Top Ten News of 2016 Commercial Vehicle Industry Are You Affected?

In recent years, the overloading of the road transport industry in China and the illegal refitting of transport vehicles have intensified, and it has reached a point where great efforts must be made.

In August 2016, relevant departments of the State issued the "Opinions on Further Improving the Illegal Refitting of Freight Cars and Over-limit Overloading Treatment" and other documents.

The large-scale ultra-super cure nationwide will be implemented from September 21, 2016 and will end on August 31, 2017.

In the key remediation phase, local transportation and public security agencies organized special forces to carry out special rectification and severely investigate and deal with violations such as truck overloading and overloading.

In this Super Operation, the overload limit of the overloaded trucks was reduced. The biggest change was that the total cargo weight of the 6-axis trucks was changed from 55 tons to 49 tons. In other words, the user needs to reduce the cargo load of the vehicles to legally enter the road. . In addition, from September 21, double-row carriages are prohibited from entering the road.

The law enforcement standards of the transportation and public security agencies shall be unified, and the maximum allowable total mass limit specified in “External Dimensions, Axle Loads, and Quality Limits for Automobiles, Trailers, and Automobile Trains” (GB1589-2016) must be strictly observed to determine the total weight of vehicle cargo. Is it overloaded?

In addition, for the two-axle trucks, the total weight of the goods should not exceed the total mass indicated on the driving permit, so as to prevent overloading of the vehicles such as light trucks and micro-cards.

At the same time, strict implementation of "one extra four penalties", that is not only the driver of overloaded trucks will be fined, fine points; the carrier, loading companies and freight companies must also be punished.

In addition, this special action will eliminate a batch of illegal overruns and modified vehicles, thereby improving road safety.

In the long run, the goods that can be transported by one vehicle in the past now require more vehicles, and the market demand for trucks has increased. The sales growth of the heavy truck market in November and December 2016 has already been reflected.

04 heavy truck market bottomed out <br> <br> based on sales data from China Association of Automobile Manufacturers, domestic heavy truck market from August 2014 to January 2016, monthly sales are falling year on year.

In February 2016, sales volume in the domestic heavy truck market increased by 16% year-on-year. After a consecutive 18-month decline, it finally achieved growth for the first time. However, in the following months, sales in the heavy truck market remained at a low level.

Entering the fourth quarter, China's heavy truck market sales rose. In October, the sales volume in the domestic heavy truck market was approximately 67,400 vehicles, a substantial increase of 49% year-on-year and a month-on-month increase of 27%.

The sales of 88,000 vehicles in November set a new record for sales in November. Previously, the historical high sales volume of the heavy truck market in November was still in 2010. In November of that year, the sales volume was 80,800 vehicles.

The blowout of the heavy truck market in the fourth quarter was the result of the superposition of multiple positive factors.

First, the implementation of the GB1589-2016 new national standard requires that the gross weight of 6×2 tractors be reduced from 55 tons to 46 tons, which is a reduction of 3 tons compared to the total weight of 49 tons of 6×4 tractors, thus losing economic advantages. Factors promote a large number of users to replace existing 6×2 tractors with 6×4 tractors;

Secondly, the rule-breaking of the New Deal led to a decline in the number of bicycles in the country, and there was a gap in road capacity. The market demand for trucks also increased. According to the rules of the market, once the entire market owner needs more vehicles than the number of trucks, and the demand exceeds supply, the freight rate will increase.

In the past two months, the price of roads in various regions has generally increased by 10% to 30%, which has attracted a lot of heavy-duty truck users to change cars or to purchase new vehicles to meet the gap in capacity requirements;

Third, the coal market's inventory replenishment and capacity shortage in the fourth quarter, coupled with the huge increase in the demand for "double 11" e-commerce express transportation capacity, multiple factors superimposed, and the overall market for heavy trucks formed a bottoming-out situation.

Since the 05 pilot lifted <br> <br> pickup into the city for many years, the city limit pickups topic is always mentioned, due to the pickup in the country is defined as light trucks, subject to many limitations in the daily travel, resulting in sales of domestic pickup market It has been maintained at around 300,000 vehicles, and the maximum peak is only 400,000. The purchasing power of domestic potential pickup trucks has not been released.

In February 2016, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Public Security jointly issued the “Notice on Relaxation of Pilots in Pilot Cities to Restrict Congestion and Promote the Consumption of Pickup Trucks”, which states that:

In order to eliminate various obstacles that are not conducive to expanding consumption, develop new consumption patterns, promote the upgrading of consumption structures, and stimulate urban and rural pickup truck consumption, it has decided to expand the pilot projects for the restriction of pickup trucks into cities in Hebei, Liaoning, Henan, and Yunnan.

Selecting some provinces to expand the restrictions on pick-up trucks entering the city will not only help expand the consumption of pick-up trucks, promote the development of the automobile industry and related service industries, but also facilitate the promotion of innovative transport management and modern logistics models by relevant urban departments and optimize the allocation of urban transport resources.

