China's auto and African markets grow together


A dump truck and a tractor were arranged neatly, and a red ribbon was written with wishes. Recently, Dongfeng Motors Zambia’s 4S shop in the capital, Lusaka, officially opened. Special representatives of Zambia’s Vice President Ezeg Vina, Minister of Transport and Communications Kapambuwam Sim and other government officials and multinational envoys arrived. congratulate. After more than 20 years of hard work, Chinese cars have gradually established themselves in Africa and embarked on a fast-growing fast track.


“The feeling of opening a new Dongfeng truck is awesome”

Zambia, like most African countries, runs mostly on used cars from Western countries. Few drivers have the opportunity to open a new car. Samson Namba was once a truck driver. He said: “I used to drive several different brands of trucks in the past, but the favorite is the east wind. The brand new Dongfeng truck feels awe-inspiring!”

In recent years, Zambia has been working hard to implement a 8,000-km road project. Economic and social development has taken place. With a good road, it wants a good car. In his speech, Karmapuwah Sim stated that high-quality vehicles and perfect after-sales services are necessary for the development of a country’s transportation. It is a pleasure to see Chinese auto companies invest in Zambia. The Zambian government will create a better business environment, ensure the investment efficiency of investors, and promote the socio-economic development of Zambia.

Although Samson Namba has been promoted to the security manager of the transportation company, he still misses the days of driving Dongfeng trucks between Lusaka and Mungu in the western city. “Manggu is more than 600 kilometers away from Lusaka, and the road is not good. There are many gravel roads along the way and it is very easy to cause damage to the vehicles. However, Dongfeng trucks have strong driving force and have a solid body and can adapt to different road conditions”.

John Richard, chief executive of Dongfeng Commercial Vehicle's southern African market, said in an interview that “Dongfeng has been welcomed in Zambia, Namibia and other countries. Let's see the potential of Chinese car brands in the African market. We will be in August this year. In South Africa also opened a Dongfeng Automobile Direct 4S shop." He said that the South African pickup market currently has four major brands Toyota, Volkswagen, Ford and Nissan, and the competition is fierce. Today, Chinese pickup trucks have a competitive advantage, such as the Great Wall Pickup. In 2014, the Great Wall pickup was exhibited as a major model in the Johannesburg Shirts Shopping Center, attracting the attention of many South Africans.

Zhai Zhijing, a business counselor of the Chinese Embassy in Zambia, said that before Dongfeng’s large-scale invasion of Zambia, Sinotruk and Shaanxi Auto have entered the Zambian market in advance and opened their respective 4S stores. At present, Chinese cars account for more than 70% of Zambia's new heavy-duty commercial vehicle market.

FAW "world car arena" stand firm <br> <br> South Africa prohibits foreign second-hand vehicles to enter, and the lack of independent brands, so here became a "world car arena." After more than 20 years of hard work, China FAW has targeted the customer groups of South Africa's small and medium-sized enterprises, and has sold nearly a thousand cars each year. Now it not only has a firm foothold, it has also attracted the attention of its peers. Wolfgang Bernhard of Mercedes-Benz Daimler, who is in charge of the truck and passenger car business, recently stated in South Africa that it wants to introduce durable and cost-effective models and compete with medium- and heavy-duty commercial vehicles such as FAW.

The story of an “old liberation” truck driving to 1.5 million kilometers in South Africa became FAW’s most powerful promotional advertisement in the South African market. The 52-year-old Adrian changed all his fleet's vehicles to FAW products. Aidean recalled, “In 2004, I bought an 8-ton truck produced by China FAW. The driver drove the unadorned car and pulled the building materials and furniture almost all over South Africa. The mileage reached 150. During this period, in addition to normal maintenance, there was almost no maintenance workshop, engine, gearbox, etc. never had problems, even if the age of the vehicle is nearly 10 years, full fuel consumption can still reach 4.5 km/liter. Like a 'workaholic', burying his head in work has never caused any trouble for his employer. It is the most durable truck I've ever seen. Now this car has been 'retired' and is on display in the showroom of FAW's Koha plant in South Africa. When I saw it again, I felt as if I had seen my own loved one and was full of respect for it."

In addition to FAW's commercial vehicle assembly plant in South Africa, this reporter has also entered the assembly plant of Beijing Automobile Manufacturing Co., Ltd. in the suburbs of Johannesburg, and Chongqing Lifan's car assembly plant in the Eastern Industrial Park in Dukkam, Ethiopia. With Foton Motor's factory in Kenya, seeing the local workers who work happily on the assembly line, let us take pride in the development of Chinese cars in Africa.

Chinese car brands still need to continue to adapt to the African market <br> <br> however, can not forget the frustrations experienced Chinese automobile travel in Africa. Zhang Jinuo, president of the China Construction Bank’s Johannesburg branch, has a deep impression. “A car manufacturing company entered the South African market in 2006. Initially, with the advantage of cost-effectiveness, it accumulated sales of more than 7,000 vehicles. After the financial crisis, agency model and risk response and other issues In the crisis, the Johannesburg branch of CCB, which is responsible for financial services, has also suffered a heavy burden."

In response, Liu Ziyao, regional sales manager of Jiangling Motors South Africa, did not say that “the financial crisis broke out in 2008 and the distributors went bankrupt. Three years of hard work saw them go into the drain. Facing this situation, JMC established the Chinese automobile brand in Johannesburg. A wholly-owned overseas flagship store has transformed itself from a traditional trading car company to a marketing car company." Liu Zixuan said that Chinese autos had previously failed to complete the supply of components and services, which resulted in a sharp decrease in consumer confidence in Chinese auto brands by South African consumers and banks, and banks did not support retail credit of Chinese auto brands. To this end, Jiangling Motors South Africa, on the one hand, actively sought the bank's credit support, on the one hand, it adjusted its strategy and safeguarded the supply chain of parts. In March 2011, Jiangling Motors became the only Chinese car brand to receive retail credit from the four largest banks in South Africa.

Hao Jianyu, executive deputy general manager of a car manufacturing South Africa Co., Ltd. believes that in the face of fierce competition, it is impossible to compete with its rivals in Africa on the basis of price advantage alone. African customers are required to provide complete commercial solutions including fuel consumption, maintenance, maintenance costs, and financial support. .

According to Jean Nuer-Sino, Senior Vice President of Dongfeng Commercial Vehicle Overseas Business, Chinese auto brands go overseas and their price, quality, comfort and after-sales service concepts are different from those in the domestic market. Chinese cars must first understand the requirements of local users for products and services. Business managers must devote more energy to market research and communication with customers.

FAW now has two subsidiaries, 15 first-tier distributors and 108 second-tier distributors in Africa covering 16 African countries. Zhang Yusheng, former general manager of a car manufacturing South Africa Co., Ltd., witnessed more than 20 years of Chinese autos' entry into Africa. He said that when Chinese cars arrived in Africa, they had no power steering, no air conditioning, and did not meet the requirements of the African market. Today, our automotive technology is no longer the same as it was 20 years ago. However, Chinese cars must continue to adapt and grow together with the African market.

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