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Chapter 2617 Taxi Market
That day, Suning called Manager Sun from the marketing department to his office.
A map of China was spread out on the table, with several circles drawn on it in red and blue. Some circles were in North China and Northeast China, some in Southwest and Northwest China, and some in coastal and central cities.
When Manager Sun came in, Su Ning was standing in front of the map, holding a pen in his hand.
"Mr. Su, you wanted to see me?"
“Manager Sun, from now on, we shouldn’t put equal effort into promoting all three models. Our advertising budget isn’t unlimited; spreading it evenly like sprinkling pepper will be the least effective. So, we need to divide it according to terrain and region.”
"..." Manager Sun immediately took out his notebook and started taking notes.
Next, Suning pointed to the North China and Northeast regions on the map with his pen: "The North China Plain and cities in the Northeast will be the main focus for promoting Qinglong sedans. These areas have flat terrain and well-developed road networks, making urban commuting and inter-provincial highways the main battleground for sedans. Advertising will be concentrated in newspapers, radio, and outdoor billboards in cities, with advertising slogans emphasizing comfort and a business feel."
Su Ning then moved his pen to the southwest and northwest regions, circling those areas: "Strongly promote the White Tiger off-road vehicle in the southwestern mountainous areas and the northwest region. The road conditions in these places are complex, with many unpaved roads. In some places, after leaving the highway, it becomes a dirt road or gravel road, and after rain, the ground is full of mud puddles. The White Tiger's chassis and off-road capability are the best in those places. The advertising doesn't need to be fancy; just put up real footage of the White Tiger running on bad roads. It's more effective than any advertising slogan."
Finally, Suning pointed to coastal and central cities: "We are promoting the Zhuque urban SUV in coastal cities and emerging central markets. These areas are experiencing economic growth, and consumers need to drive in the city and occasionally in the suburbs. They need the off-road capability of an SUV and the comfort of a sedan. The Zhuque is positioned perfectly in the middle."
Manager Sun nodded as he took notes, feeling that this approach was completely different from that of joint venture brands.
Joint venture brands typically offer a single model that dominates the national market, relying on brand influence and consistent advertising campaigns to conquer the market. For example, Santana's advertisements were identical from Beijing to Guangzhou.
However, Chinese automakers currently do not have the same brand premium as joint venture brands, so engaging in head-to-head advertising wars is not the best option.
Precision regional strikes, concentrating limited resources in the areas where they can produce the most results, are actually more economical and effective.
"Manager Sun, there's one more thing. Immediately set up a special team to liaise with taxi companies across the country."
"Taxi?" Manager Sun was taken aback. "President Su, the taxi market has always been dominated by joint venture brands. Santana and Jetta occupy the majority of the market share, and the rest is divided up by Fukang and Xiali. It will be quite difficult for a brand new brand like ours to compete in this market."
“Only with high difficulty is it worth the effort to acquire.” Suning exuded confidence. “We will rebuild a taxi version on the Qinglong platform, keeping the three main components unchanged—engine, transmission, and chassis—using the same powertrain as the Qinglong sedan. The interior and electronic configuration will be done to the bare minimum. We will remove the leather seats and replace them with durable fabric, remove the power windows and replace them with manual ones, and remove the large central control screen and replace it with a simple radio. The rear seat space will be increased, the trunk will be reduced, and we will readjust it according to the usage scenarios of taxis.”
Manager Sun quickly took notes, repeating aloud to confirm: "The three main components remain unchanged, the interior is downgraded, the rear seats are enlarged, and the trunk is shrunk."
"The core selling point is just one thing—durability and robustness." Su Ning put down his pen and looked at Manager Sun. "Taxis run hundreds of kilometers a day, tens of thousands of kilometers a year, with the driver resting but the car never stopping. What do drivers care about most? It's not whether the seats are genuine leather, or whether there are power windows, but that the engine can't break down, the transmission can't jerk, and the chassis can't fall apart. If a taxi breaks down in the repair shop for a day, the driver loses a day's earnings. Saving him the time and money spent on repairs is better than giving him any extra features."
Manager Sun asked, "What about the price?"
