Different from passenger auto market divided by foreign brands enterprises, in China commercial vehicle market, own-brand truck was always at strong position. According to the China Automobile Engineering Society statistics, in 2006 China own-brand vehicle took more than 90 percent market share, and own-brands cargo truck sales took 94.2 percent of total amount. Foreign brands truck can’t compete with own brands on market share, and they are exploring their chinese localization process now. So, One comment said that although foreign auto enterprise gaints win a lot in China market, they will be kept out of China truck market by gradually strengthening own-brands trucks.

It is undeniable that China national conditions and policies may be unsuitable to foreign enterprises in China. But market is changing, multinational giants will gradually adapt to China environment, and China own-brand trucks may face more fierce strike and crisis from them than now. Before the crisis, the Chinese truck companies should perhaps think of some more long-term development.

The heavy truck market leader is the one with superior grade technology.

From 1956, the first batch trucks was off the assembly line, to now, China commercial vehicles as well as heavy truck industry has more than 50 years of development history already. For the needs of economic construction, government supported commercial vehicle industry more than passenger cars, which created FAW, Dongfeng, and quite a number of truck companies. With inexpensive products, strong after-sales service networks, they quickly occupied domestic truck market. And whole industy’s high technology truck demand is little, so Volvo, Mercedes-Benz, Scania and other high price and high quality truck can hardly get greater market shares. Even if with long service life, lower maintenance costs, it is still difficult to persuade Chinese users spend three to four times money to buy imported trucks.

China high-end truck market is not mature enough, but with rapid economic development, low-end trucks may unable to meet market needs then. User purchasing power increasing, transport level and transport environment improving, modern logistics system gradual establishment, all of these will promote trucks product structrure adjust. Heavy duty, highly efficient, high-tech and high performance heavy truck damand kept on increasing. According to the latest China Automobile Industry Association statistics, From Jan 2007 to May domestic medium and heavy trucks(total mass in eight tons or more demand become the fastest-growing market segments. According to foreign institutions predict that in the next 3-5 years, China's high-tech heavy truck market demand will increase more vigorously, to 2010, 15 tons or above truck truck will reach 70 percent of truck market in China.

However, current China-made high-grade, large tonnage truck production is on start-up stage, about 97 percent of domestic trucks are still in in low-end level. Existing domestic high-end heavy truck manufacturers are have great difference with foreign counterparts on quality, technology and R & D investment. For example, in engines, transmissions, rear axles these core components, Sweden, Volvo trucks have been equipped with 16-liter engine, I-Shift transmission systems and the latest tyre side slow rear bridge, which is unmatched to domestic truck enterprises.

When most China trucker can buy high-end trucks, china truck market will be occupated by transnational truck giants. So, how to go out of low-end market "Red Sea", get in high-end market "Blue Ocean" and nareow the gap between foreign truck enterprises in the next 5-10 years, that is most chinese truck enterprises main issue.

Technology is the truck enterprises development lifeblood in future.

Domestic and foreign industry policy differences, that leads to domestic trucks more attractive to Chinese consumers also. For example, Europe truck safety, fuel consumption and emission regulation are considerably higher than domestic policy requirements, therefore, imported trucks’ cab, engine and emissions system configuration much higher than similar domestic models also, that resulte in an inferior position on the cost-effective. As for domestic consumers are "Price decided to purchase" , in the absence of mandatory policy requirements, they would prefer lower configuration and cheaper domestic models.

But more and more signs show that commercial vehicle industry policys are more and more closer to European standards. At present, China III emission standard is closer to Euro III emission standard, while Beijing plan to imply IIII standards in the next year. In addition, new safety laws and regulations according to European safety standards are under discussion.

Relevant data show during "11th Five-Year Plan" period, the state will promulgate and propose "commercial vehicles cab occupant protection" and "commercial vehicle front underneath protective devices", these two standards directly related to commercial vehicle cabs safety. State promote energy saving and emission reduction trucks now, and it will support these trucks through tax and other economic means. In 2007 China International Automobile Industry Development Forum that held in Tianjin, finance ministry’s tax administration branch manager said in order to inhibit high-emission vehicles development, the Finance Ministry is accelerating environmental taxes feasibility study now. After new policy carry out, products can achieve the required standards or not will directly relate to truck enterprises survival.

But China truck enterprises still have huge difference with futher state standard on fuel economy, emissions and cab security. Most dometic enterprise can hardly manufactue III emission standards heavy truck or liquefied natural gas fuel heavy truck. But most advanced environmental protection technology European truck not only meet the EU IIII, Europe IIIII emissions standards, but also have advance technology on mixed fuel turck. The most typical example is that when many domestic manufacturers are furtunate that their own trucks achieve European III emmission standard, Volvo has reseached zero carbon dioxide emissions green trucks, and transformated their factories into the world's first truly carbon zero dioxide emission plant.

In the security area, Sweden truck cab such as Volvo, Scania commonly adpot high safe keel structure, and passed the well-known strictest sweden cab, total investment is more than one billion. Most domestic enterprises not only lag on technology, capital investment but also have little security sense with them.

If Chinese enterprises can not have equal strength on security and environmental protection to compete with foreign enterprises, after new standard carry out, they will not only loss dometic market, but also impact oversea market a lot. Unfortunately, many enterprises are focusing on market share now, missed advanced technology developing opportunity, and the global automotive industry advanced technological revolution will complete in around next 20-25 years, there is not so many time left already.

Leading on sales, that does not mean that we have competion strength with foreign enterprises, complacency, blind arrogance will inevitably lead to catched up by competitor, eliminated by the users and loss market share. The only way to win the futhre and market is to learn to others with an open mind.