The West contains huge potential for development and attracts card companies.


Urbanization is the driving force for steady economic growth in the future. According to economists' predictions, this will not change much in the medium to long term. As far as the current situation is concerned, the backwardness of the economy in the central and western regions is largely due to the backwardness of infrastructure construction. Intensifying the infrastructure construction in the west can lay a fundamental foundation for the rapid economic growth in the central and western regions of China.

Recently, this reporter visited Sichuan, the province with the most comprehensive competitiveness in the southwest region, and experienced first-hand the transformation of local urbanization and the construction of transportation infrastructure to allow this once-poor land to flourish. From a glance, in addition to Sichuan, the huge potential for development in western cities such as Inner Mongolia, Xinjiang, and Guangxi has become a “fat” for global commercial vehicle companies.

Development of hot soil

The data in the first half of this year shows that fixed asset investment (excluding rural households) was 157.1 billion yuan, a nominal increase of 20.4% year-on-year, an actual increase of 18% after deducting price factors and a decrease of 5.2 percentage points over the same period of last year. Among them, the most rapid growth is in the central and western regions and agricultural investment, and infrastructure and all levels of government and collective investment in farmland water conservancy construction are the focus.

In the western region, the advantages of low cost and preferential policies have attracted the attention of the country and the world's famous groups and companies. In recent years, the government has given more and more "caring" policies to the west. Yue Youren, president of the Sichuan Automobile Industry Association, said that today world-renowned groups and companies are entering China, and their eyes gradually shift from the eastern developed regions to the western regions.

In the first few months, the Economic and Information Technology Committee of Sichuan Province later confirmed that the main business of 19 enterprises was the approval of the national encouraged industry projects. China National Heavy Duty Truck Chengdu Ace Corporation is among them. It believes that Chengdu Trump is in line with the twelfth paragraph of Article 12 of the “Several Opinions on Deepening the Implementation of the Western Development Strategy” issued by the Central Committee of the Communist Party of China and the State Council, “reduction of 15% for enterprises in encouraged industries in the Western Region. The tax rate is levied on corporate income tax. This means that China's heavy truck Chengdu Trump will enjoy a 15% corporate income tax reduction in 2012.

With the upgrading and transfer of industries, the future infrastructure construction and fixed asset investment growth in the western region will be higher than the national average. This has become the consensus of more and more people, which provides room for the growth of heavy truck products.

Corporate preparation

FAW liberation: speed up the cloth network

In the past, because the headquarters of FAW Liberation was in Changchun, the eastern region had always been the main market for its sales. In the western region, the dealership funds and capabilities of FAW Liberation are relatively weak. Although the J6 market has improved over the past few years, agents have also grown, but in the end, the foundation is too thin. With the advancement of the country’s western development, the demand in the western region has become more and more prosperous. In light of this, the liberation of FAW has created a market that closely follows the market demand for the western market, and at the same time it has made great efforts in supporting systems and maintenance services.

When talking about the layout of FAW Jiefang Market, Zhang Bing, a manager of FAW Jiefang Sales Co., Ltd., said: “FAW Liberation will increase the network construction efforts in western regions such as Sichuan and provide subsidies for upgrading the image of dealership stores in the western region. In addition, FAW’s liberation will be strengthened. Share target management, expand market segmentation model, improve marketing system's ability to research the market, implement effective marketing promotion strategies through 4P+2S tools.”

It is reported that this year, FAW Liberation has 11 new sales outlets and 6 service outlets for the central region. At the same time, the liberation will continue to implement preferential policies for western service and spare parts, and support the western service providers in accelerating their capabilities.

Dongfeng Commercial Vehicle: Cooperative Operation

Dongfeng Commercial Vehicle in Hubei Province occupies a natural geographical advantage. At the same time, Dongfeng Liuzhou Automobile is a local company in Liuzhou, Guangxi. Therefore, Dongfeng Commercial Vehicles in western cities such as Sichuan and Guangxi are geographically more important than other heavy truck companies. The advantage is that its hardware and software facilities in these western cities are more competitive than other truck companies. The achievements in these areas are naturally good.

It is reported that in the first half of this year, among the Sichuan enterprises, Dongfeng Commercial Vehicle Co., Ltd. had the largest sales volume and its market share increased to 54% with the market share being the highest. In response to this, Yang Min, general manager of the Sichuan Business Representative Office of Dongfeng Commercial Vehicles Marketing Headquarters explained: “The ability to achieve such sales results is supported by the support of the company’s high-quality products and the marketing strategies of the product lines, on the other hand. The dealership strength, service station service capabilities, and spare parts supply capacity have accumulated over the years, resulting in strong sales in the Sichuan region."

In addition, Dongfeng Commercial Vehicles and its dealers take a coordinated approach. From the original individual combat operations to the current Corps operations, Dongfeng Commercial Vehicle Co., Ltd. and Sichuan distributors have built a cooperative and mutually beneficial market expansion model for service personnel training, operation management, and customer service, not only helping Dongfeng Commercial Vehicles to obtain The increase in market share also makes dealers get a lot of profit.

China National Heavy Duty Truck: Increase Investment

With regard to the development potential of the western market, Ma Chunji, chairman of CNHTC Group, has long been aware of it and has successively arranged troops in the cities of the western region. In 2011, China National Heavy Duty Truck Co., Ltd. and Chengdu Trump Group Co., Ltd. signed a cooperation agreement. According to the agreement, the two parties jointly contributed capital and Chengdu China Trumpchi Commercial Vehicle Co., Ltd. was established in Chengdu City. On June 30th, Chengdu Trump Commercial Vehicle Co., Ltd. of China National Heavy Duty Truck Group Co., Ltd. established 400,000 heavy, medium, light and micro engines. A full range of commercial vehicle production bases.

In May of this year, CNHTC invested 30 million yuan to establish a wholly-owned subsidiary in Mianyang, Sichuan, China National Heavy Duty Truck Group Mianyang. After setting up a wholly-owned subsidiary, it will help the company make better use of local policies to promote industrial development. The scale effect will be exerted to further enhance the overall competitiveness. This is a strategic move taken by China National Heavy Duty Truck to enter the western region and increase the industrial layout of the country, which is conducive to strengthening the geographical coverage of its products, increasing the market share of products, and can better promote the development of enterprises and achieve their strategic objectives. Lay a solid foundation for future development.

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