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Old 12-01-2006, 02:42 AM   #1
chinoy54
 
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Wink China Trucks In South-east Asia

Hi to all. Newbie here. Just last year, we began importing & distributing Yuejin & Foton light trucks in the Philippines. Long dominated by Japanese name brands-Mitsubishi & Isuzu specifically, we are facing an uphill battle in our efforts to sucessfully introduce Chinese brands in the local market. Our one great advantage is price-in direct comparison, specs-wise, the equivalent Japanese model is about 80% more. I'm looking for other members who may have taken the plunge & started introducing Chinese brands into their market, or those who have some idea of how well or badly Chinese trucks are doing in their markets. Please share your experience in this. Since june, 2005, we have sold a total of 245 units, way below our target of 800 units/year. We face some quality issues especially w/Yuejin trucks-brake problems & electricals, but to Yuejin's credit, they have been very responsive regarding prompt warranty actions. Enclosing some pics of units we have sold.

Looking forward to some feedback.
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Old 12-01-2006, 08:49 AM   #2
dragin
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Welcome Chinoy.

Good luck with your new Chinese truck sales venture. Yes, there are folks here at the forum, that will give you some good input I'm sure. The North American Wuzheng rep for example.

Daimler Chrysler has just purchased a 24% stake in Beiqi Foton and so over the long term that should help you.

Yuejin's passenger car arm, Nanjing Auto, is ramping up for volume car exports so hopefully that will have a corporate spill over effect and bring quality up closer to global standards.



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Old 12-01-2006, 12:58 PM   #3
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Quote:
Originally Posted by chinoy54
Hi to all. Newbie here. Just last year, we began importing & distributing Yuejin & Foton light trucks in the Philippines. Long dominated by Japanese name brands-Mitsubishi & Isuzu specifically, we are facing an uphill battle in our efforts to sucessfully introduce Chinese brands in the local market. Our one great advantage is price-in direct comparison, specs-wise, the equivalent Japanese model is about 80% more. I'm looking for other members who may have taken the plunge & started introducing Chinese brands into their market, or those who have some idea of how well or badly Chinese trucks are doing in their markets. Please share your experience in this. Since june, 2005, we have sold a total of 245 units, way below our target of 800 units/year. We face some quality issues especially w/Yuejin trucks-brake problems & electricals, but to Yuejin's credit, they have been very responsive regarding prompt warranty actions. Enclosing some pics of units we have sold.

Looking forward to some feedback.
Welcome! Introductions of new brand-names in established markets is fun,isn't it?

Seriously, although you don't get into much detail, you have the right ideas -

Price attracts, service keeps. Instill & understand the consumer's expectations, and exceed them.

Every distributor we have is required to have at least one extra of each model for no other reason than to exchange. A customer is unhappy or unwilling to wait for a repair, or they feel it is a huge problem, we exchange trucks. It has not happened much, but you should see the customers face!

Service, service, service, service. Spend no less than 10% of gross sales on follow-up, service, talking to buyers.

Enough already, or I'll just keep going. Good Luck!
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Old 12-01-2006, 04:54 PM   #4
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thanks for the words of encouragement, guys. yuejin motors was recently absorbed into NAC in that merger? sometime in sept. w/ NAVECO, so i am hoping that we get a model shake-up. one of my biggest concerns, marketing-wise is the almost non-existent marketing support coming from our chinese principals. for instance, a list of big corporate accounts in china is not available. we can tell our prospects that yuejin & foton trucks are running in the tens of thousands in china, but we can't tell them who are using them. if i get even 2% of a fleet user w/international name recognition, say a DHL, BAYER, etc., i would very quickly put together a press kit for dealers & distributors. does anyone in this forum know of big corporations in china that have yuejin or foton trucks in their fleet?

i agree entirely w/ your strategy, wuzhang. in fact, we have set up mobile service teams to visit our fleetowners on a regular basis & solve warranty issues at the customer's service shop. we have loaners available for our dealers for their clients, & we even have a dedicated customer care specialist who does nothing but call our customers on a regular basis to monitor customer satisfaction.

