The basis of the networking of commercial vehicles is not as good as private cars in terms of hardware. It has few sensors and low accuracy. Commercial vehicles 6%, tank generally 400 liters, power CAN is not standard, less body, OBD shape is fictitious, commercial vehicles OB interface, but only physical acceptance oral, no wires, hardware foundation is poor. Fortunately, for vehicle networking, the most important thing is not sensors and hardware, the most important thing is "connection". The networking foundation of commercial vehicles is very good. Commercial vehicles can be divided into several categories, one is engineering machinery and taxi, because each vehicle has networking module, which is 100% for the needs of loans and scheduling. There are also passenger buses, long-distance passenger and tourist buses, and dangerous chemicals buses, each with a networking module. There are also heavy-duty trucks. According to Traffic No. 5 in 2013, all heavy-duty trucks must be equipped with networking modules, so the installation is 100%, the proportion of commercial vehicles networking is 60%-70%, private cars strive for 10%, in fact commercial vehicles can reach 50%.

In addition to the networking foundation, there is a favorable condition for commercial vehicles. Host factories have a strong willingness to do vehicle networking. I use a set of data to explain the fact that the annual output of heavy trucks, the evolution process from 2000 to 2016, the rapid growth period of commercial vehicles has ended, from 2000 to 2014, the growth period has increased 7 times, and then almost no growth. Its period of rapid growth is over. What happens when it ends? Industry concentration will be increased so that differentiation will be strengthened and pure price war will be weakened. From now on, no price war will be waged because all price wars are waged by small enterprises. After the concentration is increased, no price war will be waged, and profits will be greatly increased. This determines that everyone has a strong desire to do commercial vehicle networking.

This conclusion is my own speculation based on the general industrial law, and my conclusion is that in the next few years, business profits of commercial vehicles will greatly increase. If you doubt this conclusion, I want to use an example from other industries to prove that the air conditioning industry grew very fast from 2000 to 2005, and air conditioning line growth declined from 2006 to 2011. This is basically the same in every industry, which can not escape this rule. From 2000 to 2005, it increased by five times, followed by only one time. But the profit of air-conditioning factories is completely opposite to what you think. In order to make this PPT, I have doubled the annual report of these three enterprises for 10 years. In the fast growth period, they actually do not make money. The profits of the three giants, Gree, Haixin and Haier, in the previous fast growth period, have remained almost unchanged. Gree has done a very good job, doubled, and then their profits have doubled ten times due to the improvement of differentiation. This is my point of view at a meeting in Hangzhou last year. To support this point, I have been buying stocks of commercial car factories every year since last year. If I attend this meeting regularly, I will report my stock returns to you every year, because I think the industry has its own general rules.

The Impact of Commercial Vehicle Networking on Industry Chain

I will use a few cases to explain how the commercial vehicle networking has a profound impact on the industry chain? Host factories, transportation companies, drivers, insurance companies. People who grew up with traditional Chinese education are not unfamiliar with Capital. Productivity determines production relations. Why does the networking of cars have a big impact on these four elements and the four industrial chains, because it liberates productivity. Let me give you an example. What is the hardest thing to manage in a freight company? Truck driver. So far in China, the vast majority of transportation companies are small companies with less than three cars, because they are not big enough to grow bigger because people are too difficult to manage. Now the trend of intensivism is very obvious. There are more and more people in large companies and fewer small companies with two or three cars. Because the drivers become better managed after the car networking, it is easy to grow in size.

Let me tell you a few examples of how this has affected the industry. As a host factory, when it comes to the networking of commercial vehicles, these two systems must be indispensable. This is the first networking of vehicles in the Chinese bus industry and the first networking of vehicles in the truck industry. The creators are Fang Hongwei, the former chairman of Shaanxi Autonomous Group, and Wu Wenwen, the former general manager of Jinlong, Suzhou. You can use this area to compare with 4S service stores. Are your points set up properly? The factory says they are not designed properly. The hotter the points are, the more dense they are, but they are not. Because the majority of commercial vehicles are loans and sales, it was difficult to do in this industry before. After I bought a car, business can repay money, business can not repay money if it is not good. Now with the car networking, if you don't pay me and I lock your car, sales will be easy. Also, it is difficult to schedule production before. Now if there is a car network, will the car's one-year operation time become longer to reduce and increase production? There is also research and development guidance, the clutch is particularly vulnerable, with the car network, you can use data to talk, on earth, what smoking addiction causes the clutch to break down, it is easy to know the reason.

The impact of transportation companies is fuel consumption, vehicle consumption and safety. It's like having three fruits in a tree. One is driving habits. If you manage your driving habits well, your fuel and car consumption will be lower and your safety accidents will be less. Before we did this system, we visited a lot of places, Benz and so on. Our copyright of this system is in Taiwan. The idea is that all drivers should be managed quantitatively, with high scores as the standard and low scores as the standard, if they continue to study with low scores. As long as the score is very low one day in the morning or one day in the evening, as long as the standard management is in place, according to our data, an average fleet of vehicles can save 6% of their fuel consumption. In addition to fuel consumption, there are clutches, gearboxes, and traffic is related to behavior. According to hundreds of thousands of cars on our platform, statistics show that a driver drives well with a driver and drives freely. What is the final value impact? Can be less than 20,000 yuan a year, compared with money, safety is very important, the biggest benefit is that safety incidents can be reduced.

After all, vehicle networking is just a tool. Tools are always tools. Many customers say that vehicle networking is very useful. Some customers say that vehicle networking is useless at all, because the driver's behavior is repetitive, we must use this tool to manage him well. After the driver's behavior is well managed, there is also a direct beneficiary, that is, the insurance company, because of the Heinrich rule, minor injury accidents, there are a large number of irregular behavior behind, high fuel consumption, good car consumption, high accidents.

Finally, I would like to give another example to show how the car network has a very direct impact on our life. The engineer truck is called a dirt truck in Guangzhou. Everyone is impressed with this truck. It often speeds too fast, and because it has a high center of gravity, it is easy to bury people alive after speeding, which is a lot of tragedies. And sprinkle along the road, run all the way, get up in the morning and see the speckled dirt on the road, basically these cars are dry. There are also illegal unloading and so on.

I would like to conclude with a real data change. What happened to Changsha in 2015 when it implemented the vehicle networking system for all of its cinder trucks? Before the implementation, more than 20 people died each year because of the cinder truck, and 56 people died each year in Xi'an. Only because the cinder truck and the mud truck collided with each other, zero casualties were achieved after the implementation in 2015. Because the overload could not be exceeded, the speed could not be exceeded, and dust was raised, which is largely caused by the cinder truck. After the implementation in Changsha, the number of days that the air meets the good standards increased by 26%. Residue transport workers make profits everybody does not make money. Later, everybody makes money because there are fewer accidents, no losses, and the life of cars is longer, so they make profits.