Three-pronged victory over Hefei Yucheng Auto Yuchai Heavy Truck Market

"We sold only 200 vehicles last year. We can sell more than 400 heavy trucks this year, an increase of more than 100% year-on-year." Upon seeing this reporter, Yu Xiusheng, chairman of Hefei Yucheng Automotive Service Co., Ltd. (hereinafter referred to as Hefei Yucheng), was happy to Said.

It is understood that Hefei Yucheng, which started selling Jianghuai heavy trucks since 2005, was originally ranked high in the local market. However, in 2013, the sales volume of this private company had a big “upset” and its market share jumped to the top two. How does the rising star in this heavy truck dealer achieve transcendence?

According to Yu Xiusheng, the substantial growth of Hefei Yucheng has benefited from several factors.

Market share jumped second and Hefei Yucheng scored good results

As the capital of Anhui Province, Hefei is also an important home appliance production base. Major domestic appliance brands such as Meiling, Haier, Gree, and Midea have factories in Hefei and are very large.

The extension of the home appliance industry chain, coupled with the location of Hefei is very suitable for road transport, creating a well-developed trunk logistics and secondary transportation in Hefei. “Cargo trucks and tractors are the mainstream models in the Hefei heavy truck market. The annual market capacity is about 2,000 vehicles.” Yu Xiusheng analyzed.

Although the market capacity is not too large, Hefei's heavy-duty truck industry is fiercely competitive. At present, mainstream heavy-duty truck brands include the host Jianghuai Geerfa and FAW Liberation, Dongfeng Commercial Vehicles and Futian Auman . “In the sub-segments such as trucks and construction vehicles, Geerfa’s sales have already surpassed or equalized the competing products, and only tractors sales were slightly lower than the major competing products.” Zhang Zhongqun, general manager of Hefei Yucheng heavy truck marketing company, told the reporter. This year, Jianghuai Gehfa’s share in the Hefei heavy-duty truck market has jumped to second place.

Extend the whole industry chain Yu Cheng breaks through Hefei heavy truck market

Yu Xiusheng believes that Hefei Yucheng can come from behind, largely benefiting from the company's one-stop solution for users.

"In general, users will encounter two problems when they purchase a truck. I call it two circles." Yu Xiusheng told reporters. The first “circle” is the stage of business process from car selection to operation. Due to the complicated process and procedures, and professionalism, many users are more “headache” to this problem, and therefore need a “one-stop” service for car purchase.

The second "circle" is a logistics and transportation plan, which means that the car can best meet the needs of users. Yu Xiusheng said that when the user finds Hefei Yucheng, Hefei Yucheng will first analyze the logistics for the user, first understand the user’s source of goods, the condition of the goods (voluntarily regarding the carrying capacity, volume of the vehicle, and the volume of the goods), and the transportation route (mountain, In terms of various factors such as plain, high cold, or high temperature areas, recommend suitable models and configurations.

“When a user purchases a car, the dealer must consider both 'circles' at the same time, and the two 'circles' are completed, and all the (user's) problems can be solved.” Yu Xiusheng believes that as the heavy truck industry competes more and more Intense, in the same configuration, the same price, the user tends to choose more extended service, and dealers can complete all the procedures once. “It's like a popular supermarket nowadays where customers can get almost all of their needs in one go. With a single store, the market will be smaller and smaller for individual groups.”

In light of this, Hefei Yucheng has expanded its business scope to the upstream and downstream industrial chain based on the solid sales of heavy trucks. “We are promoting group operations, and the business is divided into four sections, including commercial vehicle trading companies, vehicle maintenance companies, commercial vehicle parts companies, and transportation companies (mainly based on industrial park operations and lorry attachments).” Yu Xiusheng disclosed. “In addition, we are still actively applying for the establishment of a motor vehicle performance testing station. In the future, we will gradually form a complete commercial vehicle industry chain including complete services such as car purchases, mortgages, home loans, insurance, gas filling, maintenance, and annual inspections. Better one-stop service."

One-third of contribution rate Yuchai Heavy Machinery becomes a "secret weapon"

Hefei Yucheng’s sales can get such a big boost. In addition to the one-stop solution “to force”, Yu Xiusheng has another “secret weapon”: “That is Yuchai Heavy Machinery.”

“My first contact with Yuchai dates back to 1993. After I retired from the army, I set up a transport team. Although Yuchai’s engines were not used at the time, I was engaged in transporting Yuchai engines from Yulin to Hefei. The business of Xiamen and other places." When talking about his relationship with Yuchai, Yu Xiusheng felt a smile on his lips.

In 2005, the JAC Gehl Heavy-duty truck was officially introduced to the market, and Hefei Yucheng also began to transform into the first distributor of JAC Gehl. "The Yuchai engine is the main engine of the JAC heavy truck, and my relationship with Yuchai is even closer."

Speaking of Yuchai Heavy Machinery, Yu Xiusheng believes that based on feedback from users, he concluded that the brand's engine has at least the following advantages. “First of all, Yuchai’s advanced engine design has very good power performance. Moreover, Yuchai’s engines are very fuel efficient compared to other engines in the same configuration and in the same power segment. Currently, Yuchai’s heavy-duty truck users in Hefei have already Formed a good reputation."

Secondly, Yuchai established a complete set of after-sales service system with high service standards and can help users solve problems in time. “For heavy truck users, time is money.” Yu Xiusheng, who was once engaged in logistics transportation, has a very deep feeling about this. He told reporters that Yuchai attached great importance to after-sales service and continued to improve the function of regional service centers. Yucheng's Yuchai Service Station not only engages in after-sales service, but also has functions such as recycling of old parts and issuance of new parts, and regular training for personnel at other service stations in the region. "In the case of division of responsibilities under specific circumstances, Yuchai is also more humane, fully understanding the difficulties of users."

According to reports, in 2013 Hefei Yucheng sold more than 100 vehicles equipped with Yuchai Heavy Machinery, which accounted for more than one-third of the company's total sales, especially for trucks and light weight dumping products. More than 90% were Yuchai machine. "It can be said that Yuchai has made great contributions to the growth of Hefei Yucheng this year." Yu Xiusheng told reporters.

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