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When the reporter participated in Scania's new R series heavy truck press conference, he met the legendary “old Hoâ€â€”He Mochi: living in China for nearly 20 years, and then in 1994 at the Scania China office. The Swedes are currently the general manager of Scania Sales (China) Co., Ltd.
As the “China Connect†of the heavy truck industry, He Mochi has quite unique views on issues such as the heavy truck market in China, the global heavy truck market, and the development model of European companies such as Scania in China. So, the reporter and he made a dialogue.
China Industry News: This year, Scania seems to be very active in the Chinese market. First, the R series was introduced into China, and a brand building seminar was held. It is said that there are also national tour exhibitions and more marketing activities. Several events have been launched this year. What does this mean?
He Mochi: This shows that the focus of Scania's strategic development is shifting to the Chinese market, and the high-end demand for China's heavy truck market is rising.
Since 2009, Scania has started to adjust its business plans. In the past, the business focus of the company was entirely in the developed economy market dominated by Europe; now, the company has begun to attach importance to and focus on the development of an emerging economy market led by China. Recently, Scania introduced this newly developed R&D product representing the highest level of European heavy trucks in China. Although the high-end products in the Scania R series currently have limited capacity in the Chinese market, it has expanded the company's model lineage in China and has made the company's truck products in China more complete.
The change in the company's strategic focus is not only caused by the economic crisis that has occurred in the short term, but is also a result of the global heavy truck industry's development trend. Therefore, I think the future of the global heavy truck market is in China.
China Industry News: You mentioned that this year is a turning point in China’s heavy truck market. Can you elaborate further?
He Mochi: The so-called “China’s heavy truck market is a turning point in this yearâ€. It means that from this year onwards, China’s heavy truck market will enter the stage where the demand for low-end and high-end products turns to demand.
Undoubtedly, China's heavy-duty truck industry is currently ranked first in the world in terms of annual production and sales, and its market capacity is also the largest; however, it cannot be called the most important and most valuable market. The reason is that in China's heavy truck market, the absolute dominant position is still low-end models. However, our research results show that in the future, the demand for the Chinese heavy-duty truck market from low-end products to high-end products will be the fastest in the world.
From this year, the demand for high-end heavy trucks in China will increase at a rate of 1% per year; after eight years, the market share of high-end heavy trucks in China will reach 10% of the total heavy trucks.
The reason why Scania introduced the most high-end products to China is because in some markets in China, there has been a demand for high-end products that is no different from the European market. If marketing campaigns are in-depth, if some of our product ideas are accepted by Chinese users, the demand for high-end products will be released more.
According to sales figures, Scania's sales in China have been equivalent to last year's level from January to April this year. Did you say that it is time for the Chinese market to pay attention?
China Industry News: You mentioned "product idea". What does this mean?
He Mochi: These product ideas are exactly what Scania wants to promote to users. In simple terms, it is the concept of "tkm". "Ton-kilometer" is the attendance rate, which is synonymous with operational economy, reliability, safety and long service life.
We have always stressed that companies like Scania, which produce high-end products, sell not products, but commercial value. In the trucking industry, the commercial value is "tkm". In my opinion, in determining the main factors of car purchase, it is more meaningful to pay attention to the "ton-km" than to pay attention to the initial price of the vehicle.
How can the truck transport industry meet the requirements of energy conservation and environmental protection while also reducing the cost of the car? I think that paying close attention to "tkm" can achieve the harmony and unity of the two.
The low value of “tkm†means low fuel consumption and low emissions. Low fuel consumption means that the cost of vehicles is low, and less emissions means energy saving and environmental protection.
According to calculations, from the perspective of “tkmâ€, if a heavy truck drives 400,000 kilometers per year or more, high-end products should be included in the user’s range of vehicles.
China Industry News: Please tell us about the advantages of Scania Heavy Trucks in the Chinese market.
He Mochi: Scania is hailed as the king of highways. This shows from one aspect that the company's strength lies in long-distance road transport. I think that in the future, China's long-distance heavy-haul transportation will refine the route and subdivision models, and select different models on different routes. For example, from Shenzhen to Xinjiang, the total length of more than 4,000 kilometers, high-end road tractors have obvious advantages in this kind of ultra-long-distance transportation.
In the future, as China's foreign trade increases, and the length of international land transportation lines increases, the demand for high-end road tractors will also increase.
China Industry News: What is the cooperation between Scania and Higer? How do you see the "competition between the public railways"?
He Mochi: The cooperation with Hager Buses was very successful. This year we will also jointly export more than 300 high-end passenger cars.
After more than 100 years of development, Scania's operating principle is to do only the areas that it is familiar with. The cooperation with Higerbus is based on this principle. We do the chassis, Hagrid is responsible for the body, each director.
I think that the rapid construction of high-speed railways in various parts of China will not have a major impact on the passenger car industry. From the perspective of the development of the European passenger transport market, rail transit and road passenger transport complement each other. It is not a relationship between me and me.
China Industry News: Will Scania form a joint venture or cooperation with domestic companies?
He Mochi: For the issue of whether the Scania industry is concerned about the joint venture or cooperation with domestic companies, the company currently believes that only the Scania heavy vehicle sales in China will exceed 10,000 units a year before it needs to consider the issue of local production. .
Up to now, Scania has established 11 sales and service outlets in China, and will accelerate the network layout in the future, especially extending to inland areas.