speaking of customer's expectations, the one question that our prospects keep asking is-can i expect to keep your chinese truck in operation as long as my japanese truck? we are talking at least seven years here. how do you answer this question, knowing full well that longevity is not one of chinese products' strong suit.

thanks again, guys for the time & effort.
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Old 12-01-2006, 05:43 PM   #5
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Quote:
Originally Posted by chinoy54
speaking of customer's expectations, the one question that our prospects keep asking is-can i expect to keep your Chinese truck in operation as long as my Japanese truck? we are talking at least seven years here. how do you answer this question, knowing full well that longevity is not one of Chinese products' strong suit.
Two ways -

One, the drive train between our trucks in China and those imported to North America is completely different - much larger engine, overbuilt. Average life cycle acceptable in China is not acceptable in North America.

Two, we apply a ridiculously long warranty (for this size truck - commercial) 3-year/36k unlimited, with an available 10 year/200k unlimited. Why? To make that question completely irrelevant
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Old 12-01-2006, 06:00 PM   #6
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Welcome Chinoy54,

"the one question that our prospects keep asking is-can i expect to keep your chinese truck in operation as long as my japanese truck? we are talking at least seven years here."

There is a nice story here:
http://www.nanqi.com.cn/docc/news/ne...p?auto_id=1668

of a Yuejin truck bought in 1997 thats just reached 600,000 Km "without an overhaul" (major service), I think it says that it belongs to Zhen Lin Monastery.



I have not noticed many well known major companys as customers, although for their "special vehicles" one well known and significant customer is the UN (United Nations) for piece keeping activities.

If I see anything suitable then I will post it here
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Old 12-02-2006, 03:37 AM   #7
chinoy54
 
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Quote:
Originally Posted by WuzhengNA
Two ways -

One, the drive train between our trucks in China and those imported to North America is completely different - much larger engine, overbuilt. Average life cycle acceptable in China is not acceptable in North America.
thanks, wuzheng for the reply. i was afraid of that. w/ the exception of the yj1038-2.5ton payload w/ a 3.6 liter engine delivering 89ps, the other models in our yuejin line are equipped w/ small engines as compared w/japanese models, although 1.5-2.5t payload trucks are app. 70% of our potential market. north america may not be the right market to compare ours to-i was thinking thailand, vietnam, malaysia, etc. as comparable markets. maybe its time to have a serious talk w/yuejin to beef up the drive train & suspension. thanks for the tip.

thanks, windy for the news extract. i know that website, & visit it every now & then. i don't read chinese, so i just look at the pics. does it say what model it is? don't have a translator, so all i get is gibberish.
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Old 12-04-2006, 05:23 AM   #8
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Quote:
Originally Posted by chinoy54
thanks, windy for the news extract. i know that website, & visit it every now & then. i don't read chinese, so i just look at the pics. does it say what model it is? don't have a translator, so all i get is gibberish.
Chinese = gibberish?

Well try the english version:

http://www.yuejin-truck.com/html-en/....php?news_id=4

Same story although the words don't seem quite the same.

If you are stuck for a translator, you can always use google translate. It still needs translating from google translate speak but at least its not 100% gibberish!
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Old 12-04-2006, 03:37 PM   #9
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thanks, windy. the same site also had the news item of the NAC absorption of yuejin motors. some naveco people are coming to visit us this week, so we will get more info on the new direction for yuejin trucks.
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Old 12-04-2006, 06:00 PM   #10
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"the NAC absorption of yuejin motors"

I don't think thats quite what happened. My understanding is that the Yuejin Brand was one of NAC's susbsiduaries with the Nanjing - IVECO (Fiat) joint venture being a second subsiduary; Yuejin has now been merged into the existing Nanjing IVECO joint venture to form a rather larger joint venture and I suspect freeing off some cash (or at least the need to spend cash) for NAC to use on MG and allowing Yuejin to modernise its models to newer IVECO based models. To confuse things, as well as the Yuejin Brand there is a company called Yuejin through which NAC traces its roots back to the 1940's and now is part owner of NAC and all its subsiduaries.

Maybe you will be able to explain it all to us properly after your meeting!
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