By divesting itself of its ancillary businesses and focusing on its main business, sinotruk Heavy Duty Truck has made a breakthrough.
Following its commitment to focus on its main business without distractions, Sinotruk Heavy Duty Truck achieved a transformation in 2020. Its economic indicators in the first three quarters have already exceeded those of the whole of 2019, and it has successfully stepped up to the top level of the Chinese commercial vehicle industry.
At its annual business meeting in 2019, CNHTC set the tone for divesting its non-main businesses. After the successive elimination of operating projects such as real estate, hospitals, and property, CNR has focused on its main business of commercial vehicles and is thus better able to bear the weight of the epidemic.
In 2020, sinotruk Heavy Industry Corporation achieved a significant improvement in all aspects of its performance. The figures show that CNR achieved a 48.4% year-on-year increase in revenue and a 65.5% year-on-year increase in profit. Commercial vehicle production and sales broke a new record of 500,000 units on 29 December, up 68.8% year-on-year, with heavy truck sales exceeding 300,000 units, up 67.4% year-on-year. In addition, its industrial value added increased by 51.4% year-on-year, and tax paid increased by 41.5% year-on-year.
China’s first heavy-duty vehicle was the Yellow River JN150 eight-ton truck, which was born in 1960 at the Jinan General Automobile Manufacturing Plant (built-in 1930), the predecessor of Sinotruk Heavy Duty Truck Corporation and known as the cradle of China’s heavy-duty automobile industry. It was born in the Jinan General Automobile Manufacturing Plant (founded in 1930), the predecessor of sinotruk Heavy Duty Truck, which is known as the cradle of China’s heavy-duty vehicle industry. sinotruk Heavy Duty Truck has a history of 90 years, and the Yellow River brand carries the memories and sentiments of a generation of people.
Rebuild premium branding
The rebranding of the high-end national brand Yellow River has laid a solid foundation for the layout of sinotruk Heavy Duty Truck in the high-end trunk logistics tractor market. The new generation of Yellow River heavy-duty truck, launched on 16 September, has an innovative low wind resistance design, with a wind resistance coefficient of less than 0.4, the lowest among mass-produced heavy-duty trucks in the world. With a fuel-saving effect of 8-10% at 70 km, it has gained a dominant position in the heavy truck market.
Through the huge investment in R&D, sinotruk Heavy Duty Truck has formed a quality and high-quality product matrix and market layout with the three brands of Huanghe, Shante, and Howo, and continuously The product performance has been upgraded to enhance the comprehensive strength of the products. The product line of Shante truck was broadened from the C series to the G series, further improving the market segmentation plan and focusing on key markets, which achieved a breakthrough in the context of the expansion of infrastructure projects and the corresponding policy support last year.
High quality products
According to public information, sinotruk Heavy Duty Truck will invest more than RMB 3 billion in R&D in 2020 and will reach RMB 5 billion in 2021, while it has clearly stated that it will continue to increase its R&D investment in the next five years. With the industry’s leading technology level, CNR has achieved comprehensive improvement in the field of intelligence and electrification. Not only has it upgraded the port automation of Tianjin Port with L4-level pure electric driverless port container heavy trucks, but it has also achieved L2-level automatic driving and reserved L3-level upgrade interface on the newly launched Yellow River heavy trucks.
In addition to having strong product strength, sinotruk Heavy Duty Truck has actively carried out network marketing to cope with the unfavorable situation under the epidemic. As early as February, it took the lead in launching an online showroom, which moved all brands and series of models to its numerous WeChat public numbers, not only facilitating customers to compare and choose models, but also laying the foundation for further customer conversion and product sales. In addition, sinotruk Heavy Duty Truck also uses online live streaming to strengthen emotional communication with customers and explore potential customers, while planning events such as the Shanteca creative short video competition to enhance the brand image.
Quality is the cornerstone of a brand and the guarantee of an enterprise’s development, but perhaps the only one who fears quality is sinotruk Heavy Duty Truck . The 2021 Annual Business Meeting stated that it would take zero-kilometer failure rate ≤ 10 PPM, after-sales failure rate ≤ 1,000 PPM, and one veto for major and batch quality accidents as its quality work target. The quality work target is to eliminate 1,000 unqualified suppliers. As Tan Xuguang, Chairman of sinotruk Heavy Duty Truck said, We will fire at anyone who is not responsible for product quality.