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On April 21, the China Automobile Forum was held at the Beijing Convention Center. Zhang Logistic, General Manager of the International Department of CNHTC Group delivered a speech. He pointed out that enterprises must integrate themselves into local communities, especially in countries where national sentiments are relatively strong or relatively developed to avoid trade resistance.
The following is a statement record:
Dear leaders, distinguished guests, ladies and gentlemen, Good afternoon. I am very happy to be invited to participate in this forum and have the opportunity to share with everyone the experience of integrating into the global road.
First of all, let's take a look at our upcoming car. This is a joint car that we will use at Man Auto's sales network after the introduction of Mantech at the Shanghai Auto Show last year. It will be put into mass production early next year.
First of all, briefly introduce our company's situation. The company was first established in 1956. It produced China's first eight-ton heavy-duty vehicle. In the history of our company, it should be said that there was a relatively big event. One was the signing of Steyr's technology agreement in 83 years. Seoul Technology is still the technology platform of China's mainstream trucks. In 2007, Sinotruk completed a major reorganization, and it should be said that the company has embarked on a path of rapid development. In 2007, Hong Kong was listed as the first red chip listed company in the domestic machinery industry. In 2009, Germany's Man Company acquired 25% of our shares to establish a long-term partnership. At the same time, we also introduced MAN's TGA vehicle technology. This is the sales history from the year after restructuring to the current year. Until last year, we achieved sales of nearly 200,000 heavy trucks. Last year, we produced about 160,000 vehicles because of the market decline. This is the main production facility. We have three heavy trucks and medium trucks. There are three points for light trucks with a planned capacity of 600,000 vehicles in 2015. In addition, there are two engine plants in Jinan and Hangzhou respectively, and we have our own dedicated depots. This is a schematic diagram of the domestic distribution network with more than 250 4S stores, 250 2S stores, and more than 1,000 service stations.
This is the layout of our overseas network. We divide the overseas market into 6 regions, namely the Asian and Russian Ministry, the Asia-Europe, the Asian-Australian Department, the Southern Africa and the North Africa Department. We have set up six sales areas In 24 offices, there are currently 86 contracted dealers, 23 parts warehouses, and more than 200 service stations.
Explain briefly the R&D strength of CNHTC. Our technical center is the first group of national key enterprise centers, and it is also the only engineering research center of a national heavy-duty vehicle company. It undertakes a large number of national and provincial-level scientific research projects. Including the country's 863 project, they participated in drafting and formulating some industry standards for the country. We audited more than 1,300 patent applications. This figure is also relatively high in the industry.
In the second part, I talked about the sub-sectors where the technological gap in commercial vehicles is relatively small. I think that in the relatively small gap, we mainly benefit from continuous technological progress. I think the main reason should be the main factor in four aspects. . The first is the introduction of advanced technology from the world, the introduction of Steyr technology in the 1980s, vehicle technology, and the introduction of a large number of gearboxes and other technologies, and the cooperation between Foton and Mercedes-Benz I think this is also important for our technological progress. source. With the increase in corporate strength and R&D investment, the investment in R&D by China National Heavy Duty Truck reached 1.8 billion last year. Especially after the financial crisis, I feel that Chinese companies have attracted a large number of overseas talents, which has greatly promoted technological progress. effect. The second is the gap between the automotive industry, especially the heavy-duty truck industry, and the shrinking of the world. Thanks to many well-known parts companies coming to China, China's entire vehicle companies use a large number of well-known parts in the world. Take heavy-duty trucks as an example. For example, WABCO basically built factories in Jinan. It is also specially designed for heavy-duty vehicles, and it also improves the overall vehicle technology level.
I think that our commercial vehicles can have a place in the international market and show a rapid growth. I think it also benefits from the more accurate positioning. From the perspective of product positioning, our technology should be said to be more mature and cost-effective. It is indeed more prominent. I think quality and technology should be acceptable, but the price is very low, compared with the advanced level in the world. In addition, regional positioning is still focused on developing countries and emerging markets. In terms of customers, we mainly have a wide range of adaptability. Our vehicles are more resistant to construction in China, and can adapt to relatively poor working conditions. Of course, perhaps the most important factor is price positioning. Our price positioning is extremely competitive in the world.
In addition, the reason why we can have a good performance in the world market also benefits from the country’s support for a global strategy. I have a few figures here. Between 2010 and 2011, the national export tax rebate was 1.6 trillion yuan. Another one is export insurance, which provides very great support for us to go out, because we have many countries that we should face in the export process. With a lot of risks, Sinotruk cooperated with CITIC Insurance to avoid a lot of risks. There is also a country's standardized management of automobile exports. I think it has played a big role in our production companies. Because in the past, any dealer can buy a car and then export it, and then there is no service. This has caused a very big impact on the domestic car brands. Afterwards, the Ministry of Commerce adopted authorization for export companies, which has played a significant role in regulating our market channels. Of course, we also shared the achievements of China’s economic development. This is a simple indication of inaccurate price/performance ratio. Our products are comparable in performance to Euro 3 and 420-horsepower 6×4 tractors. The gap between performance and European cars and American cars is not much, but we can see that The price to us is almost only 1/3 to 1/2 of their price. So our price/performance ratio is very obvious.
Finally, briefly introduce the overseas development strategy of Sinotruk. China National Heavy Duty Trucks attaches great importance to the construction of four systems in overseas development. The first is the construction of distribution and sales agency systems and extensive development of dealers. The second is localization-oriented production. KD can avoid some taxation. The second is to hire local people to better integrate into the local market. Again, 70% of the heavy trucks are sold to the user's hands after they have to be refitted. We only produce intermediate products. Our large number of products are modified by the refitting factories, so we are very much concerned with the development of modified cars. The second is the accessories and service system. We have established 23 parts center warehouses in the world.
In fact, the domestic market is also showing a very clear division. The international market is even more so. Different countries have very big differences. Therefore, in the process of internationalization, we have divided the market into four major parts.
The first is the breakthrough strategies of big countries. For example, the countries of the BRICS, Brazil and Russia have very large economies of scale and market prospects. The other is a moderately developed country, for example represented by countries such as Turkey and Mexico. The second is energy resource countries. For example, Indonesia, Australia. Because we have a very big advantage in terms of our mining vehicles. Then there are some blank markets. Such countries may be more in Africa.
In the implementation of overseas strategy, we feel that we should take three steps. The first step is to set up factories overseas so that we can provide differentiated products to users and get closer to users. Another is to increase the localization rate of products. Only by increasing the localization of products can we reduce the barriers to rolling water. In the end, this enterprise must integrate itself into the local community, especially in countries where the sense of nationality is relatively strong or relatively advanced. For example, a country like Russia has always been our oldest brother in industry. If it is outstanding, it is made in China. When the product is large, it will encounter a very strong rebound from the government level and the social level. In 2008 and 2007, nearly 10,000 of our trucks were exported to Russia. Now there are only less than a thousand cars. Now that it is a complete vehicle export, we have received very strong resistance from the local market. Therefore, we should implement localization in the local area and eventually integrate into the local community. The final product of the product is the local product, which may reduce these factors.
From the expatriate personnel to the investigation of the employment of local staff, this is where the local government is committed to development. Because even if the language is better and there is no local staff to communicate with the locals after all, we are now sending out staff mainly teachers, expatriates to the local training personnel, direct local customers.
This is a little bit of our international experience. Thank you!