"China's first Beibei No.2 truck, producing the Beijing 130 light trucks, went bankrupt." Although the domestic auto industry after the "WTO" became extremely competitive, it's normal for auto companies to "live and die." However, watching this news online stirred deep emotions that lingered for a long time. My thoughts drifted back to my youth over a decade ago. How many dreams can be repeated? In the early 1990s, China National Automobile Industry Corporation commissioned the China Automotive Technology and Research Center to lead the compilation of the development history of the domestic automobile industry. The preparation of the history of the domestic light truck industry was led by the second-largest automobile manufacturer in Beijing, joined by three other companies: Tianjin Automobile Manufacturing Plant, Nanjing Automobile Manufacturing Plant, and Shenyang Jinbei Automobile Manufacturing Plant. As a representative of the Tianjin Automobile Manufacturing Plant, I participated in the preparation of the history of the development of China’s light vehicle industry for three years, researching historical data and envisioning future development. We traveled across more than 20 light truck enterprises in China.
In July 1995, the book “History of the Development of China's Light Vehicle Industry†was officially published by the National Machinery Industry Press. The top four manufacturers—Beijing Second Automobile Factory, Tianjin Automobile Manufacturing Plant, Nanjing Automobile Manufacturing Plant, and Shenyang Jinbei Automobile—were collectively called "the four kings" in the history of the domestic light truck industry. Looking back on this period is not just about commemorating unforgettable history but also showing future generations that China's light truck industry has always been full of wisdom and ability. China's light truck industry was the first to build brilliance!
First, the "four great kings" of the past achieved a brilliant history in China's light goods vehicles.
1. **Beijing No. 2 Automobile Factory**
The predecessor of Beijing No. 2 Automobile Manufacturing Plant was the Beijing Diesel Vehicle Repair Sub-factory, founded in 1956. In 1959-1960, the first mini-car in China was trial-produced in small batches. Two Beijing 130 light-duty trucks were trial-produced in 1966 and put into small-batch production in 1968. In 1975, the Beijing 130 passed the steadfastness test organized by the Ministry of Industry and was classified as a state-quality product, filling the gap in the domestic market for 2-ton light trucks. It competed with over 20 automakers across the country. In 1976, the plant was renamed Beijing No. 2 Automobile Factory. In 1978, the Beijing 130 light truck and exhaust muffler won the National Science Conference Award. In 1985, Beierqi introduced Japan's Isuzu N series technology and produced Beijing 136 (Beijing 1041). In 1988, it passed national technical appraisal. To speed up technology introduction and product replacement, in April 1988, Beijing No. 2 Automobile Manufacturing Plant invested with China International Trust & Investment Corporation and Hong Kong Xiaodike Automobile Company to establish Beijing Light Vehicle Co., Ltd., with a 70% stake.
Over time, Beibei faced challenges due to aging products, weak R&D, and outdated technology. With the development of the market economy, the company failed to adjust its product structure and operating mechanism, leading to losses for over a decade. Currently, there are over 400 registered employees and more than 1,200 retired staff. The company has been in a shutdown state for over three years, with employee expenses borne by Beiqi Holding. As of October this year, Beierqi's total assets were only 85.49 million yuan, while liabilities exceeded 140 million yuan, with an asset-liability ratio of 172.79%. Unable to repay mature debts, it met the legal conditions for bankruptcy. On November 18, the Beijing No. 1 Intermediate People's Court issued a civil ruling, announcing the bankruptcy of Beijing No. 2 Automobile Manufacturing Plant. At this point, Beixhuang officially entered bankruptcy proceedings.
2. **Tianjin Automobile Factory**
The predecessor of the Tianjin Automobile Manufacturing Plant was the Tianjin Transportation Company Automobile Repairing Plant, established in 1965. It had trial production of the TJ210 light sport utility vehicle and the TJ740 sedan. In 1978, it was renamed the Tianjin Automobile Factory and became known as the cradle of Tianjin's automobile industry. In 1978, the factory changed its product direction, referencing the Beijing 130 drawings to launch light trucks. It took the lead in developing double-row seat light trucks for major cities, creating a new world of light trucks in large cities.
