Dongfeng Cummins: Steady Development, Market Diversification

In 2008, the global economic recession triggered by the US subprime mortgage crisis has caused China's economy to face enormous difficulties. Raw material prices have soared and the exchange rate of the RMB has soared. Under adverse circumstances, the domestic automobile engine industry has a good harvest, taking the performance of major players in the industry as an example: From January to June, Weichai Power's total sales revenue reached 28 billion yuan, engine sales increased by 58% over the same period last year, Dongfeng Cummins At the end of the first half of the year, the engine company realized production and sales of more than 100,000 engines and completed 70% of the annual plan, which is higher than the average growth rate of the engine industry.

Such achievements can be attributed to factors such as the macroeconomic environment of the market, such as the early release of sales of the 3rd emission standard of the motor vehicle country in July, and the result of Dongfeng Cummins’ efforts to diversify and diversify the market in recent years. Among the 100,000 engines produced by Dongfeng Cummins in the first half of this year, the construction machinery market grew by more than 70% year-on-year, and the growth rate of generator sets doubled year-on-year, both exceeding the growth rate of the automotive market.

In recent years, with the development of the national economy, the market for automotive engines has continued to expand, but the growth rate has gradually eased; the engine market has also shifted from an original car market to a multi-center where shipbuilding, construction machinery and generator sets coexist. . For Dongfeng Cummins, the multi-centered diversification has two meanings. The first is to open up the non-vehicle market to achieve diversified products, and establish a close symbiotic relationship with all aspects of the country’s macroeconomic construction to reduce singleness. The risks brought by the market and single products; the second is that the automotive market has also vigorously promoted the entire vehicle market outside the Dongfeng trucks to achieve a diversified vehicle market. In this way, we can better promote the company's long-term, sustained and stable development.

In order to realize the diversification of the entire vehicle market, Dongfeng Cummins has formed close strategic partnerships with vehicle manufacturers such as Yutong, Jinlong, Valin, and Foton in recent years. By playing the role of an integrated power service provider, Dongfeng Cummins not only applies to vehicles. Manufacturers provide products, and also provide services, training, and even cooperation in marketing, this "full-time company" model, greatly promoted the sales of Dongfeng Cummins, making the Dongfeng Cummins engine in many customers in the heavy trucks, buses Such products have been widely used; At the same time, Dongfeng Cummins has also vigorously expanded overseas markets, with strong brand influence and excellent product quality, the products are sold to Russia, Eastern Europe, the Middle East, Brazil and other countries and regions.

From the perspective of development in recent years, the growth rates of the Dongfeng Cummins Marines, Engineering Vehicles and Generators Market (collectively referred to as non-vehicle markets) are very fast. Compared with the single product type and large market size in the automotive market, non-vehicle market products have more diversified product requirements and each market has a relatively limited scale. This requires the original product development, production, and marketing of Dongfeng Cummins. Systematic adjustments are made. Take the generator set as an example, the original Dongfeng Cummins engine generator set has limited specifications, and the demand for low speed and high torque is difficult to meet. In this regard, the Dongfeng Cummins product engineering department and the marketing company's product application department closely cooperated to develop new types of generator sets that meet the needs of different specific markets. In the May Wenchuan Earthquake, Dongfeng Cummins donated the urgently needed generator sets to the disaster-stricken areas at the first time, which provided support for the recovery and reconstruction of the disaster areas.

In parallel with the development of product adaptability, it is a market strategy and service strategy for non-vehicle markets. Compared with the automotive market, the end-users in the non-vehicle market are more professional and have their own judgment on the brand's perception and choice. They are more accustomed to customized products and customized services. In response to this, Dongfeng Cummins has strengthened its communication with end users, enhanced end-user brand awareness and fostered loyalty. The value brought by this market strategy is that the user will specify the Dongfeng Cummins engine and the entire vehicle manufacturer will then match and install it according to their needs. This is commonly known as the "single order." It is also important that, in close contact with end-users, you can get first-hand information on market demand, and then adjust product strategies to enhance the competitiveness of enterprises.

In addition, in terms of service models, Dongfeng Cummins's series of improvements also reflect the accurate grasp of market characteristics. In particular, construction machinery vehicles, which work on the construction site most of the time, have complex working conditions. Once a failure occurs, it is very troublesome to repair. This means that the service personnel must not only possess the special maintenance skills of the construction machinery, but also need to visit the customer in person and keep abreast of the use of the vehicle. To this end, Dongfeng Cummins has specifically formulated relevant service regulations and conducted customer visits at regular intervals so as to solve vehicle breakdowns at the first time and minimize user losses. Although these measures will make Dongfeng Cummins's service cost increase by a certain extent than before, it has greatly reduced the user's trouble and won the user's approval.

It can be said that Dongfeng Cummins' steady and rapid development in the market over the past years is inextricably linked to its effective diversification strategy. Dongfeng Cummins timely adjusted the company's development strategy according to changes in the market environment and the industry, and through effective implementation, these strategies were successfully implemented. It is not difficult to see that this kind of forward-looking vision is an important factor for the long-term, sustained and stable development of enterprises.

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