In the face of continued weakness in the commercial vehicle industry caused by weak terminal demand, SAIC chose to break through to overseas markets. Following SAIC Motor’s announcement of a joint venture with Thailand Chia Tai Group to enter ASEAN, overseas plans for SAIC's own-brand commercial vehicles were also announced.
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On December 9, Lan Qingsong, general manager of SAIC Commercial Vehicles, told reporters that MAXUS Chase plans to double its overseas exports to 3,500 to 4,000 vehicles next year. In 5 years overseas sales will reach 20% of company sales.
Coincidentally, the reporter learned from the joint venture between SAIC and Iveco that the company’s own-brand commercial vehicles are also actively expanding overseas markets.
SAIC Iveco Hongyan (hereinafter referred to as “Red Rockâ€) has achieved an export volume of over 1,000 units in the “12th Five-Year Planâ€, while the Yuejin brand of Nanjing Iveco (hereinafter referred to as “Nanweikeâ€) exports nearly 300 units per month. At the same time, it is planning to introduce products that are more adaptable to the international market and expand the scale of “borrowing to seaâ€.
As a latecomer to the commercial vehicle market, SAIC Motor’s total commercial vehicle fleet is less than 200,000 units, which is still far behind the scale of SAIC Motor’s “12th Five-Year†and 500,000 commercial vehicle fleets. The expansion of overseas markets will help SAIC to transfer domestic Market pressure has successfully achieved the “12th Five-Year†target for commercial vehicles.
Commercial Vehicles Achieve Overseas Breakthroughs
This reporter learned that after MAXUS Chase entered Australia for the first time, it was planning to open up more developed markets. After successfully entering markets in the Americas, Asia, Africa, and Oceania, MAXUS Chase plans to enter the European market.
"The goals of the future will surely enter the markets of developed countries including Europe." Lan Qingsong told reporters. MAXUS Chase has classified the national market into three markets, namely the potato market, the chicken market and the national market. Potato market and tasteless market is a relatively low market for export entry thresholds. The market that makes more money is called the potato market. The market that makes money more difficult is called the chicken market. In the overseas development strategy of MAXUS Chase, it first entered the potato and chicken market, and finally entered the developed markets.
However, as of January 1, 2011, Europe has already implemented the “Europe 5,†the world’s most stringent environmental protection standard. The implementation of Euro 5 has caused many models including Japan and South Korea to stop selling in European countries. It also became the threshold for MAXUS Chase to enter Europe.
"In order to enter the European market as soon as possible, the current MAXUS Chase supplier Shanghai Diesel Engine Co., Ltd. has been in full swing to develop the engine to meet the European five emission standards." Lan Qingsong revealed.
In Nanjing, which is more than 200 kilometers away, Nanjing Iveco is also working hard for overseas markets. In 2006, after nearly 50 years of Yuejin brand entered Nanjing Iveco, both shareholders are undergoing a “genetic recombinationâ€. Yuejin borrowed Iveco's mature domestic technology to achieve a significant increase in the quality of Yuejin. At the same time, more than one billion investment was launched. Yuejin "beyond" high-end light trucks.
This reporter learned that high-end light trucks will rely on Iveco's 1800 sales outlets worldwide to achieve "borrowing to the sea." And Iveco, another joint venture company in China, SAIC Iveco Hongyan, is also expanding overseas market efforts. Recently, more than 200 Hongyan vehicles were shipped from Shanghai Port and exported to Africa. After this export delivery, there are more than 600 Hongyan vehicles that will be exported to the rest of the world. It is estimated that more than 2,000 Hongyan heavy trucks will be sold overseas.
Iveco became SAIC's overseas promoter
The strong contrast between domestic and foreign markets has made more and more car companies aware of the urgency of developing overseas markets. Shaanxi Automobile Group's heavy truck industry experienced a decline of more than 30%. Through the export overseas market, it achieved a “slipâ€, with a decline rate of only 16%. China National Heavy Duty Trucks, which had the largest decline in sales volume in the domestic market, also relied on the sharp increase in sales volume in overseas markets to “stopâ€. As of August, China National Heavy Duty Truck's export orders have exceeded 20,000, a growth rate of more than 36%, ranking first in the domestic heavy truck industry. In addition, Liberation, Beiben, Futian, Jianghuai and other overseas markets performed equally well.
As for SAIC's commercial vehicle business, the products of the future Iveco joint venture will become one of the main products of SAIC's overseas market.
Since this year, Iveco has been busy shutting down the factory in Ulm, Germany, while busy looking for new opportunities in China. On September 29, Iveco (China) Commercial Vehicle Sales Co., Ltd. (hereinafter referred to as "Iveco China") with a registered capital of 50 million yuan was formally established. The reporter learned that in the Iveco China strategy, part of it is to increase the export volume of the two joint ventures in China from 8,000 in 2011 to 80,000 in 2016.
In the business structure of SAIC's commercial vehicles, most of the future growth comes mainly from Yuejin trucks. "The SAIC Commercial Vehicles achieved 500,000 vehicles in the 12th Five-Year Plan, of which 300,000 were contributed by Nanjing Iveco," Nanjing Iveco-related personnel told reporters. At present, Nanjing Iveco has a total sales volume of about 150,000, including about 40,000 of the Iveco brand and about 11 million Yuejin brand sales. It is planned that by the end of the “12th Five-Year Planâ€, Yuejin will increase to 250,000 vehicles.
In order to realize the goal of rapid growth, the reporter learned that in addition to increasing the investment in Yuejin products, both shareholders are actively exploring the expansion of their overseas markets. The establishment of Iveco China directly promotes the implementation of SAIC's commercial vehicle strategy.