"The price needs to be brought down to a level that taxi companies can accept." Su Ning's tone was very firm. "What we want is not profit per vehicle, but for the Tianchao Auto logo to be seen all over the streets, and for production capacity to be maximized. Think about it, hundreds of taxis running on the streets of Beijing every day, each one is a live advertisement all day long, and it's free. You can't buy this kind of exposure no amount of money can buy with advertising."
"Understood! The concern is that it might affect the sales of the Qinglong sedan."
"Taxis will not display the Azure Dragon logo, but will retain the Imperial Seal logo of China Automobile."
"Understood! I'll go and assemble the taxi team right away."
……
The task force acted swiftly.
Manager Sun pulled a few people from the marketing and engineering departments, and transferred a few engineers from the Shunyi factory who worked on the Qinglong platform. In less than a week, the team was set up.
The engineering department, following Suning's instructions, retained the powertrain of the Qinglong sedan, but redesigned all interior parts to the lowest possible standards.
The leather seats have been replaced with thicker, more durable fabric seats, available in only one color—dark gray, which is dirt-resistant.
The power windows were replaced with manual ones, and the button positions on the door trim panel were simply covered with a plastic cover.
The center console only has a radio and an air conditioning knob; nothing else.
The rear seats were moved back five centimeters and the backrest angle was straightened a bit, creating more legroom.
The trunk space has been reduced from 500 liters to just over 300 liters, with all the saved space going to the rear seats...
Three people need to sit in the back of a taxi, and whether it's cramped or not is something passengers experience every day.
A prototype was produced in less than a month.
Manager Sun sent the car to several taxi companies in Beijing for road tests.
The road test conditions are extremely harsh. Taxi drivers don't drive like private car owners do. They accelerate hard, brake hard, and don't slow down when going over speed bumps. They work two shifts a day, changing drivers but not changing cars.
Some drivers work for nearly twenty hours a day to get more fares, with their wheels almost never stopping except for refueling and shift changes.
After a month of driving, the engine of the Qinglong taxi version remained stable, the gearbox shifting logic did not degrade, all the fasteners of the chassis suspension were normal, and even the shock absorbers, which are most prone to problems, did not leak oil.
Technicians from several taxi companies set up the test vehicle for a full inspection, shining flashlights from the front to the back of the car. The chassis was covered in mud and normal wear and tear, with no parts needing replacement.
The technician signed the road test report, and the comments section contained the same sentence: "Recommendation to purchase."
……
The first major taxi order was secured in Beijing.
The team leader of a long-established taxi company in Beijing is surnamed Hu. He has been in the industry for nearly 20 years and has driven all kinds of cars.
Captain Hu personally participated in the road test.
After the road test, Manager Sun went to discuss the procurement contract with him.
Captain Hu sat in the chair in the fleet office, flipping through the road test report twice. "Manager Sun, let me tell you the truth. The joint venture brand sedans our fleet used before started to loosen their chassis after 200,000 kilometers. They would creak and groan when going over speed bumps, and passengers in the back would frown. Your Qinglong taxi version, after the road test, I had someone take the chassis apart for inspection, and even the bushings weren't loose. I have no complaints about the quality."
Manager Sun asked, "Then what is your preferred purchase quantity?"
"We'll order two hundred vehicles first. If they run for six months without any major problems, we'll give you priority when the whole fleet needs to replace its vehicles next year."
"That's wonderful! I wish us a pleasant collaboration."
"Pleasant to work with."
Following that, taxi companies in several provincial capitals, including Shanghai, Guangzhou, and Chengdu, successively signed procurement contracts.
There were initial doubts in Shanghai, and the purchasing manager of the taxi company specifically visited the production line at the Shunyi factory.
After seeing it, I stood at the entrance of the welding workshop for a long time. When I came out, I said to Manager Sun, "Manager Sun, this is really incredible! I always thought that the production lines of domestic cars couldn't compare with those of joint venture cars. After seeing your factory today, I have to change my mind."
"Mr. Zhang, how many vehicles does your company plan to purchase?"
"We still need to go back and study this, but the first batch will be no less than one hundred vehicles."
"Alright! Let's sit down and have a meal, then we can talk slowly."
"Haha, then I won't be polite."
After Mr. Zhang returned home satisfied, less than a week later, the first batch of orders for 150 Qinglong taxis arrived via fax.
Taxi companies in Guangzhou are more direct.
