Chinese veteran car companies aim at the international market


42 fire engines exported to Uganda, 20 Hongqi H7 sedan donated Fiji, Weizhi V2 and V5 models were listed in Russia... This year, China FAW Group Corporation continued to accelerate the expansion of overseas markets, this old Chinese car company “goes out The pace of the pace continues to accelerate.

FAW Jiefang Automobile Co., Ltd. is located in Dongfeng Street, Changchun City, and enters the company's office. Wang Lizhi, general manager of the company, is discussing with him the layout of the market.

“Not long ago, our company’s Qingdao branch just exported 42 fire engines to Uganda. The vehicles were purchased by the Ugandan government.” Wang Lizhi introduced. This is also the reason why Uganda has purchased the company's products again since last November. According to the Ugandan government officials, they were very satisfied with the batch of products and expressed their willingness to continue cooperation with FAW.

China FAW Group Corporation, established in 1953, manufactured China's first liberated brand truck, the first Dongfeng brand sedan and the first red flag limousine. In recent years, while developing its domestic market, FAW Group has also actively expanded overseas markets.

In May this year, FAW held a listing conference in Moscow, officially introducing FAW Weizhi V2 and Weizhi V5 models to the Russian market. This is also the new layout of FAW's products in the Russian market following the listing of the Pentium B50 model on the Russian market last year. Statistics show that the current Pentium B50 models have sold more than 2,000 vehicles in the Russian market.

In February 2012, FAW Group started construction at its production base in Nelson Mandela Bay, South Africa. The base will invest about 500 million yuan and will reach an annual output of 5,000 trucks after completion.

“FAW Group has already established sales outlets in more than 30 locations in Africa and established overseas production bases, which will solve the problem of long product delivery cycles,” said Jin Yi, Deputy General Manager of FAW Group.

Experts in the industry analyzed that after the financial crisis, the global automobile industry structure changed. China has become the world's largest automobile production and sales country. The Chinese market has become the main battleground for multinational car companies. The opportunities for Chinese auto companies to invest in overseas factories are also increasing. Take 2012 as an example, China's auto exports exceeded 1 million for the first time.

It is not always easy for China's veteran car companies to develop overseas markets. In particular, there is a big gap between brand management and international brands. In addition to frequent encounters with local technical barriers and trade protection issues, the vicious competition among some Chinese brands has also occurred from time to time, which has reduced the overseas image of Chinese auto brands.

Chairman of FAW Group Xu Jianyi also stated that the current overseas market of FAW Group has not yet reached a scale and its business model is relatively simple. FAW's own brand lacks visibility in overseas emerging markets, and it does not have strong understanding and adaptability to overseas markets. System protection and network Construction and human resources will continue to be strengthened.

Entering the “Twelfth Five-Year Plan”, FAW Group has formulated its overseas strategic goal of going global, and South Africa and Russia are the first major bases to invest in construction. At present, FAW Import & Export Co., Ltd. and China-Africa Development Fund jointly established FAW Africa Investment Co., Ltd., which is responsible for the operation of automotive and investment businesses in Africa.

In view of Wang Lizhi, in recent years, the strategic transformation of FAW Group in the expansion of overseas markets has been evident. It is developing from order-based production to development-based development. Unlike previous single-sale vehicles, the company is now more focused on brand building and is gaining more overseas market share by building distribution channels and improving after-sales service quality.

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