehicles (including Futian's light truck business, Auman heavy truck business, European V bus and landscape The business of light passengers, etc., increased by 13.80% year-on-year to 588,800 units in 2009, and continued to maintain a stable growth. Among them, the Foton light truck contributed more than 447,000 vehicles.

One is leaps and bounds, and the other is the slowdown in growth. The gap between the two sides has rapidly narrowed in 2010.

In fact, in the competitions between Dongfeng and Fukuda during these years, the disparity between big and small, the balance of power has also been repeated. In 2007, the gap between Dongfeng and No. 1 commercial vehicle sales was 62,000; in 2008, the gap was 28,900; in 2009, the gap was widened to 138,600; 2010 In the year, the gap was reduced to 32,000 vehicles.

According to this difference curve, two conclusions can be drawn: First, with the healthy growth of Dongfeng Tianlong heavy trucks and Dongfeng light trucks, Dongfeng and Futian could not reproduce the huge gap of 100,000 cars in 2009 (2009). Both Dongfeng Commercial Vehicle Co., Ltd. and Dongfeng Motor Co., Ltd.'s two-engined "dual engines" of Dongfeng Motor Co., Ltd. have been caught in low-speed growth. The gap between the two parties in 2011 will be very small;

Secondly, in 2011, Dongfeng pressed hard for Fukuda. Fukuda and Dongfeng were chasing after the “first group army” in the commercial vehicle industry and would be the norm of competition. The Second Group Army of FAW and Jianghuai will continue to maintain a 100,000-level gap with the First Group Army.

In 2011, commercial vehicles compete for the championship. Who is the boss? Compared to previous years, there have been some new changes in 2011.

In addition to the good performance expectations of Dongfeng Commercial Vehicle Co., Ltd., Dongfeng Motor and other Dongfeng Motor Business Units, a very uncertain but possibly decisive factor is the joint venture between Dongfeng and Kema. On October 22, 2010, Shandong Kaima Automobile Manufacturing Co., Ltd. announced that the company intends to jointly invest with Dongfeng Motor's shares and management team to establish a company based in Weifang, Shandong Province, which will produce micro- and micro-cards. The registered capital of the joint venture company is planned to be approximately RMB220 million. Kama Motors will invest in part of the existing land, plant, equipment and debt, and the capital contribution ratio will be 51%. It will be the controlling shareholder of the joint venture company; Dongfeng Motor will invest in currency and contribute capital. The proportion is about 40%. Dongfeng Motor Co., Ltd. does not have a controlling stake in the joint venture company, but sales of the joint venture company will be included in Dongfeng's relevant statements.

This means that if the joint venture goes into production in 2011 and reaches the expected production and sales, the commercial vehicle business of Dongfeng Motor will jump to a new sales level. In fact, this possibility exists because the Dongfeng Kema Joint Venture's land and factory buildings are ready-made, and the marketing channels and service networks are ready-made, and do not need to restart.

At the same time, as the current commercial vehicle boss, Futian's balance has also added some weight. In 2011, Futian Auman's second plant will be put into operation, and the annual production capacity of the two factories will reach 160,000 units, which will really solve the problem of insufficient production capacity that Auman encountered in 2010; Foton Motor also proposed joint ventures with Mercedes-Benz and overseas. Strategy and terminal marketing new models increased production and sales in 2011 to 892,000 vehicles, a year-on-year increase of 27.4%.



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