Their purchasing manager didn't even visit the factory; he directly took the road test report and price list and compared them with the Santana.
After comparing prices, he called and said, "Manager Sun, your price is much cheaper than the Santana's, and the road test data is even better. I won't test drive it; I'll order it directly. But can you guarantee the delivery time?"
Manager Sun patted his chest with delight and assured him, "Don't worry! The Shunyi factory currently has three flexible production lines operating simultaneously, with ample capacity. Once your orders are processed, all vehicles will be delivered within a month."
"That's great! I hope we can have a pleasant collaboration."
"It's a pleasure to cooperate! China Auto will not let any supporters down."
……
The volume of taxi orders is not the same as the volume of private car retail sales.
Private cars are sold one by one, while taxis are signed up by fleets, with a single order involving hundreds of vehicles.
Less than a quarter after the Qinglong Taxi Edition was launched, the cumulative number of orders from taxi companies across the country exceeded two thousand.
A steep upward trend appeared on the monthly sales curve of Tianchao Auto. The angle was so sharp that Xiao Wang, who was in charge of creating the charts in the marketing department, had to double-check the data twice.
Xiao Wang initially thought he had made a mistake, so he retrieved the original data, recalculated it, and went to the finance department to double-check the invoices and delivery slips. Only after confirming everything was correct did he print out the chart and deliver it to Manager Sun's desk. When Manager Sun presented the sales curve chart at the department meeting, the meeting room was silent for two seconds, and then the entire marketing department cheered.
Some people slammed their fists on the table, some whistled, and some stood up to give their colleagues a high-five.
Manager Sun simply posted the charts on the whiteboard, turned around, and said to everyone, "Thank you for your hard work. But this is just the beginning. Do you know how much the taxi market across the country is replaced every year? What we've just tasted is the first bite. Our next goal is... for at least one taxi company in every provincial capital to have Qinglong taxis in their fleet."
"clear."
……
Tianchao Auto's three models were conquering markets across the country, while Suning personally flew to Shanghai.
The group consisted of only two assistants and two heads of the investment department, a total of five people, and they kept their luggage simple.
After getting off the plane, Mingju Real Estate's Shanghai branch sent a special car directly to us.
In 1997, Pudong was full of construction sites.
The Oriental Pearl Tower has already been erected, while the Jin Mao Tower is still under construction, and the skyline of Lujiazui is growing taller every day.
The construction fences on both sides of Century Avenue are lined up one after another, with the logos of various development companies and slogans such as "Building Pudong" sprayed on them.
Dump trucks and cement mixers lined up on the temporary construction access road, raising dust that mingled with the damp wind blowing from the Huangpu River, creating a pungent and fishy smell in the air.
Suning sat in the car, barely speaking, his eyes fixed on the scenery outside the window.
Suning wasn't just admiring the scenery; they were observing the city's vitality.
……
The negotiations took place in the conference room of the Pudong New Area Administrative Committee.
The negotiation team dispatched by the management committee was of high caliber, led by a deputy director in charge of investment promotion, and included several division chiefs from the planning bureau, land bureau, and economic commission.
The two sides sat facing each other on either side of a long conference table, on which were placed bottled water and small porcelain cups of tea.
Xiao Zhao distributed five copies of the materials prepared by Tianchao Auto to the other party. Each copy was placed in a dark blue folder with the Tianchao Auto logo printed on the cover.
Zhuangzhuang sat next to Suning and opened her notebook to take notes.
The deputy director, surnamed Han, was around fifty years old and spoke with the shrewdness and tact characteristic of Shanghainese.
Deputy Director Han began by politely welcoming the Suning delegation, saying that Suning's achievements at such a young age are a source of pride for the national automobile industry.
Then, changing the subject, he began to talk about Pudong's positioning, "President Su, the development and opening up of Pudong is a national strategy. We welcome outstanding enterprises from all over the country and even the world to invest and do business in Pudong. We have also noticed the achievements of Tianchao Auto over the past year or so, which are remarkable."
"But as you can see, Mr. Su, land resources in Pudong are extremely scarce. The industrial plans for the core areas of Lujiazui Financial and Trade Zone, Waigaoqiao Free Trade Zone, Jinqiao Export Processing Zone, and Zhangjiang High-Tech Park are basically full. Now you are asking for a piece of industrial land in Pudong that is large enough to support a complete vehicle production base. Frankly speaking, there are almost no readily available plots in Pudong's current land reserves that can be directly matched with this size."
