Commercial Vehicles: The Starting Point for Chinese Cars to Go Global


Experts stated that commercial vehicle companies must play a comparative advantage more effectively and lay a good position for the export of automobiles with high quality and high efficiency.

Last year, including the chassis with engines, China exported more than 220,000 commercial vehicles, with a total amount of nearly US$2.23 billion, which accounted for 64% and 71% of China’s total automobile exports. Commercial vehicles are still the backbone of China's export of automotive products.

The reporter learned from the "2007 China Commercial Vehicle Export Forum" jointly sponsored by the China Chamber of Commerce for the Import and Export of Machinery and Electronic Products, the China Automotive Engineering Society, and the Department of Foreign Economic Research of the Development Research Center of the State Council that in terms of commercial vehicles, China has a longer period of design, The accumulation of manufacturing and marketing has also brought in advanced modern technology. This has enabled commercial vehicles with independent intellectual property rights and independent brands to maintain a dominant position in the domestic market with a good price/performance ratio.

With a huge domestic market as the backing, after the domestic market and foreign companies compete in the baptism, China's commercial vehicles to the international market to do a good job in preparation. Commercial vehicles have become an entry point for Chinese cars to enter the global market and have achieved good results for several years.

The only way for the transformation and upgrading of the international market The Zhang Lujing, the first vice president of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, stated at the forum that after decades of development, the commercial vehicle industry in China has achieved remarkable progress in the level of technology and production technology. The product structure tends to be reasonable, and a series of products with high performance-price ratio such as heavy-duty trucks, medium and light trucks, special-purpose vehicles, and large and medium-sized passenger vehicles have been formed. At the same time, the investment structure of commercial vehicles has become increasingly diversified, forming a number of brand-strong enterprises, and successively building commercial vehicle industry clusters with continuous competitive advantages in various regions.

Data show that last year, commercial vehicles with a total value of 2.2 billion U.S. dollars were exported to more than 100 countries and regions in the world. It is an indisputable fact that China’s commercial vehicles have begun to move toward the international market, and has received great attention from the international market. In view of the relatively mature and increasingly saturated domestic commercial vehicle market, as the commercial vehicle production capacity continues to increase in the next few years, internationalization will become the only way for the commercial vehicle industry to achieve transformation and upgrading. The export of commercial vehicles will provide important opportunities for this process. power.

Zhang Xiaoji, Chairman of China Association of Automobile Engineering, is full of confidence in the future of China's commercial vehicle market: "China's commercial vehicles have a vast market, there are more favorable comparative advantages, more independent innovation capabilities, it will become the Chinese automotive industry in the international market Competitive and strong industry. It is understood that at present, China's commercial vehicles "mainly based on me, integrated innovation" has become the dominant, and the market share of self-owned brand products has rapidly increased, accounting for 60% of the domestic market.

Zhang Xiaoyu is pleased to give an example: In April last year, he led the team to participate in the exhibition tour of Chinese cars in Syria. The participating companies include FAW Group, Dongfeng Motor, Foton Motor, Jianghuai Automobile, Jiangling Motors, etc., and the models participated in the exhibition were commercial vehicles. (Heavy trucks, light trucks, and small cards) are the mainstays. These vehicles tour the cities of Damascus, Syria, and are very popular in the country. There are about 30,000 orders placed by Chinese companies. This shows that China's commercial vehicles have a strong comparative advantage in the international market. Zhang Xiaolu said that this year will also organize enterprises to participate in the "Russian Year of the China" auto show.

It is worth noting that the development of China’s automobile exports has reached an important stage. The rapid development of China’s commercial vehicle market has attracted many foreign automobile and auto parts manufacturers and operators to enter China. The increasingly "internationalized" domestic market and the continuously developing international market will naturally also face more fierce competition and severe challenges. In this regard, Zhang Shujing said that although China’s auto exports have been affected by many unfavorable factors such as the appreciation of the renminbi, rising raw material prices, and the rise of international trade protectionism, as China’s auto companies expand their experience in the international market, their ability to innovate has continued to increase. Coupled with the guiding role of the steady development of China's auto export market, China's commercial vehicle exports will continue to maintain a strong growth momentum.

High-quality, high-efficiency, well-behaved export positions Chen Qingtai, former party secretary and deputy director of the Development Research Center of the State Council pointed out that the global commercial vehicle market is huge and the demand is different. It is cautiously expected that it will undergo a period of tempering and preparation, not only “Made in China” The commercial vehicles will more and more go to the international market, and the Chinese brand commercial vehicles will gradually gain the recognition of the world.

On the other hand, the international auto market has been extremely mature and the market segmentation has long been formed. As a new entrant, commercial vehicles in China will undoubtedly encounter great difficulties and risks. It involves a series of complex issues such as the selection of export regions, legal environmental measures, market demand surveys, selection of potential users, competitors' research, marketing strategies, brand strategy, and the cultivation of sales and after-sales service agents. Whether or not an enterprise enters the international market and when it enters, it must be a major business strategy of the company, conducting in-depth investigation and research, and careful decision-making.

Chen Qingtai cautioned that exporters of commercial vehicles must not regard exports as a short-term opportunity to make money: “'Shoot a shot for a place' will block your future road.”

China motorcycle exports can be used as a guide. Chinese motorcycle companies once had to “go global” in order to expand market space, but the result of “internefaction” has not only made China’s motorcycles quickly become a “dealer”, but also made exporting companies unprofitable, and the whole The international image of the Chinese motorcycle industry has been greatly impaired, which has created obstacles for Chinese motorcycles to further explore the international market. Chen Qingtai said: “Each meal is a long one, and history cannot be simply repeated. This is something that must be paid attention to when China’s commercial vehicle exports start.”

Zhang Xiaoxuan said that commercial vehicle companies must play a comparative advantage more effectively and lay a good position for the export of automobiles with high quality and efficiency. The first is quality. There is still a certain gap in the quality of commercial vehicles in China compared with Japan and South Korea. Japan, South Korea's new car can propose 500,000 or even 1 million kilometers without failure commitments, while domestic companies can only promise 300,000 kilometers. Therefore, enterprises need to make more efforts in product quality. Second, the sales model of commercial vehicles is totally different from that of cars. Enterprises should pay more attention to the sales strategies of commercial vehicles. In addition, it is a highly profitable return that seeks to prevent products from entering the market with low-quality, low-cost images. Enterprises must strengthen brand awareness.



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