During the "Seventh Five-Year Plan," the Tianjin Automobile Manufacturing Plant carried out technological transformation of the Tianjin Automobile Die Design and Manufacturing Center (Phase I). In 1988, it signed a contract with British MGA Corporation and Japanese Miyazu Production Center in Tianjin for the TJ1041 light truck body change. By the end of the "Seventh Five-Year Plan," the European-style TJ1041 light truck had an annual production capacity of 30,000 units. During the "Eighth Five-Year Plan," the key project was the technological transformation of the Tianjin Automotive Die Design and Manufacturing Center (Phase II) and the technical transformation of the Tianjin Dafa microcar project. By the end of the "Eighth Five-Year Plan," the Tianjin Automobile Manufacturing Plant had an annual production capacity of 70,000 light trucks.
In 1995, the Tianjin Automobile Manufacturing Plant formed a joint venture with the Malaysian Golden Lion Group, renaming the company to Tianjin Huali Automobile Co., Ltd., shifting from Yanqi light trucks to Huali brand microcars. In 2002, under the "Tianyi Reorganization" program, it was assigned to FAW Group, renamed FAW Huali (Tianjin) Automobile Co., Ltd., and shifted to FAW Jiaxing and Tak Road models. The sharp urban jeep completely retreated from the domestic light truck market.
3. **Nanjing Automobile Factory**
Nanjing Automobile Factory has a glorious and long history. Its predecessor was a repair shop of the special column of the East China Field Army of the Chinese People's Liberation Army, established in 1947. In 1958, it produced a 2.5-ton cargo truck NJ130 and was renamed the Nanjing Automobile Manufacturing Plant by the First Machinery Industry Ministry, becoming the second automobile factory in China after the first. In the 70-80s, Yuejin Light Trucks became the most competitive vehicle in the country. In 1982, the Nanjing Automotive Industry Joint Venture, a joint venture of 107 associate manufacturers and over 200 cooperative supporting plants, led by Yuejin Light Trucks and Nanjing Automobile Manufacturing Plant, was formally established.
In 1986, the Nanjing Automobile Manufacturing Factory introduced the design and manufacturing technology of the S-series light vehicle of Fiat Iveco, marking its second venture. It was the largest cooperative project in the Sino-Italian technical cooperation program with a total investment of 1.45 billion yuan. The design program aimed to increase the annual output of 60,000 Iveco light vehicles and 75,000 Sophim engines, listed as the "Seventh Five-Year Plan" project. By the end of the "Eighth Five-Year Plan," the Nanjing Automobile Manufacturing Plant had an annual production capacity of 100,000 light trucks.
Iveco light vehicles were originally used for both passenger and cargo, but due to price factors, Nanjing Iveco light trucks were not widely accepted. Instead, Nanjing Iveco light buses became popular. Relying solely on aging products, the market share of the Nanjing Automobile Manufacturing Plant declined year by year, and the main body of the Nanjing Automobile Group still needed to rely on light trucks to survive, with increasingly difficult situations.
4. **Shenyang Automobile Manufacturing Plant**
Shenyang Automobile Manufacturing Plant was the first automobile manufacturing plant in Liaoning Province, established by the Liaoning Provincial Government during the second five-year plan in 1958. From 1958-1962, it modeled the Dragon brand 2.5-ton car on the Soviet Muse 51 Type. In September 1973, according to the national light vehicle production plan, it developed the cab in-house based on Beijing 130 drawings and assembly design. In 1977, the SY132 light-duty truck was produced. By 1980, it had basically formed an annual production capacity of 3,000 light-duty trucks. In 1983, after approval from the Shenyang City Government, the Shenyang Second Tractor Factory was incorporated into the Shenyang Automobile Manufacturing Plant. After technological transformation, the comprehensive production capacity doubled.
