Where is the market for China Card in 2007?

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With the continuous expansion of the heavy truck and light truck markets in recent years, the market share of China Card has been decreasing year by year. According to the data, the market share of China Card in 2004 was 13.38%, which dropped to 12.80% in 2005 and fell to 11.53% again in 2006.

In response to this phenomenon, industry experts pointed out that with the development of China's national economy and with the development trend of international modern logistics, trucks have become an indisputable fact in the development of both heavy-duty and light-weight. Against such a backdrop, the shrinking market share of China Card is also a general trend.

However, from the market performance in 2006, China Card did not decline. Influenced by the macroeconomic environment and favorable policies, from the second half of 2006, the medium- and heavy-duty truck market was just like the stock market at that time, "catch up with a wave of prices": not only has it completely shaken off the shadow of 2005 adjustments, but has also been advancing rapidly. The bull market continues today. Among them, the China Card Market began to rebound significantly in July of last year, and achieved an impressive 51.50% year-on-year increase in sales in October. This is impressive. In the end, the sales of the China Card Market in the first half of last year achieved sales growth of 3.86% year-on-year.

In 2007, will China Card continue to maintain such a market trend, or will it continue to shrink as it follows the trend of polarization? In response, some people in the industry have expressed their views to reporters.

Still seductive cake

For the prospect of the China Card Market, Wang Baoqing, deputy general manager of Jianghuai Automobile Truck Marketing Corporation, expressed optimism. He analyzed with reporters that the shrinkage of the Chinese card market was due in large part to the fact that the major models in the traditional Chinese card market were all upgraded from light trucks, but they were adjusted based on the needs of users in light of the existing light trucks. Strictly speaking, it is not really a middle card. With the rapid development of China's economy and the continuous improvement of road quality, the traditional card cannot meet the needs of the market. What the market needs is a high-quality medium card that can truly meet the needs of users.

In addition, although the trend of the polarization of trucks is in line with the development laws of the developed foreign automobile markets, due to China's huge market and market demand also varies from place to place, China Card still has great market potential. Wang Baoqing further analyzed that a relatively fixed market in China Card is mainly concentrated in economically underdeveloped areas such as townships and rural areas, because the price of heavy trucks and the cost of using them are very high. In contrast, Zhongka has a lot of economic and traffic conditions in many townships. It is not suitable for heavy-duty heavy-duty trucks, so users in these areas often use medium-sized cards instead of heavy trucks.

"China Card Market is still a seductive cake."

This is Wang Baoqing's evaluation of the China Card Market. In the interview, the reporter learned that, in addition to JAC has launched new products in the card, many heavy truck companies also showed the intention to extend the product line to develop the market in the card. A person revealed to reporters that although the market share of China Card has declined, it is partly due to adjustments made by Dongfeng and FAW in the product structure, because the sum of the sales volume of the two cards in the company accounted for Zhongka. Nearly 60% of the market, in fact there is no shortage of markets, many companies are eager to try.

Unique advantages

Compared with light trucks and heavy trucks, China Card has its own advantages and therefore has a stable market. Liu Junli, a truck network analyst, told reporters that the biggest advantage of China Card is its short-to-medium distance transportation. He analyzed that although the large-tonnage light trucks are selling very hot at present, for users with relatively higher capacity requirements, the medium-sized cards with light weight and strong bearing capacity are still their first choice. Statistics show that, in 2006, the cumulative sales volume of 6 tons of total vehicle ≤8 tons models reached 55,522 vehicles, accounting for 40.48% of the market share of the card, an increase of 26.09% year-on-year. It can be seen that Zhongka products with medium tonnage, light weight, relatively high horsepower, and large tires dominated the China Card market last year.

Another characteristic that the card is valued by the user is that it is affordable but has a strong overloading capability and is often used as an alternative to a heavy truck. Although super-advancement efforts have been made and freeway tolls have been imposed on highways, there is still a lack of restrictions on roads outside the expressway. In particular, medium- and short-distance transport between mining areas or engineering construction sites often uses medium-duty trucks with strong overload capacity.
In addition, China Card is very suitable for the transformation of construction machinery vehicles and special vehicles for municipal construction. Liu Junli said that this market has great potential and high profits. Taking the road sweeper as an example, he said that due to the continuous development of urban construction, the city’s demand for road sweepers is increasing day by day, and its functional requirements are getting higher and higher. At present, many municipal special vehicle technologies rely on imports.

From the standpoint of market development advantages, Liu Junli said that the China Card Market has always been the first place for manufacturers who want to enter the heavy truck sector, and will not easily give up the market. At present, the impact of the mandatory automobile standards imposed by the state on the China Card market is far less than that of heavy trucks and light trucks. Even in the short term, it will have a certain role in promoting the demand of the card market. This has also directly led to the weakening of the monopoly effect of the domestic card market in recent years and its stronger competitiveness.

The outlook is not optimistic

Regarding the prospects for the development of the China Card Market in 2007, a relevant person of Shaanxi Automobile said that at least in the long run, it should be cautious. According to the source, the major heavy truck companies currently focus their efforts on the development of overweight tonnages with higher tonnage and more horsepower. How much energy and mind to eat the "leftovers" in the bowl will not be known. From the perspective of last year’s market, the polarization of the truck market accelerated. Although China Card’s growth rate was 3 percentage points year-on-year, its market share remained the smallest among the truck market segments. The lack of market potential has enabled China Card to increase even this year, It will not be great.

In addition, the source said that with the increase in the intensity of governance and the scope of coverage, as well as the improvement of road construction in villages and towns, the use of medium-input cards instead of heavy trucks will eventually be eliminated. At the same time, due to the increase in various cost expenditures such as oil prices and shipping costs, the status of China Card in the township and rural transportation markets and the city's short-distance transport market will be to a certain extent be large-tonnable agricultural vehicles or low-grade, large-tonnage or high-level configurations. Light trucks are replaced.

Judging from the information currently available to reporters, in January of this year, due to the impact of the construction of large-scale projects in various regions, the medium- and heavy-duty truck market continued its good sales at the end of last year, which was much earlier than the sales peak that appeared before the Spring Festival. From this point of view, this year's favorable macroeconomic environment will play a catalytic role in the development of the China Card Market. However, in the long run, with the acceleration of the national economy and the acceleration of the internationalization of the truck market, China Card has been shrinking. How long the market can hold the current "platter" can no longer be worrying.

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