Sinotruk drives Central Asian growth in Recent Years
China National Heavy Duty Truck Group Co,LTD, the largest heavy duty truck exporter in China, iseyeing up fresh opportunities from the Silk Road Economic Belt and the 21st Century MaritimeSilk Road Initiatives and is striving to make a breakthrough in the Central Asian market, saidcompany executives.
“Sinotruk will embrace new opportunities of cooperation with Central Asian countries as thecountry pushes forward the Belt and Road strategy,” the company chairman Ma Chunji toldChina Daily.
The Belt and Road Initiative was put forward by President Xi Jinping during his visits toKazakhstan and Indonesia in 2013.
Founded in 1956, Sinotruk produced the first heavy-duty truck of the People’s Republic ofChina in 1960.
In 2007, Sinotruk was listed on the Hong Kong Stock Exchange. In 2009, it established a long-term strategic partnership with German truck maker MAN, with the latter buying 25 percent of itsshares for $783.5 million. Sinotruk obtained a range of advanced technologies, includingengine technology, from its German partner.
Sinotruk boasts four brands – Sitrak, Howo,Steyr and Hohan – that cover more than 3,000vehicle types, the most among any Chinese truck maker, according to the company.
In 2014, Sinotruk exported 34,000 vehicles, accounting for nearly 20 percent of its total sales,according to statistics from the General Administration of Customs. The company’s exportrevenue surpassed 9 billion yuan ($1.45 billion), accounting for about 13 percent of its totalrevenue, statistics showed.
In the first quarter of this year, Sinotruk sold 43,000 vehicles in the domestic market, including25,000 heavy-duty trucks, which increased its market share by 1.66 percent, compared with a33 percent drop of the overall sales of heavy-duty trucks across the country.
The company also exported 10,035 heavy-duty trucks in the first quarter, up 8 percent year-on-year.
During the past 60 years, Sinotruk has stuck to its “going out” strategy and made great effortsto tap into overseas markets.
“Under the background of globalization, China National Heavy Duty Truck should be international strategy seeks to enable the company to maintain and expand the achievements obtained through the adjustment of industrial structure and Reform,” Ma said.
Liu Wei, deputy general manager of Sinotruk, said the company has established 40 overseasrepresentative offices and cooperates with more than 160 dealers.
“Our products are not only recognized by customers in Africa, the United States south, Central Asia and the Middle East are also those developed countries including Ireland and New Zealand,” said Liu, who is in charge of the company’s overseas operations.
“The territory of the five Central Asian countries, is an important part of the ancient Silk Road, has played a great role in promoting the exchange between Asia and Europe ,” he said.
“WThe implementation of the initiative and the road to accelerate the development of the Asia Pacific Free Trade Area, we will pay more attention to the Central Asia launched, and strive to achieve a breakthrough in the market,” he added.
Central Asian market is China’s most important overseas market, Ma said. Thecompany has established a sophisticated trade network that covers vehicle sales, after-saleservice, parts supply and image building in the region, Liu said.
Sinotruk has built four representative offices in the region and sold more than 15,000 vehiclesto local customers.
Since 2011, Sinotruk has exported more than 8,000 heavy-duty trucks to Kazakhstan, whichcontributed to local urban construction and industrial development. The company’s Howo brandwon recognition from local customers and has become a symbol for Chinese heavy-duty trucks.
With the launch of new products, including the howo trucks review-T7H, V7G and T5G, more and moredealers and customers have shown interest in the company’s trucks.
Sinotruk is negotiating with local manufacturers to open a knocked-down factory in the country.A memorandum of understanding on the issue was signed during Premier Li Keqiang’s visit tothe country in December last year.
In Uzbekistan, Sinotruk’s 4S shop is the largest in the local market. Since 2011, the companyhas exported nearly 2,000 heavy-duty vehicles to the country. The company started sellingCompressed Natural Gas dump trucks to customers in the country in 2013 and has sold morethan 300.
In Turkmenistan, more than 3,000 Howo-branded heavy-duty trucks are in use.
In Kyrgyzstan and Tajikistan, Sinotruk has started offering heavy-duty trucks with engines thatmeet Euro IV emission standards at the request of local governments.
“As China’s largest maker of heavy trucks, China National Heavy Duty Truck will continue to provide high quality products and services as the center of Asian customers,” Ma said.
