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Cities are the “main battlefields†that are sold by car manufacturers, while manufacturers of minicars, passenger cars, and trucks focus on the vast rural market. At the 2006 China Rural Auto Market Development Strategy Forum held in Liuzhou yesterday, experts from relevant national departments and persons in charge of domestic auto companies discussed the status quo, development model, and development prospects of the rural auto market, and discussed the rural auto market. The outlook is promising.
New rural construction stimulates car consumption
The automobile industry analysis report published by the China Association of Automobile Manufacturers in the first three quarters of this year shows that the overall production and sales of trucks have steadily increased, and the growth rate of light and mini trucks is more obvious. These models are mainly sold to rural areas. This shows that China's rural auto market has become another battle for related auto companies.
Jiang Lei, executive vice president of the China Association of Automobile Manufacturers, said that overall, the rural automobile market in China has shown tremendous consumption potential as the rural economy develops. The factors such as low income level of farmers, relatively backward road conditions, weak product adaptability, and unsatisfactory after-sales service and spare parts supply have constrained the development of the rural automobile market to a certain extent, but with the country's investment focus shifted to rural areas. The annual investment in new rural construction amounts to several hundred billion yuan. The resulting booming demand for transportation tools is bound to strongly stimulate the rural automobile market that is being cultivated and developed. This is undoubtedly a good news for companies that produce miniature cars, passenger cars and trucks.
Liu production automobile market pretty good sales
Chen Xiangqun, Mayor of Liuzhou City, also believes that with the development of the rural economy, the income of farmers has continued to increase, and the mini-vehicle rural market and the truck-carry rural market have shown strong vitality. He hopes that Liuzhou's auto manufacturers will be able to meet the "special industrial needs, multi-functional demands, and ultra-minimum demand" in the rural auto market to produce automotive products suitable for rural development and suitable for farmers' needs.
Although some of Liuzhou’s automobile companies are targeted at urban areas, the current consumption situation is that the biggest consumer potential is still in rural areas. SAIC-GM-Wuling’s mini-vehicles, Dongfeng Liuzhou’s trucks, and FAW Liut’s trucks are almost all of the products currently sold in the rural automobile market.
Developing Rural Vehicle Enterprises Must Have Innovative Consciousness
Jiang Lei said that for the production enterprises, to occupy the rural automobile market, one must consolidate their existing positions, conscientiously do a good job in the existing rural market sales and service network construction, and timely provide high-quality maintenance services and repair parts, On this basis, the market share will be further expanded; the second is to refer to the different economic development conditions in the eastern, central and western regions and various geographical conditions, and formulate and develop plans and targets for rural vehicles. The products must take care of safety and energy conservation. "Environmental protection" should also take into account "cheap, practical, and reliable." The third is to combine the independent innovation of enterprises, and to develop the marketable vehicles for rural markets as an important practice for independent innovation of enterprises. In these areas, SAIC-GM-Wuling in Liuzhou has performed more eye-catching. They have set up sales and after-sales service outlets in counties across the country, and they are already working hard to innovate products. Their purpose is very clear. Wuling cars enter the rural tens of thousands of households.
For the “automobile city†in Liuzhou, if we want to make a difference in the rural auto market, there are two tasks that should be top priorities. First, the relevant government departments should make great efforts to build rural infrastructure, especially rural road conditions should be further improved, and take various measures to increase farmers' income, increase their awareness of consumption, and do their best to cultivate the consumption environment of the rural automobile market. Second, auto companies should find ways to improve their products and produce automotive products suitable for rural development and suitable for farmers' needs. (