Difficult to enter the European market, China's export focus to South America


Compared with the overwhelming domestic automobile market, China's auto export market can be described as desolate. According to customs statistics, in the first half of this year, China's total exports of automobiles were 154,000, a decrease of 57.4% compared with the same period of last year, and a value of US$2.15 billion, a decrease of 53.4%. The export market, which brought lucrative profits to self-owned car makers, has become a drag on corporate profits.

However, this situation is ushering in a turnaround. “Since August, domestic auto exports including Great Wall Motor have seen signs of recovery, and the decline rate has been narrowing compared to the previous month,” said Shang Yugui, deputy general manager of Great Wall Motors . At present, domestic auto companies have been exploring the international market further. With active preparations, once the economic environment improves, the recovery of export markets is just around the corner.

European market barriers

It is understood that in the traditional Chinese automobile export pattern, the African and Southeast Asian markets occupy a very high proportion, and the development of the European and American markets has been faltering due to strict access restrictions.

In March this year, Brilliance Junjie suffered a "scattered" evaluation of the ADAC (Global Automotive Club) crash test in Germany. The industry generally believes that the "scattered" rating is related to ADAC's improvement of relevant standards. This shows that the EU is using various strict policies to restrict the increase of industry standards and other non-trade barriers to crowd out foreign competitors. In addition to Brilliance, Chery, Lu Feng and other domestic automakers of the brand suffered bad reviews in the collision test in Europe, and a series of “collision doors” have a negative impact on Chinese cars.

However, in recent days, Chinese car companies are entering the European and American markets are ushering in some opportunities. On September 8, Great Wall Motor Co., Ltd. announced that the company’s four vehicles passed the WVTA-Whole Vehicle Type Approval (WVTA-Whole Vehicle Type Approval) and became China’s first self-owned brand auto company with unrestricted free sales rights in the EU countries.

"This means that Great Wall Motor has already eliminated technical barriers in the EU market and can freely sell in EU countries." Shang Yugui told reporters that this certification is also recognized by the Middle East, South Africa and South America, and all other EU regulations. Countries recognized.

Previously, only Brilliance Automotive entered the Western European market, but it was only a small batch of bicycle certifications, only a small corner of the European market cake.

However, obtaining EU vehicle certification is only the first step for domestic automakers to break through the European market. How to break through the limits of non-technical barriers such as the E-NCAP (European New Vehicle Safety Evaluation Association) and how to meet local emission requirements is whether Chinese autos can Based on the key to the European market.

Shang Yugui said that “after entering the European market barrier, Great Wall’s next major task is to establish a good after-sales and sales network in the EU, and at the same time pay more attention to building the brand image of Great Wall Motor in order to gain a foothold in the European market. ”

Chery's current interest in barrier-heavy European and American markets is not great. Assistant Secretary General Jin Yibo of Chery Automobile told the reporter that “Europe and the US markets are rather special. Our attitude is to enter cautiously and wait for opportunities. At present, Chery has achieved a small amount of exports in other European countries in the form of other brands, but it will not be short-term. Formally entered the European and American markets.

Export direction to South America

Unlike the European market, the pace of self-owned brand vehicles entering the South American market has not stopped. South America's relatively loose import quotas, technology, and market access policies have allowed FAW Group, Great Wall Motors, Chery Automobile and other independent brand cars to initially open up in South America.

The reporter learned that Chery Motors entered the Brazilian market with the Tiggo sports utility vehicle as its precursor; in July this year, FAW had long-term representative offices in Peru and Colombia to take charge of the development of the local market; exports accounted for sales in 2008. 40% of Great Wall Motors has also made Chile, Peru, Venezuela, and other countries a strategic market for vigorous development.

"The requirements of the relevant standards in the South American market are mostly based on internationally accepted standards such as Europe and the United States, and there are relatively few non-technical barriers." Jin Qibo, general manager of Chery Automobile Co., told reporters that Chery currently markets in South American countries such as Uruguay, Brazil and Argentina. There is sales, and at the same time a vehicle production plant is built in Uruguay.