On the other hand, at present, the pickup trucks are mostly concentrated in first and second-tier cities, and pilots are implemented in Hebei, Liaoning, Henan, and Yunnan provinces, which are mainly three- and four-tier cities. In the future, pickup trucks can change the passage time and road sections compared to before. Not too much. Therefore, whether there will be greater growth in the pickup market in the future and whether the lifting of the ban on the ban will require continued attention.

06 new energy vehicles to subsidize the introduction of the New Deal to be <br> <br> countries to give financial subsidies for new energy vehicles, in order to support and promote the development of new energy vehicles in China, but some companies use improper means to obtain subsidies, resulting in artificially high sales . In particular, the "peak value of production value" in the history of new energy vehicles will usher in 2015.

This is partly due to the fact that in 2016 the national financial subsidy policy started the slope-retreat mechanism. In order to catch up with the high subsidy last bus in 2015, some auto companies concocted high sales volume, leading to the so-called “blowout” in the market in the last two months of 2015.

At the end of 2015, sales of new energy vehicles exploded, reaching 177,000 units. The rapid growth caused the relevant management departments to be vigilant. Afterwards, the news about the car companies' swindling came to the surface. By the end of 2015, the subsidies provided by the central government have totaled 33.435 billion yuan.

In early 2016, the Ministry of Finance organized the investigation of the new energy vehicle market and suspended the issuance of new energy subsidies in 2015. In September 2016, five new energy bus companies were notified and punished for fraudulent compensation.

Bus companies subsidize purchases on behalf of consumers on behalf of consumers, and companies use mobile funds for advance payment. The subsidies for new energy buses in 2015 have not been honored, which has caused some new energy bus companies to face financial constraints. The inadequacy of funds brings greater risks to companies, making it difficult for enterprises to rationally plan annual production.

Therefore, in the first 10 months of 2016, the development of the pure electric passenger car market has been unsteady. In July and October, sales volume has dropped by a year-on-year, which is a drop of more than 40%.

Before November, the domestic plug-in hybrid bus market had dropped 6 consecutively. May-to-October was a year-on-year decline. The largest drop in sales occurred in May, a drop of 66% year-on-year.

However, in December, new energy commercial vehicle companies received good news. In 2015, new energy vehicle national subsidies began to be issued.

07 The Appraisal Standard for Second-hand Commercial Vehicles Transaction was published In October 2016, the group standard of China Automobile Dealers Association, "Technical Code for the Evaluation and Appraisal of Used Medium-Duty Heavy Duty Trucks" (hereinafter abbreviated as Standard) was formally issued and will begin on March 1, 2017. Started.

The issuance of this standard will end the unacceptable situation in the evaluation of second-hand commercial vehicles during the transaction process, and will play an important role in the development of the circulation of used commercial vehicles.

According to statistics released by the National Bureau of Statistics, the total vehicle ownership in China reached 160 million in 2015, and 67.65 million commercial vehicles accounted for 41% of the total. Among them, the trading volume of second-hand commercial vehicles in 2015 accounted for 23.83% of the total used-car trade volume.

It can be seen that the difference between the ratio of used commercial vehicle transactions and commercial vehicle ownership is very large. One important reason is the lack of transaction evaluation standards.

With the upgrading of vehicle emission standards, the volume of used commercial vehicles has grown rapidly. When large domestic backbone enterprises dispose of used commercial vehicles, there is no standard to comply with, which leads to difficulties in the transaction process. For example, if the disposal price is too low, the state-owned assets will be lost; the disposal price will be too high and the market will not recognize it.

The domestic market for used commercial vehicles has undergone frequent changes in recent years, and prices have been confusing. The phenomenon of one vehicle, one price, one price, and one price often appears, which seriously restricts the healthy development of the secondary commercial vehicle market.

The content of the standard includes the depreciation rate of the vehicle involved in the entire assessment process to solve the problem of differentiating the same car at different times, different regions, and different functions. The introduction of the standard will help change the current opaque market information for second-hand commercial vehicles.

08 Dong Mingzhu repairer <br> <br> twists and turns from the beginning of February 2016, revealed plans to acquire Zhuhai Gree Silver Lung. On August 19, Gree Electric announced the acquisition plan, announcing that it plans to issue a share purchase of 100% equity in Zhuhai Yinlong at a price of RMB 13 billion;

After the acquisition is completed, Zhuhai Yinlong will become a wholly-owned subsidiary of Gree Electric, and Gree Electric will quickly enter the new energy electric vehicle and energy storage business through the core technology of lithium titanate batteries that Zhuhai Yinlong has mastered.

However, after the program was released, the voice of doubt continued. On October 18, 2016, the Zhuhai SASAC issued a notice to the Gree Group's board of directors and removed the duties of chairman, director, and legal representative of Dongming Zhu Gree Group. Dong Mingzhu only retained Gree Electric's chairman, president and legal representative.

