Impact of Industrial Westward Migration on Domestic Heavy Truck Market

Premier Li Keqiang of the State Council presided over the executive meeting of the State Council on June 25 to determine policy measures to promote industrial transfer and adjustment of key industries. Li Keqiang said that under the premise of ensuring that the environment is not polluted, it is necessary to actively and orderly guide the transfer of industries in the eastern coastal areas of the mainland and guide 100 million people to urbanization in the central and western regions. The impact of this policy on the layout of China's macro economy is undoubtedly far-reaching. What impact will this have on China's heavy-duty truck market? This article will briefly analyze this.

The main contents of the policy <br> <br> Premier Li Keqiang June 25 chaired a State Council executive meeting, the deployment of good grain purchasing and storage and warehousing facilities construction work, decided to improve agricultural prices and market regulation mechanisms to determine focus and promote the transfer of industries Industrial layout adjustment policy measures.

The meeting pointed out that in accordance with the law of economic development, it will guide the transfer of some eastern industries to the central and western regions in order to promote regional gradients, linkages, and coordinated development, drive new urbanization in central and western regions and enrichment in poor areas, expand employment and develop new space, and promote economic development. The jump in the high-end level is of great significance. It is necessary to highlight the decisive role of the market in the allocation of resources and do a good job of guiding the government so that structural adjustment and steady growth will benefit people's livelihood. First, we must create a good "hard environment" and "soft environment" for undertaking industrial transfer. We will increase investment in weak links, accelerate the improvement of infrastructure such as transportation, information, and energy in the central and western regions, strengthen fiscal, taxation, and financial services, and do a good job in talent development and industrial support. Second, we must play a leading role in the market, focus on policy guidance, and promote the upgrading of industrial innovation and the development of producer services in the eastern region, and promote the transfer of labor-intensive industries and processing and assembly capacity to the central and western regions. Combine the construction of the “One Belt and One Road” and the Yangtze River Economic Belt to develop characteristic and advantageous industries. Third, we must give full play to resource endowments and location advantages to strengthen the orientation of resource-based industries. We will promote the construction of bases for western coal, modern coal chemical industry, southwest hydropower, northern wind power, and coastal shipbuilding in an orderly manner. In the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Pearl River Delta, new projects such as coal-fired power generation and high energy consumption and high pollution projects are prohibited except for cogeneration. Fourth, we must deepen industrial international cooperation. In the western region, we shall open up an industrial platform to the west and support advantageous enterprises to open up markets overseas. Fifth, we must implement differentiated regional industrial policies, effectively protect the environment, and save water for intensive land use. Through the industrial transfer and layout optimization, China's economic upgrading will be promoted and the stability will be furthered. When discussing policies and measures to promote industrial transfer and the adjustment of key industries, Li Keqiang pointed out that for China, securing full employment in the central and western regions is crucial. Over the past 30 years, migrant workers who have flowed from the western region to the eastern region have made tremendous contributions to the Chinese economy. The problem now is that with the economic development, the cost of labor in the eastern coastal areas is increasing and the industrial competitiveness has begun to weaken. How to do? Some industries in the eastern coastal areas must be transferred out, and the direction of the shift is the central and western regions. Li Keqiang emphasized that in order to promote the transfer of industries in the eastern coastal areas to the central and western regions, it is necessary to provide the necessary power support for the central and western regions. First of all, we must do a good job in transportation, information, and talent-based infrastructure, and use good "hard environment" and "soft environment" to undertake the transfer of eastern industries. In addition, industrial transfer cannot be promoted by the government alone, and it cannot be forced by companies. We must follow the laws of the market and use low-cost and facilitated business environments to attract enterprises to transfer themselves. To ensure that the environment is not polluted, we must actively and orderly guide the transfer of industries in the eastern coastal areas and guide 100 million people to urbanization in the central and western regions.

