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On December 4, Shaanxi Automobile Group announced that it had signed a 3,200 heavy truck sales contract with Algerian EURL GM TRADE. Among them, the first 500 heavy trucks will be delivered by the end of December this year, and the remaining 2700 vehicles will be delivered by June 2009.
When China's commercial vehicle exports were affected by the global financial crisis and entered the "winter", why did Shaanxi Automobile Group conquer the trend and achieved a rare breakthrough? In response, Yuan Hongming, general manager of Shaanxi Auto Group, said: “Because we insisted on opening up overseas markets with the concept of “best-in-class†products with excellent product quality and high quality in order to win the trust of overseas users.â€
Do not fight price wars to win users with high quality
In recent years, Algeria has a stable political situation and sustained economic development. The local government has successively initiated a number of infrastructure construction projects, including roads, railways, ports and airports, which have become the main driving force for the growth of heavy truck demand in the country. The data shows that Algeria has become Africa's second largest auto market after South Africa. In 2008, the demand for heavy trucks in Algeria is about 6,000. In 2009, the demand for heavy trucks is expected to reach 8,000, and it is expected to continue to grow.
Such a large market demand has led many heavy truck companies to pay close attention to Algeria and the competition between them has become increasingly fierce. In this environment, Shaanxi Automobile Group has an advantage in competition because of its excellent product quality.
Wang Gang, general manager of Shaanxi Heavy-duty Truck Import & Export Co., Ltd., told reporters that after diligently investigating Algeria's market, the company determined that the country’s market has huge consumer demand and can become an important market for Shaanxi Auto heavy truck exports. In order to achieve success in the local area, Shaanxi Automobile Group has made meticulous preparations. According to reports, Shaanqi Group entered the Algerian market in 2006. In October of that year, the company signed a contract with EURL GM TRADE to export 80 heavy trucks to the country.
“In the overseas market competition, we never attract customers at low prices. This kind of low-price competition is meaningless.†Wang Gang said Shaanxi Automobile first put emphasis on improving product quality and improving its competitiveness with quality. He believes that Shaanxi Automobile's SHACMAN heavy trucks are recognized by local consumers and rely on quality.
In March 2007, the Algeria East-West Highway project contracted by two companies in China was formally launched. With its excellent quality, Shaanxi Auto has emerged as a unique heavy truck supplier among many competitors. Nearly 1300 Shaanxi Heavy Truck SHACMAN heavy trucks performed well during the entire project implementation process. Shaanxi Auto Heavy Truck was recognized by other large-scale civil contracted engineering companies, laying a solid foundation for Shanxi Auto to develop the Algerian market in the early stage.
Careful service Preparation for development
After achieving initial success, Shaanxi Steam did not rush to expand its market share, but instead established a solid after-sales service network.
“We always believe that the first step in developing overseas markets should be the establishment of an after-sales service system. Only in this way can we succeed.†Wang Gang told reporters that cars are different from general consumer goods, selling a car, not only to ensure that customers The performance and configuration of the purchased product must be adapted to the needs of the local market. What is more important is to ensure good after-sales service and spare parts support.
Based on this concept, since its cooperation with EURL GM TRADE, Shaanqi Group has established sales and service networks in 14 major cities including Algiers, Oran, Anaba, and Setif in Algeria. The region has established more than 20 service stations, providing an important supporting basis for Shaanxi Auto's product development in Algeria.
Not only in Algeria, Shaanxi Auto has now formed an international market network focusing on Africa, Central and South America and the Commonwealth of Independent States. It has established 20 overseas offices, built three large-scale maintenance centers and developed nearly 200 overseas service providers. Parts supply basically covers the target market.
Wang Gang told reporters that before signing the big order, Shaanxi Automobile Group built a large maintenance center in Oran, the second largest city in Algeria, and resident engineers to provide rapid after-sales service for users. The good after-sales service quality has dispelled the doubts of the partners.
Since then, after two years of market development, Shaanxi Automobile SHACMAN brand has a high reputation in Algeria.
Yuan Hongming said: "At the end of November 2008, we sold more than 3,500 heavy trucks to Algerian users, plus heavy trucks sold from other channels. So far, the number of heavy trucks in Shaanxi within the country is nearly 10,000, which is very large. Increased the visibility and reputation of Shaanxi Auto Heavy Duty Trucks.†He predicted that sales of Shaanxi Heavy Truck heavy trucks in Algeria could reach 6,000 in 2009.