At the end of October, Gree’s Extraordinary General Meeting of Shareholders rejected the overall plan to acquire Yinlong and raise funds. Gree Electric subsequently issued an announcement admitting that the relevant laws regarding the issuance of shares to purchase assets had not been approved as a whole, indicating that it planned to continue to promote the issue of assets for the issuance of shares, and to reduce or cancel the supporting raised funds.

The optimized and adjusted plan will be resubmitted to the board of directors and the general meeting for deliberation, and the date of the announcement of the resolution of the board of directors will be taken as the reference date for issuing the price. However, the optimized and adjusted plan has not yet been made public, and the reorganizing party has already “satisfied”.

On November 16, Zhuhai Yinlong issued a letter informing Gree that the adjusted trading plan had not been approved by the Zhuhai Yinlong shareholders' meeting. Zhuhai Yinlong decided to terminate the transaction based on the voting results. Gree Electric Appliances decided to terminate the plan to issue shares to purchase assets.

On December 15, Dong Mingzhu joined hands with Dalian Wanda Group, Jingdong, CIMC and Zhuhai Yinlong in their personal names to sign a capital increase agreement and plans to jointly increase capital by 3 billion yuan and obtain a 22.388% stake in Zhuhai Yinlong.

At this point, although Dong Mingzhu failed to achieve the purpose of wholly-owned acquisition of Yinlong, it has finally entered the field of construction. In the future, Dong Mingzhu's promising development in Zhuhai Yinlong will require time to prove.

09 Disputes on “Safety Technical Conditions for Electric Buses (Consultation Draft)”

In June 2016, the "Technical Conditions for Safety of Electric Buses" led by the Ministry of Industry and Information Technology (Draft for Soliciting Opinions) was announced. It has established evaluation and test standards for electric buses and other three-electric systems, which is conducive to improving the technical level of electric buses and makes the industry feel that electric buses will soon have standards.

However, one of the regulations requires that an electric bus of 6 meters or more in "the whole vehicle should be a full load-carrying monolithic skeleton structure", causing much controversy in the industry.

There are two main body structures in the domestic passenger car industry. One is a full-load monolithic skeleton structure, and the other is a stamped body structure. These are two different forms of technology. In terms of security, there is no difference between the two.

Large passenger cars have the characteristics of “small batches and many varieties”. Therefore, the production mode with full load-carrying skeleton structure is more suitable for large passenger cars. For medium- and light-duty passenger cars, especially for buses of 6 to 8 meters, due to the large demand, they are more suitable for batch-type, standardized, and highly efficient stamping production methods. Lightweight passenger companies in China and the world generally adopt stamping production methods.

If electric buses of 6 meters or more can only use the monolithic skeleton structure, light passenger companies have to abandon their original production lines and build new production lines to produce a product that meets this standard. This will cause huge waste of resources. If this provision is put into effect, domestic light passenger companies will be greatly impacted.

What is gratifying is that during the consultation period, the Ministry of Industry and Information Technology fully considered the proposal of the company. In November, the “Technical Conditions for Safety of Electric Buses” officially released in the Ministry of Industry and Information Technology has eliminated the controversial requirement that the “whole vehicle should be a fully loaded monolithic skeleton structure”. .

10 Leaping into South Veeco on Leap Forward On December 16, 2016, SAIC and Iveco issued a joint statement saying that in response to the rapid development of China's commercial vehicle market, the two sides will restructure the joint venture in China based on mutual understanding and trust.

Nanjing Iveco, a 50:50 equal investment by SAIC and Iveco, will focus on the Iveco brand in the future. Yuejin brand business will be separated from Nanjing Iveco.

At the same time, SAIC Datong and Nanjing Iveco will jointly sign the “Business Transfer and Assets and Liabilities M&A Agreement” to inject the leap forward business into SAIC Chase.

In recent years, the Chinese auto market has faced the challenges and opportunities brought about by economic restructuring and structural adjustment while maintaining rapid development.

SAIC and Iveco based on their long-term cooperation and mutual trust to actively communicate and optimize their respective development strategies and adjust their development strategies in the commercial vehicle market.

The adjustment of Yuejin's business will help the two parties to gather resources, concentrate their efforts on the two brands of Yuejin and IVECO, and accelerate the development of the brand.

The Yuejin business will be integrated into the commercial vehicle business system under the unified leadership of SAIC Group. The overall planning and layout will be coordinated, and the overall resources will be synergistic and exert scale effect.

For SAIC, the integration of Yuejin brand is an important layout of the Group’s “13th Five-Year” development plan in the commercial vehicle segment, which will promote the improvement of commercial vehicle product lines, accelerate the integration of resources, and promote the realization of commercial vehicle business goals by 2020, reflecting SAIC Motor’s The Group has made its own brand bigger and stronger, and has made a great leap forward.

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