China Commercial Vehicles Internationalize


The market share of over 90% of self-owned brand commercial vehicles has always made it impossible for international commercial vehicle giants who are coveting the Chinese market. After passing the 50% to 50% joint venture of copying passenger vehicles and failing to import foreign brands, in 2009, the trend of external equal cooperation in the field of commercial vehicles in China has become unstoppable.

On July 15, 2009, Sinotruk and German Man Company announced a long-term strategic cooperation at the technical and capital level. Besides providing the most advanced TGA platform technology, Mann did not import the Mann brand. Both sides agreed to establish a brand new brand. .

On January 29, Foton Motors and Daimler AG’s “Commercial Vehicle Cooperation Agreement” decided to set up a joint venture with 50% of each company’s shares, but only imported Mercedes-Benz’s technology, but only used the Auman brand of Foton. Jointly explore the international market.

China National Heavy Duty Truck and Foton opened a new era of new joint ventures for commercial vehicles in China. When more people are still debating whether Chinese cars have completed the market-for-technology shift and narrowed the distance of global competition, Chinese commercial vehicles that have been devoid of attention have been It has overwhelmingly overwhelmed multinational brands and phasedly monopolized the Chinese market. Farther than the passenger car companies, Foton and China National Heavy Duty Truck Corporation have begun joint multinational companies to jointly explore the international market.

If you can use Mercedes-Benz and Mann's global sales network, China's commercial vehicles may become the vanguard of pioneering the international market. Cai Dongshu, president of China National Heavy Duty Truck, has pioneered the combination of products, services, spare parts, and networks, and will change the history of commercial vehicles in China that could only follow the Chinese engineering team to sell cars.

Monopoly 90% market share

The Chinese automobile industry originated from commercial vehicles. The earliest FAW Jiefang trucks were technical support from the former Soviet Union.

Although after the reform and opening up, many domestic auto companies began to try joint ventures and received huge profits in joint ventures, the joint venture process in the commercial vehicle sector has not been able to advance. The earliest joint venture company in the field of commercial vehicles in China - Yutong lionbus and Jinan Huawo eventually ended in failure. Simply copying the 50% to 50% joint venture model of passenger vehicles will not work in the commercial vehicle industry.

The strong multinational giants want to replicate the joint venture model in the field of passenger cars. Foreign companies mainly introduce brands and technologies, but they have repeatedly failed. The commercial vehicle companies that belong to different camps in China have started to fight for the market. The pioneering behavior of continuously satisfying the market demand has also made it possible that the market share of more than 90% of China's commercial vehicles is monopolized by independent brands. .

The first joint venture project of the heavy truck industry in China was Shandong Huawo, a joint venture between China National Heavy Duty Truck and Volvo, each holding 50% of the shares. However, this project almost completely duplicated the joint venture model in the field of passenger cars, and exported its technologies and brands to localize its high-end products.

China National Heavy Duty Power Corp. Guo Huanan believes that in this development process, the market is a key factor, because the Chinese market is still unable to accept high-priced commercial vehicles, the Chinese auto industry has been producing trucks since its establishment, FAW was established in In 1953, China National Heavy Duty Truck was founded in 1956, so excluding the price advantage, the long-lasting brand effect is also one of the factors that make China's commercial vehicles occupy a monopoly position today.

Statistics show that at present, the total number of trucks carrying goods in China is 97, of which 88 are self-owned brands, accounting for 90% of all truck brands. The domestic truck market has always been the world of self-owned brands. Its market share has remained at over 90%, and its dominant position cannot be shaken by foreign brands in the short term.

Heavy Cartier enters Europe

The cooperation between Foton and Mercedes-Benz on the surface is only an ordinary joint venture between China's commercial vehicle companies and multinational giants, but the difference is that the 50% to 50% joint venture between Foton and Mercedes-Benz, subverting the joint venture of commercial vehicles in China. History has changed the mode of importing models and brands mainly in foreign joint ventures. Zhao Jingguang, deputy secretary of the Foton Motor Party Committee, said that the joint venture between Foton and Mercedes-Benz is different from the previous joint venture model in that the newly formed joint venture company only produces one Auman brand.

An international commercial vehicle company executive told this newspaper that the entire vehicle joint venture project in the field of commercial vehicles has been difficult to succeed so far, mainly because the joint venture partners are both OEMs and are reluctant to abandon their own brands. At present, China’s Under the commercial vehicle market environment, foreign high-end products are difficult to become market-leading, which has caused special phenomena in China's commercial vehicle market.

So this time, Mercedes-Benz and Man changed themselves on the premise that it was difficult to change the market environment.

In contrast to previous joint ventures with passenger vehicles, commercial vehicle giants such as Mercedes-Benz and Mann are not simply optimistic about the Chinese market. Instead, they regard Chinese companies as their partners in the global emerging markets, combining foreign technology advantages with China. The company's cost advantage, the development of products suitable for emerging markets, and the use of foreign global sales network, to achieve the purpose of quickly occupying emerging markets.

China National Heavy Duty Truck in Iran's third world market has already reduced the sales volume of 10,000 units of Volvo a year to as low as 1,000 units. The multinational giants Mann sees both parties' ability to expand in emerging markets in the future.

In any case, it is a “quality” change for Chinese companies. Once the Futian Auman and Sinotruk brands enter the foreign global operating system, it will change the simple export model of Chinese cars and become a planned one. Internationalized strategic behavior.

Guo Huanan believes that such cooperation can shorten the process of internationalization of Chinese companies. "The cost of establishing a marketing and service network in one country is enormous. After many years of export, China Heavy Duty Truck has established a relatively complete sales and service network in a few countries."

The strength of monopolistic markets used by commercial vehicle companies has won the respect of partners and even their opponents. Today, relying on the technology and market advantages of multinational giants, the internationalization strategy of China heavy trucks has become increasingly clear.
View related topics: Joint venture hot car


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