From March 1, the "car to the countryside" policy was formally implemented. According to the plan, the state will allocate 5 billion yuan to provide one-time financial subsidies for farmers scrapping three-wheeled vehicles and low-speed trucks for light trucks and micro-buses with a displacement of 1.3L or less. According to expert analysis, “cars going to the countryside†is expected to stimulate the consumption of 1 million light trucks and micro-customers (hereinafter referred to as “the countrysideâ€). Then, what kind of benefits can be brought to the local auto parts enterprises by the huge supporting and after-markets that have been created?
According to experts, there is a big difference between "going to the countryside" and ordinary family cars. First of all, the “going to the countryside†car generally sells for less than 40,000 yuan. Not only does it have a low unit price but also a thin profit, it is destined that it will not make heavy use of high-priced accessories or advanced equipment. For example, most of the "hometown" car original audio only has a radio function and usually does not have a CD player, and it will not be equipped with a GPS. This also makes the “going rural†auto accessory market become a solid “hold†for local parts and components companies. In fact, over the years, the matching market for middle and low-end models has also been the main battlefield for local parts and components companies.
Recently, when the reporter visited Changzhou Huazhong Brake Co., Ltd., it was discovered that this private enterprise producing hydraulic drum brakes did not suffer from the light business due to the financial crisis. Wang Min, general manager of Changzhou Huazhong, said that his products are supplied by a number of micro- and light-car companies in China. Orders have continued after the Spring Festival, and the benefits of the “car to the countryside†policy have been truly felt. Shandong Lingong Automobile Bridge Box Co., Ltd. produces and sells more than 350,000 miniature, light and medium-sized transmissions each year. Recently, customers have also seen a significant increase in the demand for light and micro-transmissions, even in short supply. According to Zhao Dafu, director of the technical center of FAW Harbin Transmission Engineering Factory, the plant's sales volume for this new type of transmission is expected to increase by more than 50%. It can be seen that the local parts and components companies are becoming the most direct and biggest beneficiaries of the 10,000 new “township†cars.
Wang Min said that the rural market has a large demand for automobiles. At the end of last year, a large number of migrant workers returned to their hometowns. Some migrant workers employed local businesses and started businesses to purchase light trucks and micro-customers to carry cargo and passenger transportation businesses, which are very suitable for these farmers who have swept their lives in big cities. work. With the promotion of the "car to the countryside" policy, there has been a sudden increase in "downtown" vehicles. At this point, it is necessary for supporting companies to have rapid-reaction development and supply capabilities. Otherwise, they can only miss business opportunities. At the same time, the roads and conditions of use of the “running to the countryside†are poor, and overloading is also common. Therefore, when designing products, not only should they be adapted to the environment of rural vehicles, but they must also leave sufficient design margins. Taking brakes concerning the safety of driving as an example, in addition to overloading, rural road traffic management is relatively confusing. Pedestrians crossing the road, cycling in opposite directions, and barricade changing vehicles are more common and the probability of emergency braking is significantly higher than that of the city. Therefore, when designing brakes for “going to the countryside†cars, their design levels must be improved. Otherwise, even if it is a car that meets the national standards, once it “goes to the countryside,†it may also “run rampant†in the villages and villages.
Since the second half of last year, the global financial crisis began to spread to China's real economy, which has led to the reduction of export orders for parts and components and the slowdown in the domestic auto market. In order to avoid emptying production capacity, local parts and components companies are racing to tap new market growth points, which also includes a large amount of light trucks and micro-customer matching markets. The local parts and components companies that originally targeted the mid- to high-end market were eager to refer to the “going to the countryside†car, which will inevitably intensify the competition in the low-end auto parts market. It can be believed that “chicken killing chicken†will help improve the supporting level of “running to the countryside†and gradually change the status quo of low-priced and low-quality rural vehicles. From this point of view, "cars go to the countryside" should be a good thing with multiple actions.
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