Development impact of policies on macroeconomic <br> <br> industry has been sought by price, follow the law of the transfer from developed areas to less developed areas. At the end of the 1990s, some industries in the eastern coastal areas had gradually shifted to the central and western regions such as Hunan, Hubei, and Chongqing. With the increase in the cost of labor and land, the pace of industrial transfer from the eastern region to the central and western regions is also accelerating. In January 2010, the State Council formally approved the "Regional Planning for the Industrial Transfer of the Minjiang City Belt", which was the first state-level industrial transfer demonstration area approved to be established, marking the official transition of industrial gradients to a national strategy. In September of that year, the "Guiding Opinions of the State Council on the Transfer of Industries in the Central and Western Regions" was formally introduced. It is clearly proposed that in order to further improve the investment environment in the central and western regions, guide and support the orderly transfer of industries and scientific acceptance, and provide necessary policy support in fiscal, taxation, finance, investment, and land. With the encouragement of the policy, the central and western regions have successively established 6 national-level industrial transfer demonstration zones such as Guangxi Guidong, Chongqing Yanjiang, Hunan Xiangnan, Jingzhou Hubei, and the Yellow River Golden Triangle (cross Shanxi, Shaanxi, Henan 3 provinces). As long as the industry can move smoothly and the destination of the transfer has the advantage of resources, the industrial transfer will inevitably become the driving force for the local economic development.

At present, some of the heavy truck companies in the western region marketing situation Dongfeng April 22, Liuzhou M7 tractor new product launch conference was held in Yulin Yuchai Machinery & Electric Liuzhou Automobile 4S shop, and the customer set 7 cars on site. M7 is a premium model of Dongfeng Liuzhou Automobile, which is popular among users. The new generation of YC6MK400-42 assembled with Yuchai's 10-liter yellow gold engine and Dongfeng Liuqi M7 will be on the market. Once again, this will increase the space for users to choose. Yuchai's high reliability and low fuel consumption will also provide better performance. user experience. According to Dongfeng Group's strategy, the Balong M7C, which is a high-speed, light-weight logistics vehicle targeted for standard transportation, was only equipped with Dongkang 9.5-liter engine. Due to its good performance in light weight, power, comfort and safety, it grabbed orders from a number of domestic fast logistics companies. In order to further ground gas, after researching, Dongfeng Liuzhou Automobile uploaded the news at the 2014 annual business meeting. Based on Yuchai's superior engine power and accessories, the M7 model will match the Yuchai 6MK400 engine. Dongfeng Liuzhou Automobile Co., Ltd. takes up more than 60% of the Guangxi truck market. The M7 model matches the Yuchai 6MK400 engine. It not only has the advantage of power selection, but also receives emotional recognition from customers in Guangxi and even in the southwest.

FAW <br> <br> west, FAW is trying to break through the gaps in the market. Since the beginning of the “Twelfth Five-Year Plan” period, FAW’s liberation began to implement strategic breakthrough strategies in the western region and used special policies to enhance the sales capabilities of agents’ network members. Since the release of J6 in Guizhou, the recognition in the user's mind has been increasing year by year. In 2013, it exceeded 1,400 units. From January to April 2014, J6 sales reached 740 units in Guizhou. On May 18th, 2014, Guizhou Guiyang City held a 2014 liberation dump truck delivery and delivery ceremony in Guiyang City, Guizhou Province. The event was conducted on the 2014 “Two Small, Two High and One Low” improvements. Explaining in detail, the customer realized that the 2014 dumping not only ensured the stability of the chassis and the comfort and safety of the vehicle, but also improved the passability and low-speed dynamics of the vehicle. Liberation not only provides customers with quality products, but also provides our customers with "24-hour moving service." At present, FAW Liberation has set up 13 liberation service providers in Guizhou to implement a 24-hour service commitment. In 2014, Guizhou reserves 10 million yuan in spare parts at the Guiyang spare parts center, and another two spare parts centers in Chengdu and Chongqing in the north of Guizhou, the Nanning spare parts center in Guangxi in the south, the Kunming spare parts center in the west, and the Changsha spare parts center in the east. These favorable conditions can be fully implemented. Ensure the normal operation of the user's vehicle and relieve everyone's worries. Together with the distribution service network, FAW Liberation will continue to practice its service commitments, enhance its own management skills and service skills, and provide its customers with the highest quality service in the commercial vehicle industry.