In 1984, the "Seventh Five-Year Plan" technology upgrading project of Shenyang SY132 light truck series was replaced by the national "Seventh Five-Year Plan" development plan. In 1986, the Shenyang Automobile Manufacturing Plant signed an agreement with Mitsubishi Motors Corporation of Japan to introduce Mitsubishi FC3 cab manufacturing technology and equipment. In 1987, it used the CKD mode to assemble and manufacture SY134C diesel and gasoline engine light-duty trucks, named Jinbei brand, and passed national technical appraisal in 1988, becoming one of the best-selling varieties in the domestic light truck market in the early 1990s.
In March 1988, with the approval of the Shenyang Municipal Government, Shenyang Automotive Industry Co., Ltd., mainly composed of a Shenyang automobile manufacturing plant and a Shenyang sedan manufacturing plant, was converted into a share company. Jinbei Automobile Co., Ltd. was established with a registered capital of 1 billion yuan. At that time, it was the first large-scale equity industrial enterprise in China with multiple economic components coexisting. In 1988, Jinbei Automobile Co., Ltd. issued a stock of 100 million yuan to the public and was listed on the Shanghai Stock Exchange in 1991, becoming the "first person" of Chinese auto companies entering the capital market.
After undergoing major changes in Brilliance Capital and personnel, Shenyang Automobile Manufacturing Plant, which originally served as the "main force" in Jinbei Automobile Stock Co., Ltd., gradually gave way to Jinbei Haishi Van and Zhonghua Sedan. Lacking funds and technology as support, the Shenyang lightweight truck manufacturing industry is no longer "enterprising" and is in a state of reluctance to maintain. Although it is in production and sales, the current domestic market ranking of light trucks has fallen by 10 players.
Analysis of the reasons why the top four domestic light trucks fell from the peak of glory to the trough over the past decade shows that they all have one thing in common: They all had a glorious history. At that time, they were all local pillar industries and strong companies. In the structure and upgrading of local automobile products, they often played a "tragedy" role. The major assets, profits, and technical forces of the four major light truck companies were taken away and put into the new products of passenger vehicles for transformation. "Weak disease and disabled," even if the transformation is a passive measure, the four large light truck companies will eventually become "outloaded" and even "bankrupt" after barely maintaining for a period of time.
Second, the current "two strong hegemony" leads the industry into a new era.
Only after a decade has passed, the domestic light truck industry has undergone tremendous changes. The former industry leaders have lost all of their advantages and lost their position in the industry. They have fallen from the pinnacle of unlimited scenery to the bottom of the valley. "The Yangtze River pushes the waves after the wave and the generation is stronger than the previous generation." At present, the domestic light truck industry has undergone earth-shaking changes. With the assistance of the capital market, the "small-scale generations" of Beijing Foton Motor Co., Ltd. and Anhui Jianghuai Automobile Co., Ltd. have been able to become bigger and stronger. At present, they have formed the trend of "two strong hegemony." Together occupying half of the domestic light truck industry, the domestic light truck industry has entered a new era.
1. **Beijing Foton Motor Co., Ltd.**
The predecessor of Beijing Foton Motor Co., Ltd. is an agricultural vehicle factory in Zhucheng, Shandong Province. Through effective asset restructuring of Beijing's abundant light truck resources, light trucks are used as an entry point into the auto industry, relying on a sound corporate governance structure, taking the road of technological innovation, market innovation, mechanism innovation, and management innovation, it has achieved unprecedented rapid development and created countless miracles in just nine years. In November 2004, Foton Motor’s 1 millionth vehicle went offline, and in 1, the vehicle has created the fastest growing record in the production and sales of the Chinese automotive industry. Fukuda's era light truck ranks first in China's auto sales ranking for six consecutive years in the truck industry, becoming China's first light truck and the highest market share in Foton. Listed as one of China's top 100 listed companies by Fortune magazine and one of China's top 50 listed companies with development potential; in 2005, Foton ranked the "Top 50 Most Valuable Chinese Brands" with a brand value of 11.932 billion yuan. In April 30th, Foton Motors was awarded the title of “My Favorite Chinese Brand†by CCTV2005. Futian is the only commercial vehicle brand and the “China Commercial Vehicle First Brand†has since rang; July 19, 2009, the “Futian Index†published by the Chinese people on the quality of life of motorized vehicles was released. This is China’s first index that reveals the relevance of motor vehicles and people’s lives. This reflects Futian’s high sense of social responsibility and shows that Futian has built a harmonious society and improved the people's mobile life. At present, Foton Motor has developed into the most complete and largest commercial vehicle manufacturer in China.
