SAIC-IVECO Hongyan: Flexible Operation in Sluggish Market

Hongyan used to assign one team to do all the work for one specific vehicle mode. However, nowadays, it is difficult to subdivide the market for different vehicles. Three business divisions have been established within Hongyan this year, namely, engineering vehicle division, highway vehicle division and SPV division. With further subdivision of the three parts, corresponded staff will be handling the assigned division. This move has contributed to a better understanding of the customers and the market.

Additionally, Hongyan require the sales staff to station in the shop to fix their disconnection between the market and dealers. This will help the information of customers be transferred to the dealers as soon as possible for an efficient communication and feedback. Meanwhile, the highlight and idea of new products can be told to the dealers correctly to promote sales. “Differentiated Authorization” is also carried out to the dealers at relatively mature regions.

Enriched Production Line

Besides systematic transformation on sales, Hongyan has enlarged its products to enrich the product structure. GENLYON M100 was released at the Beijing Auto Show this earlier this year. Sales grew rapidly after its launch, 5,000 M100 were sold at the first half of 2012. GENLYON C13, which was launched at the time with M100, will be put into mess production in November and be supplied to the market in large quantity.

After M100 and C13, two new models will be launched at the end of 2012.One is GENLYON LNG tractor, which will be released in December. As known to all, increasing oil price only add insult on the already bleak market, therefore, more and more attention was paid to LNG vehicles. LNG commercial vehicles are heated choice this year, especially in the heavy truck market. Though Hongyan is not the first company to release LNG heavy truck, it has been developing the market at a very early stage. The LNG vehicle from Hongyan is adaptable and it has GENLYON, which is an already mature product, as a platform.

The other model is the upcoming wide-body dumper. Presently, dumpers at 40t~60t tonnage are the main choices at key mining areas. Transportation costs and efficiency are the biggest concern for customers; therefore, vehicles with larger tonnage capacity are the trend in the market. Hongyan’s upcoming wide body dumpers are of 70t tonnage capacity and will be the dumper with the largest tonnage in domestic market. It is expected that the new dumper will be of great market potential. 

Export Will Be the New Growth Point

A growth of 2,000 Hongyan vehicles will be exported this year, an 800 unit’s growth compared with last year. 150% growth has made Hongyan the highlighted products in total sales. 

The outstanding performance of Hongyan in export is directly contributed by the efforts put into the overseas market. Foreign business offices have been established in 8 major cities. With more offices being set up and the gradual growth of overseas network, Hongyan takes the advantage of IVECO sales to pave the way for the sales this year. It is learned that, products of Hongyan have been exported to more than 30 countries and regions, including the Middle East, Africa and South East. GENLYON, Old KingKong and New KingKong are among the well received export products.