2014 Guangzhou International Commercial Vehicle Exhibition

Iveco Daily and new models from JAC and Sichuan Hyundai Motor on display

2014/12/25

Summary


The 2nd Guangzhou International Commercial Vehicle Exhibition

The 2nd Guangzhou International Commercial Vehicle Exhibition was held, annexed to the Guangzhou Motor Show, from November 20, 2014. It was held in the City of Guangzhou, China, some 3,000km southwest of Tokyo.

Many commercial vehicle (truck) expositions in China are held in parallel with the motor show held biennially in Shanghai, Beijing, Guangzhou, etc. The largest commercial vehicle exposition which is held separately from motor shows is the biennial China Commercial Vehicles Show in Wuhan (the next one will be held in November 2015).

The commercial vehicle exhibition in Guangzhou may be smaller in scale. But it is one of the important international exhibitions playing a key role in the Zhu Jiang delta market for high-end commercial vehicles. The event is co-organized by local logistics and transportation organizations in Guangzhou, the China Association of Automobile Manufacturers and Society of Automotive Engineers of China. It had 31 small to large manufacturers in total as compared to only 20 exhibitors in Beijing Motor Show.


Guangzhou International Commercial Vehicle Exhibition

Guangzhou International Commercial Vehicle Exhibition

Main exhibits:

The big three truck manufacturers- FAW, Dongfeng Motor Commercial Vehicle Co., Ltd. and China National Heavy Duty Truck Group Co., Ltd., did not participate in the exhibition. A Dongfeng Motor Commercial Vehicle's subsidiary was present. GAC Hino Motors displayed its products at the Guangzhou Transportation Fair that was held in late August and was absent from this commercial vehicle exhibition. The following were the main exhibits:

* 1) All-new light-duty, medium-duty and heavy-duty vehicles by Janghuai Automobile Co., Ltd. (JAC) and Sichuan Hyundai Motor, and the Iveco Daily that was introduced at the IAA.

* 2) Among heavy-duty vehicles on display were the all-new lightweight tractors by Shaanxi Heavy Duty Vehicle, and all-new CNG trucks by Dongfeng Special Commercial Vehicle Co., Ltd.

* 3) Other exhibits included steel lorries for transporting oil and natural gas, and a variety of rear bodies.


(Chinese light-duty trucks are designed after Japanese and the heavy-duty trucks after European counterparts, respectively.)

Recent trends in Chinese markets:


Recent trends in Chinese markets

Recent trends in Chinese markets

Photo: Street views of Guangzhou and trucks on display in the outdoor exhibition yard

The truck market in China remained stagnant until 2012 due to the government's economic policies and suppression of excess infrastructure construction. There was a sign of recovery in 2013 with an upward demand for logistics and last-minute demand before the introduction of new exhaust gas emission standards. But the truck sales (medium- and heavy-duty trucks) from January to November 2014 fell 9.2% year on year (y/y) to 658,000 units. The truck market (medium- and heavy-duty trucks) in the same period was led by Dongfeng Motor Commercial Vehicle (market share of 24%), followed by China National Heavy Duty Truck Group (18%), FAW Group (13%), Beijing Foton Motor (9%) and Shaanxi Heavy Duty Vehicle (8%).

In the keynote speech at the Global Automotive Forum in Wuhan held in October, a top executive of Dongfeng Motor Commercial Vehicle suggested future directions for the truck manufacturers in China on a long range. He indicated three directions of development for the Chinese truck manufacturers to win competition and lead the global truck market. (Source: ChinaTrucks.com)

"After the rapid growth, the heavy-duty truck market in China will see transformation within the next few years. The Chinese market will outgrow the markets in Europe and North America and win a global market share of 30%. To make this happen, the Chinese manufacturers will need to observe the following changes to preempt trends of new development."

1) Chinese manufacturers will no longer be able to rely on production quantity. They will need to focus on quality in order to meet truck development requirements.

2) The customer will focus not only on price but also on reliability and operational efficiency as they needed upgrades. Customer's needs are changing. They will be looking, not for low-priced trucks, but for the total cost of ownership of trucks to engage in highly efficient and important logistics operation.

3) Truck manufacturers should not be content by meeting users' transportation needs alone. They should change their standpoints and provide more value as well as trucks for users. To do so, they will need to continuously offer advice about trucks, driver training, and service and maintenance throughout the life cycle of a truck.

Related Reports: IAA Hannover Commercial Vehicle Show 2014 Report
(Part 1) Daimler’s autonomous truck and MAN’s new engines on display
(Part 2) Exhibits by Volvo, Scania, Renault and ZF