In the first quarter of this year, China's auto industry gained a lot of momentum, among which the increase in commercial vehicles surpassed that of passenger vehicles for the first time since 2006. The trend that led this wave of commercial vehicle growth is Foton Motors, which is known as China's first brand of commercial vehicles.
Based on its sales volume of 340,000 units in 2006, Foton Motor has begun to push its market with high technology, excellent product quality and perfect after-sales service to hit new market heights. In the first quarter of this year, Foton Motor sold 95,994 vehicles in total, and its sales increased by 5.5% year-on-year. Profits reached more than 100 million yuan, a year-on-year increase of 199.38%, which exceeded the total profit of last year and created the highest historical results in the same period.
On April 10th, Samaranch, Honorary Chairman of IOC Life, and Wang Jinyu, General Manager of Foton Motor, jointly unveiled the launch of MP-X Global Parker.
According to the sales statistics of the Chinese auto industry, Foton Motor’s single-month sales and sales in March reached 55,000 units, which is equivalent to every one forty seconds. One Foton car was sold to end-users. This figure is enough to make Foton Motors rank first in China's commercial vehicles, and it also won the top spot in the monthly sales of domestic single-car companies.
This doubling growth rate has attracted the attention of all sectors of society, but also made the audience admire. What kind of power has made Foton Motor's rapid development? What is behind the growth?
Futian strategic layout adjustment into the harvest
According to Zhao Jingguang, deputy secretary of the Foton Motor Party Committee, the main reason for the opening of the Foton Motor in the first quarter was that the results of the company's second strategic adjustment are gradually emerging. "Old products can keep and new products can come up." This is the secret to the opening of the first quarter of Foton Motor.
When Foton Motor started its products, it was a single era light truck. In 2000, the national economy developed rapidly and steadily. The automotive industry is facing major opportunities for development. At this time, Foton Motor made the first strategic adjustment: The company decided to carry out multi-industry operations and realize the full range of commercial vehicle development. This adjustment has laid a solid foundation for the rapid development of Foton Motor during the “10th Five-Year Plan†period. Futian Automotive has since developed a full range of products covering all areas of commercial vehicles and formed eight major product brands, which have significantly enhanced the market competitiveness of enterprises.
Around 2005, the country strengthened macroeconomic control, and the growth of commercial vehicle production and sales slowed down. In order to deal with the impact of macro-control, Foton Motor also laid the foundation for a new round of growth for the company, and made a second strategic adjustment: the company has established a management policy of “high quality, low cost, and globalization†and adheres to “technology to create value and quality. "To win the market," take the expansion path based on intension growth, and realize the upgrading of all products.
Under the guidance of this new strategy, Foton Motor has made a series of adjustments in terms of organizational structure, human resources, product structure, and other aspects. The growth mode of the company has achieved a transition from an extension to an intensional growth. In terms of organization and management, it is no longer the unified management of all businesses by the Group. Instead, it implements the two-line parallel management model of the Industrial Group + SBU. The mature business and strategic business are independently managed by each business unit, while the Group only controls strategy and brand. While realizing the scale effect of the Group's unified management, the specific businesses are kept flexible and easy to participate in market competition; in terms of product strategy, the company’s ability to independently innovate in accordance with the strategy of “creating value through technology and winning market through quality†enhances the company's ability for independent innovation. The proportion of technical content and high value-added products will comprehensively improve the physical quality and service quality of products, narrow the gap between product physical quality and multinational corporations; continue to learn Toyota production methods, and introduce TPS into all aspects of the value chain to create high-quality, low-cost value. Chain system; At the same time, accelerate international market development and international cooperation, forming a new source of revenue for the company.
Foton Motor's first passenger car MP-X Mengpike
The second strategic adjustment is of great significance to Foton Motor. As a result, the competitiveness of Foton Motors and the competitiveness of its businesses have been elevated to a relatively high level. The competitiveness of the company has increased significantly, laying the foundation for Futian’s leaps during the “Eleventh Five-Year Plan†period.