Su Ning nodded without replying, waiting for the other party to reveal all their cards.
Seeing that Su Ning remained silent, Deputy Director Han became even more direct: "President Su, let me be frank with you. Pudong's current focus for attracting investment is top international companies and financial institutions. General Motors has already settled in Jinqiao, and we prioritize supplying industrial land to projects of this scale. Although Chinese automakers are doing well among domestic brands, compared to international giants like GM, they still hold a lower weight in Shanghai's evaluation system. This isn't about my personal opinion of you; it's an objective reality I must face. I have to be responsible to my superiors and to Pudong's industrial planning."
The director of the planning bureau sitting next to him chimed in, "President Su, Director Han is telling the truth. We really don't have any large tracts of industrial land that we can directly allocate to the vehicle project right now. Land in Pudong is being used sparingly, inch by inch."
After listening, Su Ning picked up her teacup, took a sip, and put it down before speaking, "Director Han, what you said is the truth, and I'll also tell you a few truths."
"Please speak."
"Tianchao Auto is indeed not General Motors. After all, GM is a century-old automaker and the world's leading automaker, while Tianchao Auto has only been established for a little over a year. But there is one difference between Tianchao Auto and GM: Tianchao Auto is a 100% Chinese private enterprise. Our brand is called Tianchao Shangguo (天朝上国), our car logo features the Imperial Seal of the State, and when we show promotional videos in Times Square, the ending says 'Made in China, Built to Last.' The development of Pudong is not just about attracting foreign investment, but also about cultivating local national industries. In the long run, which Pudong is more in line with the national strategy: a Pudong entirely dominated by foreign brands, or a Pudong with both foreign investment and domestic independent brands? I think this question deserves to be discussed at the mayor's office meeting."
"..." Deputy Director Han's eyebrows twitched, but he did not interrupt him.
Suning continued, "Secondly, regarding the land issue. You mentioned that Pudong's industrial land use plans are already full, which I understand. Land in the core area is indeed precious, and using it for a private car company to build a factory wouldn't be a priority under the current evaluation system. However, as far as I know, there is a reserved plot of land south of the Jinqiao Export Processing Zone, which hasn't been officially listed for sale yet. That plot isn't in the core area, but it's still under the jurisdiction of Pudong New Area. Tianchao Auto is willing to build its factory in a relatively peripheral area without occupying land resources in the core area. We're not competing with GM for land in Jinqiao; what we want is land in Shanghai that hasn't been used yet."
"..." Deputy Director Han picked up his teacup, took a sip, and made no comment.
"Third, you are worried about Tianchao Auto's financial strength. I can have the finance team submit Tianchao Auto's bank credit line and Mingju Real Estate's asset statements to the management committee for review. If you still have any problems after reviewing them, I can provide the supplementary materials when I come back. I don't need Pudong to give me the most favorable land price; we can go by market price. What I need is cooperation in planning access and approval."
"..."
"Director Han, we are here today to show the Pudong Management Committee that we have brought real money and 120% sincerity."
Deputy Director Han exchanged a glance with the director of the planning bureau next to him.
The director of the planning bureau nodded slightly, and Deputy Director Han turned to him. "President Su, the land you mentioned does indeed exist in our long-term plan. However, its land use designation is still under review. Changing it from industrial reserve land to formal industrial land requires a complete regulatory adjustment process. This process is not something a deputy director like me can decide; it needs to be discussed at the mayor's office meeting. Moreover, the supporting facilities on this land cannot compare with those in the core area—the road network, pipeline network, and public transportation are still on the drawing board. Even if we are willing to cooperate, the construction period for your project will be significantly extended. After all, the land you mentioned doesn't even have a decent road yet."
"We will solve the supporting problems ourselves. When Tianchao Auto's Shunyi factory was built, it was surrounded by farmland and there wasn't even a paved road. We built the roads ourselves, connected the pipelines ourselves, and built the substations ourselves. No matter how bad the conditions are in Pudong, they can't be worse than Shunyi at that time. If we can get the production line running in Shunyi within a year, we can do it in Pudong too."
The director of the planning bureau asked from the side, "Mr. Su, what is your projected investment intensity?"