In 2005, Foton Motors continued to maintain its dominant position in the domestic light truck market. On March 26th, 2005, Foton Corporation announced to the media at the Diaoyutai State Guesthouse in Beijing that the new Olympian series—beyond light trucks, MRT light trucks, and zippipka—has been listed in major cities such as Beijing, Shanghai, and Chengdu. Compared with the listing of many cars, the listing of Olympian commercial vehicles does not seem to attract more attention. However, the industry is well aware that the listing of Olympian brings about a revolution in Chinese light vehicles. Variety. The essence of this revolutionary change lies in the fact that the Olympian products have broken through the existing Japanese Isuzu product technology platform in the domestic light truck market and made major technological innovations in the “1+36†project in terms of safety applications. Many of these technologies are domestic first. After 40 years of self-development of China's first light-duty vehicle, after a difficult exploration and relentless pursuit, Foton has once again successfully developed a new generation of light-duty vehicles and taken the lead in realizing the replacement of domestic light-duty trucks. The upgrade further defended Foton Motor’s dominance in the domestic light truck industry. From January to October this year, Foton's light trucks sold 227,300 units, ranking 3rd in the industry with a market share of 37%.
2. **Anhui Jianghuai Automobile Co., Ltd.**
Anhui Jianghuai Automobile Co., Ltd. is a rising star in the domestic commercial vehicle market in recent years. On November 21 this year, the influential China's mainstream media auto alliance in the industry and abroad published the “2005 China’s Annual Auto List†in Guangzhou. "Disclosed, JAC Trucks won the "Best Commercial Vehicle (Logistics) of the Year".
In the first ten months of this year, Jianghuai light trucks ranked the second in the domestic light truck industry with a sales volume of 61,302 units. At the same time, the product line of the JAC light trucks was fully expanded and the export volume remained the highest in the country for five consecutive years.
At present, Jianghuai Weiling Bell, Kang Ling, Jun Ma, Shuai Ling light trucks have covered the low-end light trucks to high-end light trucks, from the narrow body to the wide body of the full range of products. At the same time, JAC has adopted five unique designs in its series of light-card products. For example, JAC Shuai Ling, who currently leads the high-end light truck market, includes a number of industry-leading design factors. Stylish crystal headlights, comfortable interiors, classic Mahogany dashboard, and easy-to-control air conditioning system. These car-oriented designs have changed the monotonous feeling that people used to have. In addition, Shuai Ling has also introduced metal anti-rust paint body design, stainless steel wheel cover design, advanced power and steering system design, and fog-light front bumper design. Due to the adoption of lean production management and cost control, the cost-effectiveness of JAC light trucks has a very high advantage in similar products. The full range of products helps users achieve procurement according to actual needs, and cost-effectively reduces the cost of buying cars for users.
In 2005, the prices of domestic raw materials rose sharply, the manufacturing costs of light trucks rose generally, and the profits of light truck manufacturers fell sharply. However, the profits of Jianghuai Automobile rose in a contrarian direction. The company’s profits in the first three quarters increased by more than 50% year-on-year, becoming one of the few companies in the automotive industry that has seen significant growth in profits. While further improving its product line expansion, Jianghuai Light Trucks also carried out a comprehensive construction of its service system to create value-added services for customers and realize its value-marketing concept. The intensive management model centered on customers has become the main reason for the continuous success of JAC light trucks in the market.
It is no accident that Foton Motors and JAC were able to compete in the fierce competition in the domestic light truck market. It was no accident. Relying on the strong capital advantages of the parent company and the abundant truck resources inside the company, Foton and JAC light trucks are not only on the market "Right and left," and the Vietnam War is stronger.
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