Auto Show: Sinotruk, Great Wall Explore Slow, Fast Roads Out of China 车展：重汽、长城各显神通开辟海外市场

By newsdoug on April 25, 2011

Sinotruk takes slow approach to exports I’d like to start the new week with a couple of bits from the Shanghai auto show that reflect a prudent and a more dubious approach to exports by two major Chinese vehicle makers. First the smart way, which was on display by truck maker Sinotruk (HKEx: 3808). I suspect the company’s cautious approach comes at least partly from its ties to Germany’s MAN (Frankfurt: MANG), which owns 25 percent of the Chinese truck maker. The China Daily reports the pair have just unveiled their first jointly developed truck, with plans to begin mass sales next year. (English article) But of the 200,000 units targeted for annual sales by 2018, just 40,000 would be for export — a modest goal considering this product should be well received, especially in developing markets. By comparison, Great Wall Motor (HKEx: 2333), a mid-sized player in China, plans to boost sales five-fold by 2015, while Great Wall zips onto world stage with a third of those coming from overseas markets as it builds a series of plants in places like Bulgaria, Brazil, Turkey and Venezuela. (English article) I have no idea where Great Wall is getting the money for such a rapid expansion; but considering their lack of overseas experience and only a modest reputation at home I suspect this plan stands a big chance of failure — if it ever even materializes.

Bottom line: Sinotruk will make steady roads into overseas markets through its joint venture with MAN, while Great Wall’s aggressive overseas expansion will face numerous obstacles.

我们来谈谈上海车展的事吧。从此次车展可以看出，中国两家主要汽车生产商对出口问题采取了截然相反的态度。首先是中国重汽<3808.HK>的聪明之道。我估计，这家公司谨慎的姿态部分来自於持有其25%股份的德国曼公司<MANG.DE>。《中国日报》报导称，两家公司刚刚推出首款合作研发的卡车，即将於明年开始大规模销售。但在其2018年之前年销售额 20万辆的目标中，只有4万辆用於出口。这个目标显得异常低调，尤其考虑到这款卡车应该在发展中国家销路不错。相比之下，中型汽车生产商长城汽车<2333.HK>则打算在2015年前销量增长四倍，其中三分之一来自海外市场。长城汽车计划在保加利亚、巴西、土耳其和委内瑞拉等地建立一系列工厂。我不知道长城汽车要想实现如此迅速扩张，钱从哪来。但考虑到他们缺乏经验，在国内口碑一般，我估计这个计划失败的可能性很大。

一句话：重汽在通过与MAN的合作，稳步打开海外市场。长城在海外激进的扩张可能面临诸多困难。

Enjoy this blog? Please spread the word :)