Why is it difficult for Chinese brand car companies to sell overseas cars?
Abstract: Sales and after-sales service are the key for independent brands to build greater brand influence and higher reputation in overseas markets. Independent brand car companies must work hard in overseas sales channels and after-sales service quality. Only by persisting in cultivation can they usher in the success of the road to internationalization
according to the latest data of China Automobile Industry Association (hereinafter referred to as "China Automobile Association"), from January to May this year, China's automobile enterprises exported 316000 vehicles, an increase of 28.2% over the same period last year. Does this mean that the gradual improvement of China's automobile exports has been basically clear? Fu Yuwu, President of China Society of automotive engineering, pointed out in an interview with China Automotive News that China's auto exports are still facing considerable challenges from the perspective of various influencing factors, and the only way to go to sea and share cooperation is to cooperate. Xu Haidong, assistant to the Secretary General of the China Automobile Association, believes that although China's automobile enterprises started early and developed rapidly in building sales networks and sales channels overseas, sharing in the field of sales channels and after-sales services is a good strategy for smaller automobile enterprises or newly developed export regions
■ exporting is not simply selling cars
it is reported that due to the low investment threshold of overseas sales points, China's independent brands started early and have a large number of marketing channels. Take FAW, whose overseas business covers five large regions including Southeast Asia, Africa, the Middle East and Latin America, as an example, it has 49 overseas first-class dealers and 227 second-class dealers. Dongfeng Group plans to increase the number of overseas dealers to 912 and the number of overseas after-sales service points to 971 in the next five years
"the construction of overseas sales and service networks is of great significance and influence on the building of brands." Xu Haidong said so. If we say that in the past, our own brands were "selling cars" overseas, now we have the awareness of "selling products, services and brands". Geely Auto insiders once said in an interview with the media that to take root in overseas markets now is not simply to sell cars, but to establish a complete system integrating sales, maintenance and after-sales service to achieve systematic operations
at this stage, some Chinese automobile enterprises have achieved certain results through joint ventures and cooperation with local dealers. For example, Chery has cooperated with Syrian dealer alburouj around 2001, making Syria the best performing market for Chery in the Middle East
■ cooperation can strive for greater voice
unlike domestic car sales, overseas dealers can act as agents for sales and after-sales services of multiple brands at the same time. For example, Russia "yilito" is one of the first local dealers to act as an agent for Chinese independent brands. Previously, it has been acting as an agent for the sales business of Great Wall Motors and has begun to cooperate with Chang'an in recent years
because of this, Chinese auto brands have "suffered heavy losses" in overseas sales. Xu Haidong revealed that in the early days of Chinese car companies' opening up overseas business, local dealers negotiated with a number of Chinese car companies separately, causing their own brands to fall into vicious competition for partners, reducing their own profits and hurting the interests of other Chinese car companies. "If China's car enterprises could cooperate with each other at that time, they would not give each other an opportunity." Xu Haidong suggested that if the local sales scale of Chinese auto enterprises is small and the local dealers are too strong, Chinese auto enterprises can consider cooperating with foreign local dealers to negotiate and strive for a greater voice
Fu Yuwu stressed that internationalization has always been the weakness of China's automotive industry. At present, the export scale of more than 800000 vehicles in China is extremely disproportionate to the current status of a large automobile production and marketing country. An important measure to change the current situation is to readjust the position of the oil needle, which is to carry out sincere cooperation and go to sea together. Fu Yuwu suggested that independent brand car enterprises should support each other overseas, orderly develop the international market and improve the after-sales service level of products
■ industrial parks may be feasible
with the in-depth promotion of the "the Belt and Road" initiative, China's automotive enterprises have ushered in a broader space for development, and are also expected to carry out cooperation in the automotive field with more countries. D) the fluctuation range of power supply voltage should not exceed ± 10% of the rated voltage. For this part of emerging export markets, Xu Haidong suggested that independent brand automobile enterprises should unite to jointly build dealer networks, reduce development risks with scale effect, and maximize sales profits at the same time
Xu Haidong said that the establishment of China's automobile industrial parks overseas is conducive to the development of automobile enterprises overseas, and the vehicle weight has not been reduced by 10% compared with that in 2015; Focus on the development of ultra-high strength steel and advanced high strength steel technology, and complete the experiment in one time. Whether it is in the production capacity cooperation, or in the marketing field, or even in the storage of accessories, it is of great benefit. "When carrying out maintenance and other after-sales services in overseas markets, the timely supply of accessories is extremely important, especially for commercial vehicle users. In order to shorten the supply cycle of overseas accessories as soon as possible, it is particularly necessary to build a storage warehouse in the local area. The construction of the industrial park is expected to realize the centralized storage of accessories, and even hope to borrow from each other, providing more convenience for mutual assistance between vehicle enterprises." Xu Haidong said, "Chinese government departments and relevant institutions should provide financial, policy, communication and coordination support for auto enterprises in establishing overseas auto industrial parks."
sales and after-sales service are the key for independent brands to build greater brand influence and higher reputation in overseas markets. Fu Yuwu stressed that independent brand car enterprises must work hard in overseas sales channels and after-sales service quality. Only by persisting in cultivation can they usher in the success of the road of internationalization
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