Joint venture in the field of medium and heavy trucks: China presses hard on foreign concessions


"The future of China's high-end truck market will be dominated by the products of importers and joint ventures." Lu Botian, president of Volvo Truck Greater China, gave a voice to his reporters.

Recently, news came from Volvo that Volvo will develop new low-end truck series for emerging markets such as Asia, South America and Africa, and it will be introduced to the market in the next few years.

While seizing the high-end market with imported products, and breaking through the low-end market in a joint venture, this is almost an “expanding” plan that is recognized and being implemented by each multinational truck company. For this reason, some of them even abandoned the production of their own branded products and gave up labeling their own joint venture products.

Chinese domestic trucks have always played a major role in the market. Today, with the improvement of economy and improvement of product technology, they have to find a strong foreign partner to break through the technical bottleneck. However, the premise of cooperation is to cultivate their own "son." This seemingly "need to get" cooperation will bring changes to the future industry structure of China's heavy trucks. What kind of threat is concealed in the victory appearance of "China's entry into foreign countries"?

China is pressing harder and harder at the beginning of the 1980s, and China has begun to establish joint ventures with trucking companies and parts and components companies in Western countries such as Europe and the United States. The most eye-catching initial joint ventures here are Iveco, Renault, Mercedes, Steyr (Manman Enterprises) and Tatra. Follow-up auto parts creators have also established joint ventures, including Eaton, ZF, Cummins Engines, ArvinMeritor, Bosch and Iveco subsidiaries.

In the past decade or so, under the increasingly severe policy pressure, China's heavy-duty truck companies have again set off a round of technological development and introduction of the climax. Manpower, Mercedes-Benz, Hino, Volvo, Navistar, Duff, and even modern heavy trucks, which have always been technically mediocre, are trying to gain a share of the heavy truck industry in China.

In this joint venture, the joint venture model represented by CNHTC, Futian, and Dongfeng was praised by the industry. For example, the joint venture between Sinotruk and German Mann, Beiqi Foton and Mercedes-Benz is not a simple peer-to-peer investment, but focuses on cooperation in the field of technology and co-founding new brands to meet the needs of China and Other emerging markets. Dongfeng even set a new joint venture stock ratio of 55:40, refreshing the history of joint ventures in China's medium- and heavy-duty trucks. As a result, it declared to the outside world that it had a stronger say in cooperation.

Foreign companies have repeatedly retreated domestic passenger cars, trucks and other areas, still dominated by their own brands. For a long time, domestic and foreign investment in domestic commercial vehicles has not found a mature model. The reason is that the joint venture brand introduced by foreign companies is not suitable for the Chinese market. For example, Jinan Huawo, a joint venture between China National Heavy Duty Truck Group and Volvo Group, has a domestic model price that is about three times that of the local brand, which is not acceptable for China.

After staggering for several decades, these multinational truck companies finally compromised with China's national conditions. Obviously, the joint venture model of simply replicating passenger cars does not apply to commercial vehicles. Ultimately, they negotiated with local domestic partners to resolve the law and repeatedly lowered their own. The bottom line is no longer dedicated to importing products or even brands.

The reason why multinational companies are so forbearing is to enter this market, which is full of huge growth space. Whether it's importing or joint ventures, they know they are strong enough to win the final victory. "Although the total number of imported trucks in the Chinese market is very limited, the Chinese logistics industry in the transition and upgrade period has higher demands on the manufacturers in the industry chain, and their requirements for trucks are more comprehensive and mature."

“The operation of Chinese users is in line with international standards and the speed of convergence is very fast. According to the data from the Science Forecasting Center of Chinese Academy of Sciences, the future development of China’s logistics industry will be better than other industries, and the increase will continue to be in double digits. These are all enhanced. Volvo Trucks' confidence in China's grand exhibition.” Lu Botian expressed to reporters with confidence.

Joint venture chess puzzles These advanced multinational companies with advanced technology will join in the future, and this will enable China’s heavy trucks to upgrade their overall technical standards. The previous joint venture in China can fully prove this point. Sinotruck’s stakeholders are also concerned with these years. Mann sighed with the many changes in product quality and company management that came with the cooperation.

With the upgrading of technology, the industrial structure of medium-heavy trucks in China will change, and the proportion of joint venture products will gradually expand. "The future competition in the truck market will be a competition between high-quality products." Industry expert Yang Zaiyu said.

So, at the moment of “who is in charge”, do these local heavy truck companies have the strength to call these “master foreigners” and grab their shares in the high-end market? In this regard, some people in the industry expressed concern that although Chinese companies hold onto their own brands, the multinational companies still use assembly technology as their mainstay and are not willing to localize their entire vehicle products in China. Still hard to master the core technology, still have no right to speak. In the introduction of technology, most of China adopts the form of imported key equipment, complete sets of equipment, and production lines. Heavy-duty hardware is introduced to lightly absorb and absorb. The result of the introduction only has the corresponding production capacity and technology solidified in the equipment, and it is relevant to driving China. The effect of industrial technology upgrading is not great.

Choosing a joint venture is a move that domestic heavy truck companies have to overcome to overcome technological bottlenecks. The keen insights of policies, the digestion and absorption of new technologies, and the integration of old and new technologies are the joint ventures that these local companies can win. key.

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