China National Heavy Duty Truck On March 23rd, Emeishan Yuchi Automobile Sales Co., Ltd. and China National Heavy Duty Truck Emeishan Sales and Service Center in Sichuan's Emeishan Storage and Logistics Park opened its doors in a warm atmosphere and formally joined China National Heavy Duty Trucks' commercial vehicle company. Commercial vehicle company is the largest 4S shop in Southwest China. The delivery ceremony of 30 LNG Hauka tractors was held at the same time. Liu Zhengtao, General Manager of Sinotruk Commercial Vehicle Company, introduced the development strategy, product structure and product highlights of Sinotruk Commercial Vehicle Company, and expressed that it will fully support the development of Domain Automotive Sales Co., Ltd. and vigorously develop the market of Emeishan and its surrounding areas to LNG. Cars are the breakthrough point, putting more, better, cleaner and more environmentally friendly cars into the market and realizing the rapid development of the company. Huang Chien-keung, chairman of Yuchi Automotive Sales Co., Ltd., said in his thank-you speech that Shaoshan City is the most important cement production base in Sichuan Province, and the cement transportation volume has been increasing year by year, making the demand for heavy vehicles continue to expand. With the continuous increase in the power of overloading in Sichuan Province, market demand has further increased. China National Heavy Duty Truck Emeishan Yuchi Sales and Service Co., Ltd. is a wholly-owned subsidiary of Emeishan Zhongcheng Logistics Holdings Co., Ltd. The holding company owns more than 100 transportation vehicles. In recent years, it continuously purchases LNG vehicles from China National Heavy Duty Truck Group. To a very good demonstration effect, the influence of China National Heavy Duty Truck brand is also expanding. Domain Chi company will adhere to the service as the breakthrough point and realize the win-win situation with the users. It will vigorously promote the sales of Haoka LNG tractors and is confident that it will achieve 300 vehicle sales during the year, making Sinotruk the most influential local company. s brand.

On March 17th, Shaanxi Auto Group ’s 2014 “Shaanxi Steam Heavy Truck Xinjiang Strategy” and “Silk Road New Green Economic Belt” were held in Urumqi with the theme of “igniting the passion to take the initiative to transform and renew the splendor”. In recent years, the construction and development of the western region, especially Xinjiang, is an important strategic force for realizing China’s steady economic growth, and is also an important direction for the current government’s governing policy. In the "two sessions" just concluded, Premier Li Keqiang's government work report clearly stated that priority should be given to promoting the development of the western region, increasing support for new urbanization in the western region, establishing a northwestern economic support belt, and accelerating the infrastructure of the western region's railways. Build and promote the upgrading of border trade, and plan to build the Silk Road Economic Belt. Xi'an, as the starting point of the Silk Road, contains tremendous potential for development; Xinjiang, as the most important turning point in the interior and exterior of the Silk Road, is an important area for the national West Development Strategy and the Silk Road Economic Belt planning, bearing the realization of the regional strategy. The hope is also the core area of ​​Shaanqi's strategic plan. In the past two years, the market share of Shaanxi Heavy Truck heavy trucks in Xinjiang has been rising year by year. It reached 50.6% in January-February this year, an increase of 5.3 percentage points year-on-year, ahead of the competition, and the regional product mix was further optimized. The proportion of tractors in January-February was 31. %, an increase of 11 percentage points over the same period of last year. Not only that, but it still maintains a market leader in terms of natural gas models. The advantage of Shaanxi Auto Heavy Duty Trucks in Xinjiang cannot be shaken. At the meeting, Yuan Hongming, general manager of Shaanxi Auto Holding, explained and introduced the relevant support policies of the group company. Xinjiang is located in the western part of China and has a vast area. It has its own market demand characteristics and customs. The establishment of Shaanxi Auto's Xinjiang plant is a strategic decision made by Shaanxi Automobile Group to support Xinjiang's regional development. Western China is important for Chinese commercial vehicle companies, not only because of its own market potential, but also because of its regional advantages, which is very helpful for the development of Central Asian and Western Asian markets. Shaanxi Auto's localized production for the unique characteristics of the Xinjiang region means that it can shorten the delivery time, meet the needs of end customers more quickly, provide more convenient conditions for dealers to reserve resources, and save the delivery cost for customers. Create more value. Shaanxi Auto will pour the power of the entire group to support the development of the Xinjiang region and support Shaanxi Auto's Xinjiang plant development.

SAIC Iveco Hongyan <br> <br> following the 2013 production of SAIC Iveco Hongyan Hongyan Jie lion tractor quantities to enter Xinjiang Shihezi, Yili, Urumqi and other areas, Jie lion excellent quality, reliable performance has been consistent users approval. On January 23, 2014, another group of Jieshi LNG tractors was delivered to Xinjiang users. The vehicle purchased by the user includes both LNG tractors and diesel tractors. SAIC Iveco Hongyan’s marketing staff and distributor representatives gave a detailed introduction to the delivered Jieshi LNG natural gas vehicle at the ceremony and guided guests to a test drive. According to the user representative, the Jay Lion car has a good appearance, comfortable ride, strong power, and explosive power, especially LNG natural gas heavy trucks. It is technologically advanced, mature and reliable, and economical and environmentally friendly. It plans to buy a batch after the holiday as needed.

