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Affected by the rise in steel prices, Changan recently raised the price of light trucks. Starting from the 1st of this month, seven mainstream commercial vehicle companies in China have followed suit collectively and raised their light truck prices. Interestingly, the price of heavy trucks, which are also affected by steel prices, has been “stabilizedâ€.
Rapid increase in truck costs
Chang’an announced that it had begun to increase prices across its line of light trucks represented by “Chang'an Golden Leopard†with a maximum increase of RMB 1,000. This is contrary to the current trend of lower prices for cars, causing widespread concern.
Chang’an straddling this move was mainly affected by the increase in steel prices. The reporter learned from the Chongqing Automobile Research Institute, which is devoted to heavy-duty vehicle research, that the unit price of Chongqing's automotive steel has risen by an average of 2,000 yuan in the past year. 80% of the truck's weight requires steel. Two tons of light trucks increase costs by 3,000 yuan.
From April 1, seven mainstream commercial vehicle companies in China have raised their light truck prices by 2%%-5%%, and the amount is about 1000-4000 yuan. The seven companies are Jianghuai, Futian, Dongfeng, Yuejin, FAW Harbin, FAW Hongta, and Jinbei.
Heavy truck merchants cautiously increase prices
Light truck price increases, heavy trucks will rise? In fact, a heavy truck with a self-respecting weight of 10 tons will increase its cost by about 15,000 yuan because of the increase in steel prices.
Unexpectedly, heavy truck merchants do not arbitrarily raise prices. Dongfeng's dealers in Chongqing told reporters that they have not yet received the "order" from the manufacturers and that they are still implementing the prices since the end of last year. When the reporter mentioned this matter, there were few words. Liberated dealers also said that they did not receive any of the above, saying that the price increase was still just a rumor.
Among the local heavy-duty truck manufacturers in Chongqing, Hongyan people said that they did not hear it, and the spokesperson of Chongqing Qingling News affirmed that they would not increase prices. They only said that under the current situation that the cost price of steel products has risen, some manufacturers have taken the path of price wars. Nothing worked.
It is said that at the beginning of last year's steel price hike, Chongqing car companies began to brewing price increases, but due to fierce market competition, did not dare to move lightly. The industry believes that Chongqing manufacturers do not arbitrarily raise prices because they are afraid of a single player. They are in a dilemma.
Heavy truck will not increase prices?
Dr. Ma Mingtu, a professor at the Chongqing Automobile Research Institute, believes that the profit base of heavy trucks and light trucks is not the same, and the profits of heavy trucks and cars are higher than that of light trucks. After light trucks have competed in the market in recent years, profits have been thin. Therefore, light trucks will not be able to withstand the first shock when the cost rises dramatically.