Suning turned to the head of the investment department, who immediately opened a folder and said, "The first phase of the project plans to invest no less than one billion yuan, covering a complete production line for the four major processes of stamping, welding, painting, and final assembly. The second phase reserves space for expansion, and additional investment will be made depending on market conditions."
The director of the planning bureau wrote the numbers down in his notebook without saying anything, but after he finished writing, he looked up and glanced at Su Ning again.
The negotiations lasted from 2 p.m. until 6 p.m., with no breaks except for bathroom breaks, and the tea on the table was changed several times.
The two sides repeatedly clashed over several core terms, including land selection, planning adjustments, investment intensity, tax revenue sharing, and job creation commitments.
Deputy Director Han is a seasoned negotiator who speaks with perfect tact and never makes definitive statements, but he also never makes promises lightly.
Suning wasn't in a hurry; for every problem the other party raised, he provided a corresponding solution.
The other party said that it was difficult to change the nature of the land, and Suning said that the legal department could cooperate with the management committee to go through the adjustment process, and provide personnel, materials and expenses.
The other party complained about the poor supporting facilities, while Suning said it would pay for the infrastructure itself.
The other party said that the tax revenue sharing ratio needed to be discussed further. Suning said that the tax could be discussed, but the localization ratio of employment positions could be locked in through contract terms.
Suning has always maintained sufficient patience.
Zhuangzhuang took notes throughout the entire process, filling more than a dozen pages in her notebook, but she was finding the protracted negotiation somewhat exhausting.
After the first day of negotiations concluded, both sides had a simple working lunch in the management committee's canteen.
Deputy Director Han visibly relaxed at the dinner table. “President Su, our canteen chefs are locals. They cook with rich, dark sauces. Try it and see if it suits your northern taste.”
Suning picked it up and ate it, saying, "It tastes good. It's very unique."
Deputy Director Han smiled. “President Su, I admire the attitude of you private entrepreneurs. I’ve worked at the Pudong Management Committee for so many years and have seen all kinds of investors. Some come in and just make empty promises, talking big but knowing nothing when asked about details. You’ve laid out solutions to every problem on the table today, and I see that clearly. But the land issue in Pudong really isn’t something I can decide alone; it needs to be discussed at the Mayor’s Office meeting. I can only say that I’ve heard your demands and will report to my superiors as soon as possible. As for whether it will work out, I can’t make any promises right now. Please understand.”
Su Ning put down his chopsticks and wiped his mouth with a napkin. "Director Han, before I came to Shanghai, I never thought we could reach an agreement in one go. Reaching an agreement in one go is wishful thinking, not negotiation. I'm here today to show Tianchao Auto's attitude, our sincerity, and our strength. It's okay if we don't reach an agreement today; I'll come back next month. It's okay if we don't reach an agreement next month; I'll still come back in the second half of the year. Tianchao Auto's goal of building a factory in Shanghai will not change."
Deputy Director Han looked at Su Ning, paused for a moment, and then suddenly picked up the teacup beside him and said, "President Su, there is no wine on the table, so I will toast you with tea instead. I toast your sincerity and the indomitable spirit of your private enterprises."
Su Ning also picked up her teacup and clinked it with his.
……
It was completely dark when I left the Pudong Administrative Committee.
There were far fewer vehicles on the roads in Pudong New Area than during the day, and searchlights were still on at several large construction sites. The muffled rhythm of pile drivers could be faintly heard in the distance.
As Xiao Zhao walked next to Suning, he glanced back at the brightly lit building of the management committee, where several windows were still lit, presumably indicating that someone was working overtime.
Unable to resist looking at Su Ning, he sighed, "President Su, after all this, are you still confident? I don't think Director Han has been telling the truth from beginning to end."
The waiting driver opened the car door, and before getting in, Su Ning said, "Negotiation is like farming. Turning the soil, sowing seeds, watering—you can't skip any step. If you want to sow today and harvest tomorrow, then you're not farming; you're stealing food. And those who steal food will eventually be driven out."
"..."
Xiao Zhao stood at the car door, watching Su Ning bend down, get into the car, and close the door, then pondered those words for a moment.
He couldn't help but shake his head and smile, then opened the passenger door and got in.
...(End of this chapter)
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