Explore the future of Xi'an Cummins: development or crisis?

In the past two years, many industry professionals have questioned the development of Xi'an Cummins, such a sales volume is not high, the 11-liter heavy engine-based companies in the end can survive the slump in the market it? Faced with development or crisis, this question, at the Xi'an Cummins 2015 annual business meeting, China Truck Network reporter interviewed Mr. Huang Haitao, general manager of Xi'an Cummins, he gave a clear answer.

Sales grow steadily year by year

Looking at the development of Xi'an Cummins over the past few years, especially between 2013 and 2014, the sales volume of products has increased significantly from before. In 2014, compared with 2013, Xi'an Cummins achieved a 63% increase in Shaanxi Auto's market, a 41% increase in the mining dump truck market, a 127% increase in the passenger car market and a 98% increase in the overseas market.

Xi'an Cummins General Manager Huang Haitao
Xi'an Cummins General Manager Huang Haitao

“The total order volume of Xi’an Cummins in 2014 was slightly higher than in 2013. Segments dominated by Shaanxi Auto continued to grow. Other complementary markets, such as the wide-body ore car market and the passenger car market, also broke through again. The operation of the enterprise has entered a virtuous circle and the capacity for sustainable development is basically in place.” Huang Zong said that Xi’an Cummins’ main business strategy, business model, and profitability have been recognized, and the main operating indicators have been flat or improved compared to last year.

In addition to Xi'an Cummins' own development, its cooperating enterprise Shaanxi Auto and parent company Cummins China also performed equally well, reflecting the vitality of corporate development. It is understood that in 2014, Shaanxi Automobile's sales of civilian goods increased by 11% year-on-year, and its market share increased by 2.9% year-on-year; segmented market sales improved, structure optimization, port market, standard loading market, dump truck market, natural gas market, regional improvement; At the end of the quarter, Cummins China's total sales revenue increased 12.5% ​​year-on-year, engine sales in the mid- and heavy-duty truck market increased by 15%, 23%, and 7%, respectively, for three consecutive quarters; new products were listed one after another: heavy-duty trucks customized ISG, engineering machinery dedicated power L9.3 and QSB7, new natural gas engine L8.9G.

Various sales figures show that Xi'an Cummins is in a good state of development and will continue.

Grasping development opportunities to expand overseas markets

The benign development of the enterprise also comes from the correct judgment and grasp of the market by the enterprise. Under the premise of meeting the market development law, the accurate prediction and execution of the market also injected vitality into the development of the enterprise. Xi'an Cummins has grasped the overseas market and The rising sales data of its overseas markets just proves this point.

“Since 2013, we have been aware of the threat that our customers have transferred to us, and have consciously determined which markets will bring us sales. After analysis, we have discovered that overseas will be a potential market. It turns out that we The judgment is very correct. Only last year's export sales accounted for more than half of the total sales.” Huang Zong said that sales of engines driven by the export of host plants such as trucks, passenger cars and construction machinery products are opportunities for enterprises to grasp. .

According to reports, many OEMs have taken the lead in grasping overseas markets. In particular, some developing countries have provided opportunities for exports. How to use and digest these advantageous markets has become the key to business development. Xi’an Cummins’s judgment and utilization of opportunities exceeded their counterparts and became pioneers on the road to exports.

“The export must have a good time, so take a dump truck. After experiencing the blowout of the industry, the market continues to shrink. In order to better develop the existing OEM, we will look for overseas markets. We will also choose a stronger cooperation. Partners, grasping the pulse of their exports and mastering export opportunities, exports have become our new direction and optimal competitiveness.” Because of the accurate judgment of overseas markets, sales in overseas markets in 2014 have played an active role in the development of the company. The role of promotion.

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