China's microcars wrestle with fierce competition in overseas markets as much as domestic

April 28, 2021


SAIC-GM-Wuling leveraged Chevrolet to enter Chile. Dongfeng Panan also signed an agency sales agreement with Chilean car dealers to export Dongfeng Xiaokang and other small pickup trucks. The "Commercial Automotive News" reporter recently learned that the top four micro-car companies in domestic sales, without exception, have locked their sights on overseas markets.

“The overseas market of mini-vehicles is very mature and there is still a lot of room for expansion. At present, the demand for Chinese mini-vehicles in the international market is between 70,000 and 80,000 vehicles each year.” Dongfeng Junan Overseas Division Marketing Manager Du Xianjun said. It is precisely the potential demand of overseas markets that domestic mini vehicle companies are eager to try. Yang Shichun, brand director of Changan Automobile International Sales Service Co., Ltd., also stated: “Exporting overseas is not forced by the pressure of competition in the domestic market, but each company consciously regards the overseas market as a major development strategy for the company.”

SAIC-GM-Wuling, the domestic micro-vehicle leader, set up an overseas business unit in 2007 to begin warming up its internationalization process. Although there is no clear strategic plan and timetable, it can be seen that SAIC-GM-Wuling is trying to do something in the overseas market.

Changan Automobile started its first mini vehicle export. Since the international market began in 1991, Changan Automobile has never stopped the development of overseas markets. Since 2007, Changan Automobile has proposed the “8882 Overseas Strategic Plan”, which means that by 2010, 8 models will be promoted overseas, including 4 commercial vehicles, forming 8 core markets, and establishing 8 overseas production bases to achieve overseas sales. 200,000 vehicles.

Hafei Automobile is also the pioneer of micro-vehicle exports. According to reports, at the end of 2000, Hafei Motors set up the Ministry of Foreign Trade, which exported about 200 vehicles in the first year, and then began to grow exponentially. Until now, it exported 30,000 to 40,000 vehicles each year. In the next few years, Hafei Motors plans to sell 30% to 35% of its total overseas sales, making exports a major pillar of business development.

The well-developed Dongfeng Xiaokang in the domestic market is also targeting the international market. According to Du Xianjun, after the company entered the micro-vehicle market in 2005, the company began to try to export in 2006. In 2006, about 5,000 micro-vehicles were exported. In 2007, it exported 10,000 vehicles. In the first half of this year, the export volume has exceeded that of last year. Total annual export volume, “Our goal is to achieve the top two domestic micro-vehicle exports in five years.”

A new competition between mini-vehicle companies will once again begin on the international stage.

Du Xianjun told the "Commercial Automotive News" reporter that although micro-vehicles have great potential to be tapped in the international market, like other commercial vehicle products, micro-vehicle homogenization is a serious phenomenon, sometimes in the international market. Several manufacturers have opened up the same market, and their level of competition is no less than domestic weakness.

“At present, the number of micro-facets in micro-vehicle products exported from China is very small, and the vast majority are micro-fabric. The major export countries are developing countries such as the Middle East and Latin America. In these regions, users purchase micro-sales for use in the manor. The transportation of agricultural products and the like are similar to the domestic microcars." Du Xianjun said.

It is understood that various micro-car companies are actively developing powerful overseas distributors to sell their own products, and set up offices in key regions to assist and urge dealers to market their sales. In the supply of spare parts, companies also require dealers to purchase enough accessories to meet the needs of the local market after-sales service.


View related topics: Commercial Vehicle Export Analysis


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