Join Date: Sep 2007
Since 2003, some Chinese auto enterprises began to export vehicles to Russia, almost all capable enterprises like
SAIC Chery Automobile Co., Ltd., Great Wall Motor Company Limited, China National Heavy Duty Truck Group Co., Ltd, Beiqi Foton Motor Co. Ltd, Beiqi Motor Co. Ltd, China Faw Group Corporation, Zhengzhou Yutong Group Co., Ltd, Yuejin Vehicle Company Limited, Harbin Hafei Automobile Industry Group Co., Ltd., Shenyang Brilliance Jinbei Automobile Co, Ltd, Suzhou Golden Dragon Bus Co., Ltd, Zhongtong Bus Holding Co., Ltd and Hebei Zhongxing Automobile Manufacture Co.Ltd
exported to Russia and gained certain achievements. Relying on good price performance, China's auto products have developed a preferable market space in Russia.
As for the changing market environment, Xu Hai, GM Assistant of FAW Import & Export Co., said that with great varieties of products, FAW could adjust its strategies in time when changes happen so as to spread risks. FAW has basically determined the market strategy: take heavy-duty business cars and economic cars as the main direction in Russia market; take middle and light trucks, passenger cars, and micro cars as the supplementary; make the whole product family as a collaboration, take SKD assembly as the main, set up a joint venture production base, build sales service network, and launch products in the market as soon as possible. At present, the market development of FAW in Russia has entered substantial execution phase, large-scale knock-down export and local assembly will start this year. Next year there will be more assembly items, cars and passenger cars will start assembly in succession. This year, vehicle and KD export is predicted to hit 10,000 vehicles, and in the future 2 to 3 years, passenger cars will realize transition from SKD assembly to CKD assembly. FAW is targeting at a sales volume of 40,000 in Russia in 2010, and a sales value of US$0.7 billion in 2011.
No matter what kind of way is adopted to compete in Russia market, insiders said that the most important thing to do right now is to lay a solid foundation. Harbin Hafei Automobile Industry Group Co., Ltd, Zhengzhou Yutong Group Co., Ltd, China Faw Group Corporation, China National Heavy Duty Truck Group Co., Ltd, North Benz Co., Ltd and Great Wall Motor Company Limited all regard the improving of quality and brand recognition and the building of perfect after sales service system as the advantageous conditions of competing in Russia market.