After two strategic adjustments, Foton Motor has gradually transitioned from a single light truck product to a full range of commercial vehicle products (including light trucks, medium and heavy trucks, light passengers, and large and medium passengers, etc.), and its product structure has achieved high-end products from low-end products. Value of all-round adjustment of high-end products. Judging from the current situation, Foton Motor has completed the upgrading of all of its products, and its existing nine major product brands all live up to the expectations and are all in the position of industry leaders or challengers. The light truck products continue to maintain stable earnings, and the medium and heavy trucks have gradually matured and achieved rapid earnings growth. Other emerging product brands and business segments are also expected to become new profit growth points in the future. Foton Motors is entering a new round of rapid growth.
In the first quarter of 2007, Foton Motor's high-end products performed outstandingly. Among them, Auman, Euro V, Omar and Europe's full-scale replacement of Japanese Isuzu technology were used in combination with Europe's advanced technologies. These products accounted for the total number of Foton automobiles. The sales volume of 20.15% is expected to be larger next year, and will gradually become the main force in the Foton product line. Zhao Jingguang's secretary reminded reporters that in the first quarter of this year, Futian's net profit reached more than 100 million yuan, an increase of 199.38% year-on-year; and operating income of 6.2 billion yuan, a year-on-year increase of only 28.19%. The increase in operating income is not much, but the profits have doubled. This comparison shows intuitively and clearly that the contribution of new products to Foton Motor is increasing.
The rapid growth of high-end products vividly and vividly illustrates the correctness of the second strategic adjustment of Foton Motor, which makes the situation of “increasing production but not increasing income†of the automotive industry in the future will be completely history in Foton Motor.
Be good at grasping the pulse of the market High-end products are hot
In the first quarter of 2007, the high-end products such as Foton Heavy Truck Auman, Bus Euro V, and Light Truck Omar can all be on the market with strong sales and sales.
A salesman of Futian Automobile's Auman Heavy Truck told reporters: In the first quarter, many users rushed to buy Auman heavy trucks, and foreign users rushed to the Ouman factory in Beijing to pick up the goods in person. In order to ensure the smooth purchase of products, some users even made a crazy move, the newly-manufactured Auman window glass made a hole, so that genuine products become "residual" others do not buy, they will be very easy Buy it.
So what are the reasons that make Foton Auto products so strong sales? Zhao Jingguang, deputy secretary of the Foton Motor Party Committee, told reporters that the main reason is that Futian’s continuous technology upgrades and market-oriented competitive strategies have remained unchanged since their establishment, which has allowed Foton to maintain its leading position in technology and retain its strength. Firmly grasp the law of the market and be able to flexibly respond to market changes, while ensuring that Fukuda can save costs to a maximum extent and prevent waste of resources.
The full grasp of the market made Fukuda enter the industry every ten years to break the original structure of the industry, creating a miracle after another. Starting from Futian Xiaoka, no matter whether the production base of Foton Heavy Truck was put into production in 2002 or the production line of Euro V passenger cars marking the 1 million cars produced by Foton Motor in 2004; whether it was the launch of the 2005 Olympic Bell light trucks. In 2006, the European standard of Auman ETX and Omar's listing - market-oriented products have always won the market recognition. Therefore, Foton Motor has established the best understanding of the pulse of the market in the industry. Word of mouth.
Fukuda's ability to meet the pace of market economic development so precisely is closely related to the history of Foton Motor’s initial establishment.
On August 28th, 1996, 100 corporate enterprises from 13 provinces and cities across the country gathered to establish Beiqi Foton Motor Co., Ltd. in Beijing. The "100-year-old man-made Futian" became the most popular saying in the auto industry. At the beginning of its establishment, Foton Motors was at the forefront of the company’s institutional reforms, invigorated numerous state-owned assets and established a company limited by shares.
It can be said that the start of Futian was market-oriented, which created a natural market economy factor in Futian. Since then, each step taken by Foton Motor and each strategic adjustment has precisely coincided with the pace of market economy development. The achievements made by Fukuda in the first quarter are also inseparable from those who are good at playing the market economy.
