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Coal transport has always been a primary local industry in Sanmenxia, Henan Province. With the decrease in coal prices and the increase in transport costs in recent years, the economical LNG vehicle has become transporters' favorite.
Xingtong Dongfeng Commercial Vehicle 4S Store enjoyed a safe lead in the sales of diesel coal transport vehicles in Sanmenxia a couple of years ago. However, with the hot sale of the LNG trucks in recent years, the store's market has been squeezed by other distributors due to the failure to keep pace with market demand changes.
The turnaround happened in August 2014. With the entry of Dongfeng Kinland LNG coal transport vehicles into Sanmenxia, Xingtong has gradually taken back the lost market share by virtue of the advantage of Dongfeng chassis and the outstanding comprehensive performance of Yuchai LNG engines.
Dongfeng Kinland LNG coal transport vehicle selling well in Sanmenxia
Xingtong's market share was carved up due to the failure to keep pace with market demands
According to the source, there are 15 power generation enterprises in Sanmenxia with a total installed capacity of 3.2655 million kilowatts, roughly accounting for 6.5 percent of Henan's total installed capacity. The thermal power generation capacity was 2.83 million kilowatts, accounting for 87 percent. Affected by this, coal transport has become Sanmenxia's primary highway transport market and the most competitive battlefield for local truck distributors every year.
"Coal transport vehicles account for 90 percent of all vehicles sold annually, and about 1,000 units are updated every year," Yin Suidong, sales manager of Xingtong Dongfeng Commercial Vehicle 4S Store, told the reporter.
Yin Suidong, sales manager of Xingtong Dongfeng Commercial Vehicle 4S Store
Speaking of the sales proportion of Dongfeng commercial vehicles in Sanmenxia's coal transport vehicles, Yin said Dongfeng vehicles account for over 60 percent of all coal transport vehicles in Sanmenxia; and Dongfeng coal transport tractors account for nearly 90 percent of all coal transport tractors in Sanmenxia. "We sell about 600 vehicles for update annually, accounting for 60 percent of all vehicles updated," he added.
However, Xingtong's market share has obviously been carved up by other truck distributors in recent two years, especially since the first half of 2013. Why?
"Most trucks previously used by customers in Nanyang's coal transport market are Dongfeng vehicles. However, customers here switched to LNG coal transport vehicles (an LNG vehicle saves 50,000 yuan compared to a diesel vehicle) from the first half of 2013, when Dongfeng had not launched LNG vehicles so as to give some opportunities to other brands, especially Auman, Jiefang and SXQC's vehicles which impacted on us greatly."
In nearly one year from the second half of 2013 to August 2014, Xingtong lost sales of nearly 300 units in its strong market.
Kinland LNG trucks + Yuchai engines support Xingtong's "comeback"
Xingtong's "frustration" was temporary. In August 2014, Dongfeng LNG coal transport vehicles moved into Sanmenxia and Xingtong began to recommend such vehicles to customers.
"At the beginning, given tractor customers' little knowledge of Yuchai engines carried by Dongfeng Kinland LNG trucks, we took a prudential promotion strategy by offering two vehicles for trial and comparison with other LNG vehicles."
After some period of use, some customers reported that Yuchai 6MKN LNG engine carried by Kinland is powerful with little gas consumption, which inspired Xingtong greatly. "In a survey afterwards, we discovered that this is because these customers had to cover mountain roads and the in-cylinder brake of Yuchai 6MKN engine can save a lot of gas for them in this section," Yin analyzed.
Yuchai Sanmenxia Xingtong Service Station
With the personal trial and mount-to-mouth spread of a growing number of customers, local customers' recognition of Yuchai engines has grown gradually so as to boost the sales of Kinland LNG coal transport vehicles. At Xingtong 4S Store, the reporter saw a couple of customers. According to them, a Kinland truck powered by Yuchai 6MKN engine saves 200 yuan to 300 yuan in a round trip compared to other vehicles; the combination of Yuchai engines and Kinland chassis made drive and control more comfortable.
"Several months after purchasing the first Yuchai-powered Dongfeng Kinland vehicle in August 2014, I got another one. With business expansion, I will choose Yuchai-powered Kinland coal transport vehicles in future update," said Zhang Sanhu, a customer of Dongfeng LNG coal transport vehicles.
Yin told the reporter that Xingtong sold over 100 Dongfeng LNG coal transport vehicles in less than four months from August 2014 to late 2014. "Thanks to the outstanding comprehensive performance of Yuchai LNG engines and the high comfort of Kinland chassis, we restored customers' trust in Dongfeng trucks in the era of diesel vehicles."