SAIC-IVECO HONGYAN: Half Year Sales Up by 62%

www.chinatrucks.com: In face of a 62% growth rate which is jealous for many peers, Sales Manager of SAIC-IVECO HONGYAN Cao Zongqiang doesn't show too much bliss because as what he said this is under expectation. On August 26, when accepting an interview, Cao Zongqiang who is confident and firm says: "SAIC-IVECO HONGYAN's growth rate is No.1, which proves that our transformation starts to work out. We're going to challenge over 60% growth rate next year. After all, sales volume is a good proof for transformation."

Sales Manager of SAIC-IVECO HONGYAN Cao Zongqiang

Cao Zongqiang believes the actual effect and results defend for methods. The past year proves his opinion. From January to July, SAIC-IVECO HONGYAN sells 16,300 units in total, up by 62.2% year on year, while the whole heavy truck industry only grows by 8%. He still regards the result as the incomplete of transformation, otherwise "the growth rate should be 100%".

SAIC-IVECO HONGYAN's confidence

Even so, the high growth in 2013 is not easy to get. Cao Zongqiang, like General Manager Xiong Weiming, comes from Shanghai Diesel Engine to in charge of sales in SAIC-IVECO HONGYAN. Since the end of 2009 when Xiong Weiming came into power, SAIC-IVECO HONGYAN have got stable development in two years despite many people believe he didn't come at a right time.

In 2010, the sales department sold 33,000 units of complete vehicles, up by 69% year on year; in 2011, despite of 30% decrease in the whole industry, SAIC-IVECO HONGYAN maintained 31,500 units with a market share of 3.6%; in 2012, when Xiong Weiming planed to target at 35,000 units, he failed and the decrease rate was up to 60% due to the overall decline of heavy truck (including dumpers, tractors and vans) industry (decreasing by near 30%). However, the decrease rate is much higher than other heavy truck manufacturers. Why?

 

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By comparison, Sinotruk and Shacman receive rising market share thanks to large quantity of export. Auman also has a smaller decrease rate than the industrial average due to much balanced product mix. With either a balanced product mix or a big export quantity, can an enterprise be able to survive. But SAIC-IVECO HONGYAN doesn't have any of them. The whole trucks market is roughly 1/3 road vehicles, 1/3 engineer vehicle and 1/3 special vehicles. SAIC-IVECO HONGYAN's product structure is too simple with 80%-90% are dumpers. As Xiong Weiming says, they only strive for 1/3 market with 99% effort.

In face of such a situation, Cao Zongqiang assists Xiong Weiming establishes a sales system commencing on April 2014.

Cao Zongqiang starts from the reform in marketing by divide the sales department into road vehicle department, engineering vehicle department, special vehicle department and large enterprise department. The division is a solid foundation for HONGYAN's professional marketing. 

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