“Compared to the markets of Africa and Southeast Asia, the development of the South American market is still a relatively weak link,” Zhang Xiaozheng, vice president of the China Machinery Industry Federation, told reporters. “On the one hand because of the distance, the more important is that we There is not enough understanding in the South American market."

“The consumption level in South America is relatively high. Most countries are relatively affluent. Many countries’ per capita GDP exceeds that of China,” said Peruvian and Colombian chief representative of FAW Group Import and Export Co., Ltd., who is based in South America, to “Daily Economic News” reporter. Said, "At present, FAW Group's exports to South America are mainly commercial vehicles, including Xiali and other self-owned brand cars."

Zhang Xiaolu said that in order to better develop the South American market, the “China Automotive International Tour” organized jointly by the China Federation of Machinery Industry and the China Council for the Promotion of International Trade will start in October, and more than a dozen automakers of the brand will “set up” South America. The tour shows the overall image of the Chinese car. “The exhibition products include buses, wagons, SUVs, pickups, cars, and other full-range models,” Zhang Xiaoxi said. “We hope to focus on promoting the concept of Chinese brands through tour shows, and thereby attract the attention of the South American market and consumers to Chinese cars. ”

Export deadlock to be broken

“Last year, the export value of Great Wall Motor’s turnover accounted for 40% of the turnover. I am afraid that this year will not be able to achieve such a proportion,” said Shangyu Gui, reluctantly.

According to statistics from the Automobile Industry Corporation of China Automobile Industry Association, exports of all vehicle manufacturers continued to decline in August. Domestic auto companies exported 21,800 vehicles, a decrease of 2.63% from the previous month and a decrease of 50.80% from the same period of last year. From January to August, a total of 186,600 vehicles were exported, a decrease of 59.37% over the same period of the previous year.

"Because the export market is good or bad depends on the foreign economic situation to a large extent. Before the global economy has changed significantly, we judge that the decline in China's auto exports is difficult to reverse." Zhu Yiping, assistant secretary general of the China Automobile Industry Association, told reporters.

Faced with the severe export situation, Great Wall Motors responded by adopting a strategy of changing its export strategy. “Government procurement has become a new growth point for Great Wall Motor's exports,” Shang Yugui said. “Libya and Cuba and other countries have come forward from the government and purchased thousands of Great Wall Motor products. We will further expand the local market.”

Shang Yugui believes that although the export market was very bad in the first half of this year, China’s auto export market has gradually shown signs of improvement since August and has seen a recovery.

"In the face of declining exports, Chery has also chosen a variety of measures to deal with it." Jin Yibo said that Chery has accelerated its overseas deployment and is expected to build 15 assembly bases overseas at the end of this year; in traditional markets such as Russia and Ukraine With a solid foundation, we will accelerate the pace of advancement to markets such as South America, Africa, and the Middle East.

“The way to build an assembly base overseas is very easy to get the support of the local government,” said Jin Yibo, because it will play a positive role in promoting local employment and economic development.

“The State Council requires the auto industry to develop the rural market on the one hand, and actively and steadily explore the international market on the other,” Zhang told reporters. “The goal of industrial development for export is to hope that through the three years of hard work, the sales of self-owned brand cars In total, 10% of the products are exported; if the overall output of the domestic market reaches 10 million, 10% of the products must achieve export targets."

"As long as the Chinese automobile industry has not changed the overall advantages of international industrial transfer, the trend of the overall strength of the auto industry has not changed, and the export of Chinese automotive products will certainly improve," said Zhang Wei, Director of the Department of Mechanical and Electrical Industry of the Ministry of Commerce. In order to help the Chinese auto industry to better explore the international market, the "Opinions on Promoting the Sustained and Healthy Development of Automobile Products Exports" will soon be introduced.

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