Multinational auto companies take advantage of the Chinese market to counterattack the international market

In recent years, multinational auto companies have paid more and more attention to the Chinese market. In addition to the giants of multinational commercial vehicles such as Daimler and Mann, they have rushed to joint ventures, and Sino-foreign joint ventures have also deepened. Does this mean that joint venture products in China can not only help foreign companies gain a share in the Chinese market, but also help them expand their business in other markets?

It is understood that General Motors will sell Chinese-designed minivans in India starting next year. The Chevrolet logo will be on board. It is reported that the introduction of the Indian market is similar to the "Wuling Hongguang" and "Wuling Hongtu" two kinds of small multi-function cars. GM hopes that this move will help it to occupy more markets in India where the economy is rapidly developing.

“India's small commercial vehicle market is very big, but GM has not yet entered because there is no product,” said Matt Tsien, vice president of SAIC-GM-Wuling Automotive Co., Ltd.

“There are many similarities between the Chinese and Indian markets. The slight improvement of mature products in China has made up for the lack of GM's lack of suitable products. It has also saved time, manpower, and capital investment for the development of new products alone, enabling faster development. Emerging markets.” The person in charge of the JAC Commercial Vehicle Company told the reporter.

Complementary advantages to a certain extent, so that both sides can get more profits through deeper cooperation. “Everyone felt that Mann’s products were too high-end and complex, or that CNHTC’s products were too simple. Now we can complement each other to meet the needs of users.” Man Group’s global CEO George Pachta Rehfin is The new brand launched by the cooperation between MAN and CNHTC was released at the time of the announcement. In addition to being sold domestically, Zundaka will also export its logo to the international market with the "SITRAK" logo.

"Generic's taking products produced in China to India's sales is a win-win situation. China can use foreign brands' influence and channels to expand exports, while foreign companies can enter the small-scale commercial vehicle market that has not entered before." Yang Aiguo, deputy secretary-general of the Automotive Subcommittee of the Electrical and Mechanical Products Import and Export Chamber of Commerce, analyzed: “The production and then export in China will certainly take into consideration policy factors and cheap labor resources, raw materials and other resource factor prices, while also avoiding fierce competition in the domestic market. ”

According to report, no matter whether it is a new brand launched by Sinotruk and Mann, or a medium- and heavy-duty card company established by cooperation between Foton and Mercedes-Benz, or a joint venture established by JAC and Navistar, the joint venture products have export plans.

“As far as I know, the resources of the two parties can be shared. Futian Auman can use the Daimler-Benz sales and service network for heavy trucks to sell internationally, and Futian provides production capacity guarantees.” Vice President of Beiqi Foton Motor Co., Ltd. Manager Wang Xiangyin once stated this way.
"This may also be a remedy for the high cost." SAIC Iveco Hongyan related sources said that the high cost of labor for multinational brands in their own country has, to a certain extent, hindered their expansion in the international market.

The development of China's commercial vehicles through a period of time has a relatively high degree of autonomy. Whether it is the government or the enterprises, it is also stronger in the Sino-foreign cooperation negotiations. “The Chinese government now emphasizes the development of independent brands, and foreign companies must adopt a curve strategy in order to enter the market, through the joint venture between the two sides to produce relatively low-cost high-end products.” Yang Aiguo said. This self-owned brand with a foreign investment background is more easily accepted by the Chinese market, and the lower-cost higher-end products also help the two parties to explore the international market. “China's human resources and investment environment are very attractive to the outside world, and there are also industrial transfer considerations in developed countries.” SAIC Iveco Hongyan related sources, the developed countries tend to transfer the polluting or labor-intensive industries To developing countries and countries in the third world, "they will have higher profits and less pollution to their own countries."

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