R&D capabilities improve Product core competitiveness
Every number created by Foton Motor is enough to inspire people and it is enough to make the Chinese auto industry proud. However, Futian Automobile News spokesman Zhao Jingguang stated that achievements can only represent the past. The real value of Fukuda is not what it has created, but what it can continue to create. From the words of Zhao Shuji, we can easily find that Futian is more concerned with sustainable development potential—technical R&D capabilities than temporary profits. After all, from the long-term development of automotive companies, the power of technology is almost decisive.
In Fukuda, the improvement of research and development capabilities is not a “source of no sourceâ€. During the “10th Five-Year Plan†period, under the guidance of “Technical Value Creationâ€, the technology research and development system was gradually improved. At present, Foton Motor has established a national-level technology center, the Automotive Engineering Research Institute, and has established the Institute of Automotive Engineering, Overseas R&D Centers, universities and research institutes at home and abroad, and foreign professional centers. The research and development system consists of six levels: automotive R&D institutes, secondary factory research institutes, and supply chain synchronization R&D institutions. This technology research and development system enables Futian Automotive's product technology to adapt to the needs of the domestic market and keep up with the development trend of international automotive technology.
R&D talent is the guarantee for the promotion of Foton's auto technology. In the course of a decade of development, Foton Motors has attracted talented and talented individuals with excellent management and technical talents. Foton Motor has recruited more than 2,000 senior technical management talents and college graduates in various industries in China. At the same time, we are looking at the global talent market, recruiting dozens of foreign experts from Japan, Germany, and South Korea, and dozens of “returnees†who have had extensive working experience in automobile companies in GM, Ford and other developed countries. Under the leadership of the “returnees†talents, the R&D personnel of the Foton Automotive Research Institute are at the leading position both at home and abroad in NVH, side impact and other aspects of R&D.
The construction of the R&D system and the introduction of talents have laid the foundation for the technological innovation of Foton Motor, and continuous R&D investment has provided a strong guarantee for the improvement of the level of research and development of Futian.
There is a popular saying that we can no longer afford poor education. In Fukuda, this sentence has become even more impoverishable. According to statistics, Futian R&D investment has accounted for more than 4% of sales revenue for many years, ranking the forefront of the domestic automotive industry. In addition, Fukuda's R&D investment has been increasing year by year: the average annual growth rate has reached 153%. Although Futian had a large funding gap during the strategic adjustment period in 2005, its R&D investment reached 1.12 billion yuan. Futian Automobile's new R&D building will be fully operational in August 2007. This will be the most advanced laboratory in the commercial vehicle field in China. The completion of this laboratory has solved the problems of trial production and testing of Foton Automobile products, and will comprehensively enhance the independent innovation capability of Foton Motor and enhance the technical content of Foton Automotive products. In China's automobile industry, due to the backwardness of its own technical conditions, there is a large number of phenomena that use the market as a testing ground. The completion of the new R&D building in Futian will enable Futian's automotive products to completely eliminate this phenomenon, thus providing a strong product quality. Protection.
Not only that, Foton Motor's R&D investment is highly forward-looking. At present, China's automobile laws and regulations have no special provisions on the side collisions of automotive products, and developed countries such as the United States have already put forward relevant requirements. In order to be able to adapt to the international trend and meet future market demands, Foton Motor began to simulate and collide automotive products with technologies such as computer simulations a few years ago to resolve safety issues including side collisions in collisions. This will not only make Futian Automotive's products more advanced than its domestic counterparts in terms of safety, but also avoid the waste of time and costs caused by the actual vehicle collisions.
Input and return are always proportional. Up to now, the number of patents owned by Foton Motor has reached 152, which is far ahead in the field of commercial vehicles. Not only that, Foton has achieved a full range of commercial vehicle development, and the speed of replacement of new models is also increasing.
According to statistics, the time for upgrading commercial vehicles in the world is generally 5 to 10 years, while Foton Motors is shortened to 3 to 5 years. From the end of 2003 to the end of 2005, Foton Motors realized the upgrading of the Auman, Ouma, Euro V, Ao Ling, Era, Landscape, Legend, and Sapu 8 brands, and launched a new MPV model. These products are all based on European advanced technology, and industry insiders comment that they will not be outdated in the next three to five years.
Based on this, some experts pointed out that Futian's ability to grow to today's scale and achieve today's results is closely related to its strong R&D capabilities and fast time to market for new products. Futian’s ability to innovate through the emphasis on R&D is the key to Futian’s continued leadership in the industry in the future.