Baotou, Beibei On June 18th, Beibei New Experience and Hand in Hand create the future. In 2014, Xinjiang Dijie Beiben V3M New Product Recommendation Meeting was held in Urumqi. Wang Shihong, general manager of Beiben Heavy-duty Truck Group Co., Ltd., deputy general manager Wang Baoying and Xinjiang Di Mr. Lei Jianguo, chairman of Lingjie Auto Sales Service (Group) Co., Ltd., gathered nearly 200 dealers and users from Xinjiang. Xinjiang has become a truck market for all truck companies due to its abundant resources and traffic fortresses. Northern Xinjiang focuses on resource extraction, urban construction, and logistics and transport, and southern Xinjiang focuses on resource transportation and living material distribution. There are heavy-duty dump trucks suitable for resource extraction and urban construction, as well as tractors suitable for logistics transportation and resource transportation. The city of Xinjiang with Urumqi as the core has already implemented State IV. However, due to the fact that the entire region of Xinjiang is wide and the implementation of the State Fourth is still difficult, it presents the characteristics of the transition period between the country, the country, and the country. Wang Baoying, deputy general manager of Beiben Heavy-duty Truck Group Co., Ltd., gave a detailed introduction of the company's products to the users who participated in the recommendation meeting. He mentioned that besides bringing the entire national product of the four countries into Xinjiang, Beiben brought service and finance into Xinjiang. In Guosi's products, dump trucks accounted for most of the Xinjiang truck market due to the large number of resource mining projects in Xinjiang. Take the mining dump truck as an example, Beiben's mining dump trucks have made several improvements and enhancements to the beams. Strengthen, the rear axle adopts the main reduction, large wheel sides, so that the transmission torque is greater, more suitable for deep pits and other ways, so that users can have a new experience for Bei Ben. In service, Beiben increased its efforts in the supply of spare parts to ensure the best after-sales service for users, but also provided support for the sales service companies such as Di Lingjie in setting up the service network. The sales, service, and spare parts were unified one by one, a rapid response mechanism for sales services was established, and spare parts were precisely put in place to ensure that the first-time service was in place and that the truck users in Xinjiang, who were sparsely populated, could serve more timely and efficiently. In financial terms, Di Lingjie of Xinjiang also conducted in-depth cooperation with the mainstream banks in Xinjiang, allowing truck drivers to pick up trucks and pick up trucks through guarantees and financing. At the recommendation meeting, Chairman of the Board of Directors of Xinjiang Diling Jereh Jianguo also stated that it would fully support the financial needs of users to purchase cars and solve the worries of truck drivers.

Sichuan Modern June 10, the park held a set vehicle hit Sichuan modern tiger heavy truck market conference in Xindu District, at the same time, western Sichuan region's first modern flagship store - Chengdu Wang Jie vehicles Co., Ltd. 4S shop and The service guarantee base is also shown at the same time. As the economic center of the entire southwest, Chengdu is also the “base camp” of Sichuan Modern. With the advantages of Sichuan’s modern products and the local market formed by Chengdu Jiehong 4S Store for many years, it is believed that Sichuan Modern Association has a high-end heavy truck market in the western region. Excellent performance. In this IPO, Sichuan Hyundai Motor Co., Ltd. first introduced a 410-horsepower 6X4 tractor in Chengdu based on the growing highways and inter-provincial inter-provincial logistics in the southwest region. It is understood that in the near future, there will be tractors equipped with 440-horsepower engines and hydraulic retarders required by mountain users. At the conference's site, Sichuan Hyundai also demonstrated the Chuanghu 360-horsepower 6X4 dump truck. At present, Sichuan's modern sales network construction will enter an acceleration phase. Before August of this year, it will hold a publicity conference in more than 20 regions across the country and establish corresponding after-sales service points in various places.

Industry to Move to the heavy truck market impact
<br> <br> to undertake the eastern industrial transfer, central and western regions need to invest a lot of money for infrastructure. With the advancement of national industries in the west, domestic heavy truck companies will have a vast market in areas such as western infrastructure construction. In particular, heavy trucks such as construction vehicles, dump trucks, and tractors will play an important role in the development of the western region. There is no doubt that there are major business opportunities for heavy truck companies.

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