[From Commercial Vehicle New Network]
In recent years, the truck industry has shifted from incremental competition to a game of resource allocation. The value of the aftermarket has become increasingly prominent. On July 26th, as a leading enterprise in the global power sector, Weichai, with its twenty years of in-depth exploration and profound accumulation, has launched a major upgrade of the W-TCO exclusive service, launching a powerful offensive towards the trillion-dollar-scale aftermarket.
The upgrade of Weichai's W-TCO model marks a comprehensive transformation of Weichai's aftermarket from "accessory sales" to "systematical services". W-TCO covers the entire life cycle of key components such as engines and transmission systems. By reducing maintenance costs, improving operational efficiency, and shortening downtime, it helps users minimize the total cost. This initiative not only vividly reflects the strategic upgrade of Weichai itself but also profoundly reflects the deep changes in the industry development.
Trillion-dollar market opportunity
The breakthrough solution in the battle of existing resources
With the development of the truck industry in our country, currently, domestic brand trucks have been able to match international excellent brands in terms of configuration and performance; however, we must also admit that, in the post-market service system, there is still a significant gap compared to developed countries.
Data shows that during the entire life cycle of a truck, the cost of vehicle purchase only accounts for 8% to 10%, while the remaining nearly 90% of the expenses are closely related to the post-market services. This means that the scale of the post-market is much larger than the vehicle sales system and is an important growth pole of the industry.
Nowadays, as the truck market enters the era of market saturation, industry competition intensifies, and truck users are increasingly sensitive to operating costs. The core contradiction of the industry has shifted to "the contradiction between service demand and the backward service system". At this time, who can create a complete service solution to enable customers to achieve the optimal TCO cost, who can take the initiative in the fierce market competition.
As a leading power equipment manufacturer, Weichai has keenly perceived this trend. Against the backdrop of customers' increasingly refined demands for cost optimization and service quality, Weichai has launched the W-TCO service in the aftermarket, which is not only an affirmative response to market demands but also a bold attempt to restructure the industry service system.
Twenty years of deep cultivation
Weichai has built a new value plateau
The layout in the aftermarket is not something that can be accomplished overnight. It requires a large customer base, a mature service network, and an integrated service solution. And Weichai happens to possess these core advantages.
In terms of customer base and service network, Weichai has already established a global leading position in the traditional power sector. The global engine inventory exceeds 6 million units, among which heavy-duty commercial vehicle diesel engines account for 41% of the market share, firmly ranking first in China. The market share of natural gas heavy-duty truck engines even reaches 70%. At the same time, Weichai has over 5,000 maintenance service stations, 80 central warehouses, tens of thousands of parts suppliers, and numerous dealer teams in China. It has already built a powerful service system, laying an extremely solid foundation for the expansion of the aftermarket.
In terms of early planning and team building, as early as 2005, when the industry was still in a state of confusion regarding the concept of the aftermarket, Weichai had already taken the lead in making such arrangements. Over the past two decades, Weichai has continuously explored and innovated. By upgrading from the transfer warehouse model to the regional dealer agency model, it has actively expanded the remanufacturing business, strengthened oil product technology research and development, utilized the Internet to connect online and offline channels, pioneered the "No Red Envelopes, Non-Original Products" project, launched the "Weichai Fellow" APP, and other means, it has established a comprehensive and professional aftermarket channel support system.
It is worth noting that the aftermarket business of the Weichai engine division has achieved a compound growth rate of nearly 30%. The annual revenue of the Jinan Rui'an Center Warehouse, which started alongside us, increased from 3 million yuan to 200 million yuan, and the ten-year revenue of the Taizhou Jiaojiang Xianghui Center Warehouse increased by more than 10 times... These growth figures are powerful evidence of Weichai's symbiotic and mutually beneficial cooperation with its partners, and have also united Weichai with numerous dealers and center warehouses into a single force.
Of course, apart from the domestic market, in terms of global expansion, Weichai will rely on the over 1 million engines in its overseas fleet to promote the overseas expansion of center warehouses, build a complete sales network, and take a series of measures to continuously enhance the international influence of "Weichai Aftermarket", opening up broader market space for its partners.
Commercial Vehicle News Media believes that over the past two decades, Weichai has conducted in-depth research and exploration in the aftermarket sector. Through the introduction of a series of measures, the establishment of a system, and the cultivation of customer habits, it has gradually promoted the upgrade of the aftermarket from "fragmented services" to "systematic services". At the same time, for the industry, this initiative will accelerate the maturity of the aftermarket service system and drive more industries to develop towards the high-end direction of "manufacturing + services". For customers, better and more efficient services will directly translate into tangible operational benefits.
For Weichai itself, the curtain has already been raised to deeply explore the trillion-dollar "rich mine" of the aftermarket. This will not only become a new growth point for Weichai, but also an important strategic fulcrum to consolidate its global leadership position in power.