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Expanding exports has become an important strategy for many domestic commercial vehicle companies to carry out structural adjustments and increase returns. In the new international economic environment, how can Chinese commercial vehicle companies "go out" better? Six experts from Vietnam, Iran, Algeria, South Africa, Syria and Egypt made three suggestions.
Recommendation one:
Improve technical content is fundamental
Six foreign experts agreed that Chinese cars are very competitive in the local market. However, due to the insufficient quality of products, local consumers are left with the impression that they are not cheap, which seriously affects their future market development.
Iran is one of the important markets for China’s automobile exports in the past two years. Iran’s Jalal Hashmi has advised Chinese companies to export trucks and buses to Iran. "The Iranian demand for trucks is about 1 million to 1.2 million vehicles. In addition, the government attaches great importance to the development of public transportation." Hashmi said, "We have our own automotive industry, so we do not encourage the import of low-tech vehicles. Current Chinese companies that have developed well in the Iranian market have high technical content. For example, Suzhou Jinlong has exported more than 400 BRT buses to Iran."
Todd, the South African National Bureau of Standards, suggested that from the perspective of establishing a high-end brand image, Chinese auto companies should export vehicles that meet Euro III and even Euro IV emissions standards to South Africa. "Although South Africa is now implementing the Euro II emission standard, vehicles with higher emission standards can effectively enhance the company's brand image and increase product pricing."
High-tech content can sometimes bring "additional" benefits to businesses.
"If the import vehicle's emission level exceeds the Euro II standard, we will not conduct additional tests on the product during the audit," said Wu Taixiong, deputy director of the Department of Motor Vehicle Quality at the Ministry of Transport of Vietnam, who is currently implementing the EU II emission standards, vehicles with higher emission levels can enjoy some policy preferences.
In addition to the product itself, government departments in many countries are paying more attention to the consistency of production of imported products. In the actual operation process, the phenomenon of China's commercial vehicle companies failing to pass the production consistency check of the exporting destination countries or failing to pass the local testing based on the European standards system may result in the loss of orders or even being expelled from the market.
Recommendation two:
Good after-sales service is the cornerstone of success
The reporter learned from the interview that providing complete after-sales services is no longer a “plus item†for export trade, and some countries have included this content in their business contracts.
Hashmi told reporters that according to the provisions of the Iranian government, foreign companies must specify after-sales service agreements in contracts signed with Iranian companies for a period of 10 years. Without this document, the contract could not be approved by the Iranian government. He said: “In Iran, it is not enough to sell the car and it is necessary to provide long-term after-sales service. The relevant departments conduct spot checks every year, and companies that do not meet the requirements of the agreement will be disqualified for related operations.â€
Rus Church, the Minister of Electronics of the Arab Standardization and Metrology Organization in Syria, suggested that if Chinese commercial vehicle companies want to improve their competitiveness, they should further extend the free warranty period of vehicles. “Consumers in many cities have expressed their willingness to purchase Chinese cars, but the high maintenance costs and the inconsistencies in quality have affected sales,†he said. “Syrian consumers have two decisive factors in choosing a car: the warranty period of the car. And the price of after-sales service accessories.Now, manufacturers in many countries are increasing their after-sales service, promised free warranty period ranging from 1 to 5 years.Chinese auto companies can only maintain and expand their market share if they actively follow up. â€
The chairman of the Egyptian Automobile Supplier Association, Tafik, said that Egyptian consumers do not have strong consumer preferences for car brands in different countries, but they hope that they can be repaired in a timely manner wherever there is a problem with the vehicle. After-sales car companies will not be able to obtain further development.
Recommendation 3:
Finding the characteristics of countries is the key to opening up the market
Several foreign experts have reported that foreign companies that have developed in the area have not yet launched models designed specifically for the local market. They hope that Chinese auto companies can provide products that are more in line with local characteristics.
Tafik told reporters: “We need to tailor-make models for the Egyptian market. For example, there are now 18,000 to 20,000 special-purpose vehicles in demand each year, but no company specializes in developing this market. Another example, microscopy is in Egypt. On the one hand, it has been widely used in long-distance passenger transportation, and has imposed higher requirements on the performance of vehicles; on the other hand, it can be converted into various special vehicles such as court vehicles and food-delivery vehicles. Wait."
Ruth Church agreed with Tafik. He said: “Chinese auto companies must understand the culture of the destination country or region. In Syria, the consumer culture is different in each province and even in different cities. The demand for vehicles is different. The products of Chinese auto companies must be able to meet Different needs."
According to Ruth Church, two years ago, Syria imported 600 medium-sized passenger coaches of the Xiamen Golden Brigade, which was highly praised for its conformity with local customs. In order to resolve the public transport crisis in Syria, the local government is preparing to import thousands of similar medium-sized passenger vehicles in the next few years. He hopes that Chinese companies interested in entering the Syrian market will conduct research in advance.
Governments such as Algeria encourage the use of natural gas as fuel for vehicles. Therefore, LPG vehicles or CNG vehicles are popular in the country. According to Edin of Algeria, “LPG vehicles are currently the mainstream models in China. CNG and other models are expected to be the focus of next steps. The government plans to give subsidies to car buyers.