Chinese brands VS foreign auto giants

Chinese independent auto brands dominate its heavy-duty truck market. Nevertheless, the market is under increasing pressure recently. Following the strategic cooperation agreement between SINOTRUK and GERMAN MAN GROUP, commercial vehicles made by GUANGQI HINO MOTORS are formally sold in Chinese heavy-duty truck market on September 22, 2009

GUANGQI HINO MOTORS 700-series heavy trucks actually have 8 kinds of models and 28 kinds of specification and all are equipped with the engine made by HINO.

Compared with Chinese passenger car market dominated by foreign auto brands, its commercial vehicle market including heavy-duty truck market is dominated by Chinese independent auto brands such as DONGFENG MOTOR CORPORATION, FAW JIEFANG AUTOMOTIVE COMPANY,LTD., DONGFENG LIUZHOU MOTOR CO,LTD and FOTON MOTOR GROUP.

R&D capacity and manufacturing process of Chinese carmakers listed above are gradually keeping up with foreign auto giants. However, prices of heavy trucks made by Chinese enterprises are only one fourth to one third of those made by foreign auto enterprises. As a result, Chinese carmakers can not have obvious advantages over their counterparts. At present, Chinese heavy-duty truck market is supposed to be the last piece of cake for area of the commercial vehicle. Since the beginning of 2009, foreign automobile manufacturers have invested more in Chinese heavy truck market.

Firstly, FOTON MOTOR GROUP signed a joint program with Daimler-Benz, the two sides agreed to give priority to FOTON’s heavy truck products in the process of strategic cooperation. Not long ago SINOTRUK and GERMAN MAN GROUP also reached an agreement .They would start to cooperate in areas including the manufacturing of entire vehicles .Manufacturing, quality control and sales and after-sales service of Europe engine 3, Europe engine 4 and Europe engine 5 . Additionally, FAW also signed a commercial vehicles joint program with GM late last month and it is said that Dongfeng and Volvo Car Corporation will restart their negotiations again.

For Chinese independent brands heavy truck enterprises, foreign auto giants including Benz and Volvo are not so competent, because the previous practice has shown that in Chinese heavy truck markets Chinese heavy trucks somewhat have significant advantages thanks to their good quality and cheaper price. However, the new round cooperation of Sino-foreign joint ventures have taken on some new characteristics: mainly concentrate on localizing the advanced foreign technologies and to introduce heavy truck products which can combine competitive advantages of both side into the Chinese car market, which definitely let the local enterprises feel more pressure.

“In order to improve the competence , GUANGQI HINO MOTORS 700-series heavy trucks have considerably improved the level of domestic production. We have redesigned 840 kinds of auto parts and assemblies, accounting for about 80% of the total number of the parts and assemblies ,”said Li Shao , executive vice general manager of the company ,

Meanwhile, GUANGQI HINO MOTORS also introduced the Japanese 3S store sales and service model to meet its customers' demands so as to improve its competence in this area. In fact, Chinese independent brands also need to improve its after-sales service in the future.

GUANGQI HINO MOTORS was found on November 28, 2007. (Translator: Qinghua Wade)

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