Commercial vehicle "long warranty" suspected of unfair competition?

Foton Motor's recent "Worry-Free" service campaign has sparked a heated debate in the domestic commercial vehicle market. The company introduced an extended 200,000 km warranty for key components on several of its brands, including Auman, Ao Ling, Landscape, and Sapu. This move has raised concerns among industry players, who see it as a disguised price war tactic aimed at smaller competitors. The campaign, launched nationwide, offers customers up to 39 key parts covered under a long warranty, along with free maintenance. Many auto companies argue that this strategy undermines fair competition and could lead to a new round of price battles, similar to what happened in the home appliance sector. Some have even called on regulatory authorities to intervene, fearing that the commercial vehicle industry might face premature reshuffling. Industry experts point out that such an extended warranty is unprecedented in China. Commercial vehicles, especially trucks, are heavy-duty tools that suffer more wear and tear than passenger cars. Most domestic trucks typically come with a 100,000 km warranty. Extending it to 200,000 km would significantly increase maintenance costs, which many smaller manufacturers may not be able to afford. A veteran truck driver estimates that after 100,000 km, the cost of repairs could range from 8,000 to 12,000 yuan, and for heavier trucks, the cost is even higher. By offering free maintenance and an extended warranty, Foton Motor is essentially reducing the effective price of its vehicles by over 10,000 yuan, putting pressure on competitors' profit margins. Some industry insiders believe that Foton Motor is playing the role of a "price killer," pushing profits to the bottom line. According to one light truck manufacturer’s market manager, most small-scale commercial vehicle companies would struggle to remain profitable under such conditions. This has led to fears that the "long warranty" could be the beginning of a vicious cycle of competition. Analysts note that the domestic truck market has already experienced a period of oversupply and declining sales. Many truck models have had to reduce prices to maintain market share. Now, with Foton's new policy, the pressure on industry profits is expected to intensify further. Dealers have also felt the impact. One Foton dealer reported that the number of customers visiting the showroom doubled after the launch of the long warranty. Competitors are now urging their own manufacturers to match the offer or provide better service packages to stay competitive. Despite these concerns, Foton Motor's deputy general manager, Song Tianshan, strongly denied allegations of inciting a price war. He argued that European trucks often have warranties exceeding 600,000 kilometers, and such practices are not considered "vicious competition." According to Song, Foton's initiative is based on product quality improvements and international partnerships, aiming to bring service standards closer to global levels. He also emphasized that Foton's extensive service network and strong market position allow it to sustain the warranty policy without sacrificing profitability. "We don't engage in unprofitable sales," he said, dismissing claims of a price war as baseless. The company remains confident that its approach is both customer-focused and sustainable.

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