“At present, our technology and the developed countries’ automotive technologies do indeed have a gap, but this gap will gradually shrink. The “Eleventh Five-Year Plan†is a key period for technology improvement for Foton Motor, and it is also a good opportunity period. After five years We can wait and see the Futian auto technology level.†Fu Xuetai deputy general manager and director of the Engineering Research Institute Yan Xuebin is full of confidence in the development of Foton Motors.
Rapid growth in exports, significant growth in profits from overseas business
At present, the domestic commercial vehicle market is highly competitive and profits are diluted. Under such circumstances, expanding exports is undoubtedly a good way to increase profits. The gap between China's commercial vehicle technology level and foreign countries is narrowing, and China's labor force prices are relatively low, which makes China's commercial vehicle products have an inherently cost-effective advantage and can adapt to the needs of developing countries in their economic and social development. In recent years, the export volume of commercial vehicle products in China has been increasing year after year. As the first brand of commercial vehicles in China, Foton has been ranked first in China's commercial vehicle market since 2005.
In 2007, the momentum of international economic development remained good, which stimulated the demand for commercial vehicles in the international market. While taking advantage of the international economic trend, Futian Automobile's overseas market in 2007 won a good start. In the first quarter, it exported a total of 3889 vehicles, an increase of 505% year-on-year.
According to relevant personnel of Futian Automobile Overseas Business Division, the first quarter of overseas markets was in the off-season, during which time the overseas market automobile sales were generally low, and Foton Motors was able to rise in the off-season, generate huge sales growth, and has been committed to overseas for many years. The development of the market is inseparable.
Since 2003, Foton Motor has set up an overseas business unit to fully explore overseas markets and has established a unique overseas dealer team. Foton Motor regularly trains overseas distributors and rewards those who have performed well. Some dealers have received Mercedes-Benz and Audi cars from Foton Motors. Now “Foreign dealers†have become an integral part of Foton Motor. They agree with Futian Culture, and they recognize Futian products. They have a strong interest in Foton Motor and overseas sales have increased year by year. They have become the bridge for Foton Motor to go global.
While exporting the entire vehicle, Foton Motor also established a factory overseas. At present, factories have been established in five countries and regions including Pakistan, Vietnam and Iran. Setting up factories overseas not only helps to directly use local resources, but also more directly understands local consumer demand and local topographic features, shortens transportation time, reduces costs, and more effectively captures the local market. This greatly promoted the overseas sales of Foton Motors products and accumulated rich international operating experience.
With strong product strength, solid overseas market development and rich experience in overseas operations, Foton Motor’s overseas exports have increased year by year. In 2002, it exported 500 vehicles; in 2003, it exported 1,600 vehicles; in 2004, it exported 9,000 vehicles, an increase of 458.7% year-on-year, accounting for the current year. The total number of automobile exports in China was 12.3%. In 2005, the export volume reached 10,000, which ranked first among domestic commercial vehicle manufacturers. In 2006, it exported 16700 vehicles and continued to maintain the first position of commercial vehicle exports.
Overseas business has become an important profit point for Foton Motor, and this point will become more and more important for Futian in the future. As Wang Jinyu, General Manager of Foton Motor, puts it, “The future of multinational companies is in China and the future of China’s own brands is globalâ€.
It is reported that the goal of Foton Motor is: By 2010, the annual sales of automobiles will exceed 1 million, and sales revenue will exceed 80 billion yuan. An important basis to support this goal is that 20% of the output will be sold to overseas markets.
Accelerate the process of joint ventures and cooperation The market status of Futian can be expected to improve
As a young automobile company entering the auto industry for only a decade, Foton Motor has unparalleled advantages in its latecomer. If the growth of profit in the first quarter indicates that Foton Motor has entered the fast track of development, then the acceleration of internationalization and the breakthrough in the development of passenger vehicles will surely make Futian a two-step leap forward for future development. The future development of Foton Motor will be left to People have more imagination.
