XCMG Heavy Truck Market Positioning Locks Engineering Machine Users to Realize 78% Increase in 2011

When Xugong Group was mentioned, many people first thought about the influence of engineering machinery. How could XCMG's strength in the field of construction machinery help XCMG to dance in the long-sleeved area of ​​trucks? Converting the existing influence into truck sales, what efforts has Xugong made? In the context of the heavy truck market falling back in 2011, what is the status of the XCMG Group as a newcomer?

Accurate product positioning

At the beginning of the heavy truck field, Xugong Automobile faced multiple difficulties. At that time, the State III standard had just been implemented. Xugong had almost no State III announcement; the truck market environment was complex and the model diversified. The enterprises such as FAW Jiefang, China National Heavy Duty Truck, Dongfeng Commercial Vehicle, Futian Auman, and Shaanxi Auto all occupied most of the market share. Under such a market environment, XCMG has locked in users of construction machinery to avoid the direct competition with several major heavy truck manufacturers and can leverage the brand influence of XCMG in the field of construction machinery. After identifying the main target users, XCMG selected models closely related to construction machinery, reorganized production, and determined a strategic plan for the development of special vehicles and dump trucks with animal vehicles.

In 2011, the establishment of the Nanjing Research Institute of XCMG marked the full launch of the XCMG strategy for large vehicles with the development of heavy trucks as its core. In order to meet users' demand for high-quality products, the institute has worked together to develop XCMG high-end wide-body mining trucks. The vehicle body is 3 meters wide, equipped with Weichai high-powered engine, Allison AT gearbox, and Meritor's Axle. After the new car went offline, Xugong did not rush to bring it to the market. Instead, it placed it on an open pit coal mine in Ordos for field trials. The vehicle is operating 24 hours a day under harsh conditions. After more than a month of training, there was no problem with the vehicle, and the advantages of strong power, easy operation and other advantages were highlighted one by one. Different from the positioning of wide-body mining trucks, XCMG's dump trucks and logistics vehicles take the middle-end route. Dump trucks have a prominent advantage in light weight and are mainly aimed at users who do not overload and transport light cargoes.

Supporting choices have claims

Because the users of construction machinery use vehicles under the harsh working conditions of many dusty roads and large slopes, XCMG has chosen another ancillary product and chose the Shangchai engine with a very good reputation in the field of construction machinery. According to Gao Yong, the marketing manager of Xugong Automobile Marketing Co., the main advantage of Shangchai’s engine is fuel efficiency. Xugong, a 290-horsepower engine that assembles diesel, transports vegetables from Lanzhou to Urumqi. It can save 800-1,000 yuan in one round trip. Secondly, the diesel engine is at 270. -The power in the range of -310 horsepower is very strong, and it is in line with the user's power requirements. In addition, the diesel engine of Shangchai has been verified by the market and its quality is reliable. In regions with ample sources of gas, many construction machinery users prefer gas engines that are economical and do not require emission upgrades. Based on the above advantages, the XCMG construction vehicle supporting the Shangchai engine hit a blast in the northwest and southwestern regions, and orders came in succession. As XCMG's engineering machinery products are equipped with diesel engines, thanks to the Group's supply chain advantages, XCMG has received a sufficient supply from Shanghai Diesel Engine under the tight supply of the entire engine market. The supporting chain of the force helped Xugong Motor to double its growth for two consecutive years in 2010 and 2011.

Multiple channels in parallel

Although XCMG is mainly faced with construction machinery users, the marketing channels cannot rely entirely on the parent company. Interline is like every other mountain, the distributor of construction machinery products sells the logistics vehicle, even the procedure of connecting the card is not clear. Therefore, XCMG adopts the block marketing model and multiple marketing channels in parallel. In the domestic market, construction trucks and special vehicles mainly rely on the XCMG sales network and sell concrete mixer trucks at concrete mixing stations. The logistics vehicle sales mainly rely on the new sales network of XCMG, and the development of special dealers based on prefecture-level cities. First-level, second-tier distributors, etc.; find typical users as regional agents, relying on the influence of typical users and interpersonal networks to achieve regional coverage. In the field of heavy trucks, the word-of-mouth marketing model is very useful. Many users don't really understand the car. What brand cars are chosen are more about listening to relatives and friends. XCMG's tractors are usually sold in a village and quickly cover large areas with good results. In overseas markets, XCMG still relies on its parent company's sales network. In 2011, Xugong Group exported Venezuela’s products worth 4.8 billion yuan, including more than 700 Xugong dump trucks.

Under the environment where the entire heavy truck market continues to decline, Xugong Motor's growth rate is 78%, which is much higher than the industry average. A steady stream of orders has caused XCMG to experience a bottleneck in production while it is delighted. The original single production line and outdated production equipment have no way to satisfy the growing XCMG car. In order to break through the bottleneck of production capacity and optimize products, XCMG has acquired more than 3,000 mu of land in Xuzhou to prepare a factory for producing high-end trucks, and has requisitioned nearly 1,000 mu of land in Banqiao District of Nanjing to further expand production. Following the development rhythm of construction machinery, Xugong Automobile is gradually rising in the field of heavy trucks with steady and solid steps.

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