What is the reason behind the contrarian growth of Sinotruk's sales volume?

 The heavy-duty truck market this year is very interesting. The start was a decisive battle, and the output was crazy in the first half of the year. Sales in the first four months continued to refresh. However, there has been a negative growth since May. Only Sinotruk has a positive growth, and the growth rate of Sinotruk has been relatively high for several months. What is the reason behind this?

▎"Revolution" changes new tricks, various new products to meet customer needs

Before talking about sales, let's talk about the corporate changes of Sinotruk in the past two years. Since Tan Xuguang took office, Sinotruk has undergone tremendous changes every month and even every day. Tan Xuguang also said frankly that it is necessary to completely change some of the previous shortcomings of Sinotruk and bring a "change" to Sinotruk. This change has brought real changes to Sinotruk.

Sinotruk has always pursued "Customer satisfaction is our purpose." Sinotruk will give what customers want. This is also the keynote set by Tan Xuguang for Sinotruk（howo truck parts）. Previously, Sinotruk’s product configuration was relatively solidified, mainly based on Sinotruk’s independent power, and product updates were relatively slow. Although it has a strong technical reserve, it has not landed too much.

Since meeting customer needs as the first element, Sinotruk has launched a variety of products in a very short time, including various configurations such as the assembly of Weichai engines and Kangmai oil-lubricated wheel ends. The new configuration meets the needs of the majority of users at once. No matter what configuration it is, as long as it is available in the market, Sinotruk can meet the requirements to a great extent.

The introduction of new products directly added to the strength of the heavy truck. Various versions of heavy trucks have set off a heavy truck trend in the market. Flexible configuration can be said to be one of the most important factors for the increase in sales of heavy trucks. In addition, the reward and punishment mechanism of Sinotruk has also played a certain role in promoting employees, which is reflected in the super-high growth rate in sales.

▎Super high cost performance, small profits but quick turnover to ensure sales

Of course, the rich configuration also has a suitable price. Starting in 2020, Sinotruk has been adhering to the principle of increasing the volume without increasing the price, and has been continuously providing users with high-quality and low-cost products. According to industry insiders, Sinotruk’s strategy is to make small profits but sell more quickly, and directly give profits to customers after reducing costs, with the goal of increasing sales.

According to other domestic truck dealers, the price of Sinotruk  wg9921161100 is indeed not low. The price of a 460-horsepower 6X4 tractor can reach about 250,000 yuan. This price can be said to have no profit. If the car is packaged, it may be still Will lose money.

According to a dealer in Chengdu, the price has been relatively low since the beginning of the year in order to increase sales. However, it is only the heavy truck family that cut prices, and other brands are constantly refreshing the bottom line of prices, and everyone once fell into a price war. In addition, the abundant configuration and shortened delivery cycle of Sinotruk also attracted customers, and various factors finally contributed to the excellent results of Sinotruk.

▎Country VI is coming, and stocking goods in Country V also boosted sales

In addition to the super cost-effective and rich configuration, there is a relatively big factor in the contrarian growth in May that is the switch of the five countries and six countries. It is getting closer and closer to the implementation of National VI. In mid-to-late May, dealers across the country began to deal with National V vehicles, including but not limited to price reduction promotions, early invoicing and licensing, etc.

It is precisely because of this that part of the sales volume in May was actually digested by the dealers. According to industry insiders, it is conservatively estimated that the current national dealers' inventory of National V products has exceeded 300,000 units. The purpose is to digest the existing National V products and issue invoices for National V products in advance, which must also be included in sales.

Since the beginning of the year, the sales volume of Sinotruk has been continuously hitting new highs. On the one hand, the top-down reform of Sinotruk has played a role, promoted product iteration and enriched the product line. On the other hand, the strategy of increasing the volume without increasing the price and small profits but quick turnover has helped Sinotruk achieve excellent results. In the second half of the second half of the National VI, Sinotruk may continue to lead and continue to expand its market share