Yan Ping: Business Slump Calls for Rational Strategies
03 April 2013
www.chinbuses.org : The year of 2012 turned out to be not as satisfactory as expected for Yuchai and Yan Ping, the president, with the annual sales number grown by 3% instead of 7%, which is the original target.
In recent 10 years, Yuchai witnessed over 30% of annual growth, facing the slump, Yan Ping is confident, saying Yuchai is prepared.
Engine is the key factor in the diversified business strategy of Yuchai. “the engine business slowed down for 15%, but gained 3% more of market share. ” Yan Ping is optimistic, “because the whole industry sees business decrease by 35%.”
“I was never worried, whether the business grows or slows down, it is natural, and irresistible”, said him. In 2012, “ there are inadequate construction taking place in high speed railways, real estate, mining, coal exploitation. So the market demand is weak”. In the eyes of Yan Ping, this is not a bad thing, “ because after the slow down, the promoting would be more rational.”
In early 2013, news revealed about downsizing of Yuchai. Yan Ping told the reporter the downsizing reflects the recession of the whole industry. Construction machinery business met numerous problems in 2012. The sales revenue totals less than ￥2 billion, only half of that of the former year of ￥ 3.8 billion. “ it’s not only Yuchai, but the whole industry had a tough year.” Because of over investment and over supply, Yan Ping estimates the heavy industry will have another 2-3 years of hard time. “This is an industrial revolution, which naturally brings about hardships and pains.” “ after a period of high speed developing, some adjustment are needed. It is important for companies to be rational rather than overly worried. We need to make according adjustment towards products, strategies, and slow ourselves down. ” Yan Ping added.
Apart from the adjustment of construction machineries, Yuchai also spend millions to hire consulting companies to train workers and help detecting problems with Yuchai.
The total inventory of Yuchai engine overseas passed 120,000 in 2012, of which, 54,000 are in south east Asia. And 38,000 engines exported to Vie Nam all together, leading the industry. This is a huge leap forward compare to former performance. But, Yan Ping is not completely satisfied, “the exportation contributes only 5% to the total sales avenue, this is too little.”
Yuchai is the largest diesel engine maker in China. In Yan Ping’s eyes, the exportation situation does not match the status of Yuchai in the industry. “Yuchai plans to set up international company , but, what could be called an international company?” he told the reporter, Yuchai aims to achieve 30% of sales revenue through exportation. So, there is a long way to go for Yuchai to be “internationalized”.
Source : www.chinabuses.org
Editor : dennis
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