On October 19, 2006, Foton Motors and Cummins signed a formal joint venture agreement. The two parties will establish Beijing Foton Cummins Engine Co., Ltd., a light-duty diesel engine company, with a 50:50 equivalent ratio. It is reported that the Cummins project of Foton Motors is currently awaiting the approval of the relevant national ministries and commissions. If the project goes smoothly, the joint venture high-end engines from Foton and Cummins will be broken in the Changping District of Beijing this year.
A prominent feature of the Beijing Futian Cummins Joint Venture Project is that the two models to be put into production in the joint venture company are all new products that have never been put into production in any place including the United States, and that Cummins has invested heavily in building it. The high performance light diesel engine developed for the European and American markets in the 21st century can meet Euro III, Euro IV and above emission regulations.
“The Cummins engine with international leading level will provide a stronger heart for Foton Light Trucks, which will further help improve the quality, brand and image of Foton Motor Products,†said Zhao Jingguang, a spokesperson for Foton Motors.
With the joint venture and cooperation with engine manufacturers such as Cummins, Foton Motor has completed its all-round layout of its own power. The powerful motive force will surely form a huge boost for the future development of Foton. Professionals said: The formation and improvement of this power layout will at least ensure the advantageous position of Futian in the domestic and even the world commercial vehicle market in the next 20 years.
If the joint venture with Cummins will provide Fudan with a pentium's heart, then Dyke's targeted additional launch will undoubtedly add a pair of wings to Futian's take-off.
On December 18, 2006, Foton Motor passed a resolution on the additional issuance of Dick. A three-year marathon run that has gone through with the Dai-Ke Group has finally brought about substantial results. Dai Ke Group was allowed to participate in the 24% shareholding of Foton Motor’s shareholders. With the advent of powerful commercial vehicle predators Dai Ke Group, Foton Motor is bound to usher in a new historical development opportunities. Dai Ke's shares will help Foton Motor avoid the technical shortcomings, improve the high-end product chain of heavy-duty trucks, and increase the level of strategic management to achieve all-round international integration.
It is still not known whether the Ministry of Commerce will approve the joint venture project between Futian and Cummins and whether China Securities Regulatory Commission will approve Dick's private placement. However, one thing is certain: That is, the global strategy of Foton Motor has only just begun.
"We have a lofty goal to become Asia's largest commercial vehicle manufacturer and one of the world's largest truck manufacturers," said Wang Jinyu, general manager of Foton Motors. In fact, Fukuda's dream of a car is also in his practice.
Steady progress of passenger car Futian will seize more market space in the future
In the process of economic development in China, industrialization is significantly faster than urbanization. This leads to the development of commercial vehicles that are generally more mature than passenger vehicles. However, the future market for commercial vehicles is not as wide as the passenger vehicles and the profits are thin. . In order to continue to maintain its leading position in the future market competition and to seize more market space, Foton Motor will enter the field of passenger vehicles in 2006.
“A large multinational automobile company basically follows a full range of product development routes. Foton Motor should become an internationally renowned company and realize its goal of globalization. The production of a sedan is an inevitable path.†Zhao Jingguang, deputy secretary of the Foton Motor Party Committee, told reporters. However, Futian will continue to expand and strengthen commercial vehicles and maintain its unique advantages in the field of commercial vehicles in China."
In the commercial vehicle industry, Foton Motor will break the market structure in this field every time it enters a field. Taking the light truck as an example, Fukuda entered the championship in the first year of its entry into the light truck field. This position has never been shaken in the past eight years. This is also the case in heavy trucks. In 2003, Fukuda entered the heavy truck field. Since then, China's heavy trucks More than 10% of the market's market share was assigned to Fukuda.
It is reported that this year's Futian's first sedan will be available. There is reason to believe that with the accurate market vision and preemptive strategy and tactics, Futian will certainly be able to make a breakthrough in the field of passenger vehicles in the future.
After undergoing a strategic adjustment in 2005 and a smooth transition in 2006, Foton Motor, a company that had created a "speed miracle" in the history of China's automobile development, finally achieved fruitful results in early 2007, once again to the market. The good start of sales of Foton Motor 2007 will surely become another new starting point for the sustainable development of Foton Motor.
View related topics: Beiqi Futian, Futian Automobile brand value of 22.157 billion yuan
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