Dongfeng Tianlong Exports Iran Beiben heavy truck exports to Syria Red Rock Jie Lion exports Vietnam
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In January-July 2011, contrary to the situation of the “overwhelming gloomy†overall heavy truck market in China, the domestic heavy truck companies, especially those with “stricken†and serious self-owned brands, are in full swing, with overseas sales showing different growth rates. According to the statistics of China Association of Automobile Manufacturers, only 2,397 tractor-trailers were exported in July, an increase of 58.11% from the previous month and a year-on-year increase of 48.24%. To a certain extent, domestic car companies that are underselling sales have eased the pressure and are now operating in overseas markets. China’s heavy-duty truck companies can be described as dancing with the “wolf†– Scania, Mercedes-Benz, Volvo and other international brands. Existence, how many markets will be left for domestic self-owned heavy truck companies? Are the product layouts of overseas manufacturers in various manufacturers perfect? What is the result? In my opinion, the road to overseas development of China's heavy truck companies does not seem to be smooth.
It is understood that between 2007 and 2010, there were 182 destination countries for medium- and heavy-duty trucks in China. Although the market is extremely fragmented, the overall export destination is still concentrated in Asia, Africa, and South America. Statistics show that the current export share of these three regions has increased from 77.2% in 2007 to 97.6% in 2010. Yao Hongguang, an analyst at Huatai United Securities, believes that in the future, Asia (excluding Japan, South Korea, South Korea and India), South America (except Brazil), and Africa will remain the major markets for domestic heavy truck product exports.
Foreign market opportunities and risks coexist
First of all, the overseas expansion of domestic heavy truck companies is still in the early stages of development, mainly based on general trade. In recent years, some export destination countries have raised trade barriers and restricted the import of vehicles and parts in order to protect the development of the domestic auto industry. If Russia has a similar situation, the probability of occurrence in the future in India, Brazil and other countries is also relatively large, which makes the domestic heavy truck products in these markets have greatly increased the uncertainty.
In this regard, relevant experts suggest that companies should develop different development strategies based on the specific characteristics of different markets. If India, Russia and other large-scale demand, the country will also use the automobile as an emerging market for its pillar industries. It can avoid trade barriers by establishing joint ventures and cooperation with local companies. For some small scales, demand mainly depends on Developing countries that import products will still be a better choice by occupying the local market through direct trade.
In addition, since the beginning of this year, political turmoil has occurred in Egypt, Libya, and other countries, causing the country’s exports to fall in both countries. Experts believe that in the following, certain countries such as North Korea, Iran, Syria, and Cuba also have certain political crisis risks. Because these countries account for a large share of China’s heavy truck exports, local turmoil will have an adverse effect on the export situation. In addition to these external factors, insufficient support for overseas markets after-sales service will also bring potential risks to the follow-up development of overseas markets. 
Heavy truck companies' foreign market product area layout needs to be improved
Statistics show that the domestic top six heavy truck companies - Dongfeng, CNHTC, JAC, FAW, Futian and Shaanxi Auto have already accounted for about 75% of China's export of medium and heavy trucks. Among the six companies, according to their different export strategies, they are roughly divided into two types: CNHTC, Jianghuai, FAW Jiefang and Beiqi Foton, in their overseas operations, adopt a comprehensive marketing strategy and develop them for all countries in need. The market, therefore, the export distribution is relatively balanced; while Dongfeng and Shaanxi Auto are adopting key regional development strategies, and the export destination countries are relatively concentrated. Among them, Dongfeng mainly operates in Iran and Vietnam, while Shaanxi Auto focuses on African markets such as Algeria.
In the eyes of related parties, these two strategies also have their own advantages and disadvantages. The former can quickly expand the scale of exports in the short term, and fully bloom in the market, but there are certain limitations in brand building and after-sales service; while the latter can provide better services for local markets and establish a good reputation, but However, it is easy to lose development opportunities in other markets and face the problem of slower growth in the short term. “For enterprises, they should take appropriate measures to deepen their overseas markets based on their own resources and business philosophy. However, given that China’s overseas heavy truck market is still relatively fragmented, the market size of individual destination countries is relatively small, so at present this In this stage of development, enterprises that adopt a comprehensive expansion approach may be more likely to achieve rapid development and thus seize opportunities in overseas markets, said Yao Hongguang.
Overseas exports are affected by policies
The political risks and financial risks in overseas exports are unavoidable. This is a problem that every manufacturer is worried about. In some regions, such as the volatile situation in the Middle East and Africa, their payment risks are high, the political situation is unstable, and the credibility of the government is also low. "Orders in Africa also have certain contingencies and uncertainties. It is very likely that after the change of government, the newly established government will not recognize the orders signed by the previous government. In such a situation, companies will have no way to deal with them." There are trucks. Business people say this. Based on this, Beiyong CNOOC Overseas Markets Minister Zhang Yongfu told the reporter: “Bei Ben’s export destination is mainly in Africa. In order to reduce the risk of payment, Bei Ben usually takes the form of starting a car.â€
Product Advantages Low Price Disadvantages Lack of Core Technology
Domestic brands can only compete with foreign big brands used cars. "Today's China heavy trucks have a considerable gap in product quality and technical content compared with international heavy truck giants such as Man, Volvo and Scania. From the current perspective, China's entry into the international market is mainly based on the Middle East. Some non-mainstream countries, such as North Africa, even in developed countries such as Europe and the United States have some orders, but after all, they are a minority of the few. Domestic self-owned heavy trucks are still moving towards developing markets, but in these markets, It can only compete with used cars from high-end international brands such as Europe, America, Japan and South Korea, etc. On the one hand, domestic brands and international high-end brands still have a difficult gap in technology and quality in the competition of international high-end cars; on the other hand, international brands are expensive. The price is not easy to consume in some areas,†said Sinotruck.
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