Russia's auto market: China's auto exports to blessing?

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Although frustrating news such as the continued obstruction of Chinese cars has come from Russia, the release of a set of official data has undoubtedly given a strong boost to the Chinese auto market.

In 2006, China exported 38,000 cars to Russia, amounting to US$350 million, an increase of more than 300% over the same period of last year. From January to June 2007, China exported 38,600 vehicles to Russia, and the total vehicle export value was 450 million U.S. dollars, an increase of 477.6% year-on-year, more than last year's total sales. In the ranking of China's export countries, Russia ranked first from the sixth place in 2005 and became the "first exporter" of Chinese cars.

This set of data comes from the “2007 China-Russia Automobile Trade Cooperation Forum” jointly sponsored by the China Automotive Engineering Society and the Department of Commerce of Heilongjiang Province and the People’s Government of Harbin.

In recent years, Russia has always been one of the hottest countries in China's automobile export boom. "Based on its huge market space and geographical advantages to China, it is bound to make Sino-Russian automobile trade and cooperation face a broader prospect." Zhang Xiaoji, chairman of China Automobile Engineering Society, said at the forum.

Cake seductive

Wang Jinsong, deputy director of the European Department of the Ministry of Commerce, said that the Sino-Russian trade has maintained growth for eight consecutive years. The governments of the two countries have set a target of bilateral trade volume between 60 billion and 80 billion U.S. dollars by 2010, and the auto industry will focus on future economic and trade cooperation. point.

The huge potential of Russia's auto market is an opportunity for Chinese autos. According to statistics, in 2006, the total sales volume of passenger cars in the Russian market was 2.06 million, while there were only 760,000 local brands. The rest were all depended on imported cars, locally produced overseas brands and used cars. It is predicted that only by passenger vehicles, by 2010, more than 2 million overseas brands will be required to meet the requirements of vehicle imports or local production.

Not only passenger cars, Russia also has strong demand for other types of cars. According to Wang Jinsong, in the field of trucks, the Russian truckload of small-tonnage trucks has increased from 25% in the 1990s to about 60%; heavy-duty trucks with more than 8 tons have accounted for 14%-15% of the total automobile production. The car has a 28% market share.

According to Russian customs statistics, in 2006 Russia imported 54,000 trucks and exported 47,000 vehicles. Second-hand imported cars account for nearly half of the heavy trucks imported from Russia. In the field of coaches, the annual demand for Russian buses is about 16,000, and the Russian tourist bus rental market is also booming.

In front of huge business opportunities, Europe, the United States, Japan and South Korea have long been unable to hold on to their cars, attacking the Russian market in large numbers, and Chinese cars are following closely. In terms of transportation, China has an exclusive advantage. Russia is adjacent to China and can be transported by rail or by shipping.

Fu Peizhao, deputy secretary-general of the China Electromechanical Products Import and Export Chamber of Commerce’s Automotive Subcommittee, said in an interview that entering the Russian market would mean having an opportunity to expand into neighboring countries. "The Russian market has a strong radiation effect, most of the CIS region The country is greatly affected by Russia’s political economy."

Russian "enclosure"

After several years, the Chinese car companies appearing on the Russian market have evolved from a few enterprises such as ZTE and Great Wall to dozens of companies. “When I participated in the China Auto Russia Tour” in May, FAW, Dongfeng, More than a dozen companies such as SAIC, Futian, Shuguang and Weichai have already or are actively planning to enter the Russian market.”

Chinese auto companies such as Chery, Great Wall, and FAW have already landed in Russia and have come to fruition.

It is understood that Chery Automobile has cooperated with Russian companies and began to produce Cowin and Tiggo in assembly mode in Russia. Chery Automobile spokesman said that from January to June this year, Chery Automobile exported a total of about 17,000 cars in Russia, with a growth rate of 1100%.

Great Wall Motor entered the Russian market in 2004 and mainly exported pickup trucks. It has established more than 50 standard stores in Russia. In 2006, the Great Wall launched a project to establish a wholly-owned production plant in Russia with a total investment of US$70 million and an annual production capacity of 50,000 vehicles. From January to June this year, Great Wall Motors exported a total of more than 8,000 vehicles to Russia, an increase of 90% to 100% year-on-year.

In 2005 and 2006, FAW exported more than 2,500 vehicles of various types in Russia by means of trial sales, and promoted key products of light vehicles, minicars and medium- and heavy-duty trucks to Russia. At the same time, FAW matched its products with axles to the famous Russia. On the "Ural" vehicle, as of the end of 2006, it has accumulated nearly 1,000 sets of exports.

The related person in charge of FAW Group told the reporter that through two years of exploration, FAW has basically confirmed the market strategy of heavy commercial vehicles and economy cars in the Russian market, and assisted by medium and light trucks, passenger cars and mini vehicles. . “This year, we expect that the export of complete vehicles and KD spare parts will impact 10,000 vehicles. In the next 2-3 years, passenger vehicles will gradually realize the transition from SKD to CKD assembly. By 2010, FAW will be in the Russian market. With sales of 40,000 vehicles, sales will reach around US$700 million in 2011.”

Hafei Automobile spokesman said that Russia is its newly developed overseas market. "On the first day of Harbin Fair, Hafei and Russia signed sales orders for 8000 vehicles throughout the year. It is understood that at present, Hafei Automobile has been near Moscow. There are nearly 60 Hafei vehicle dealers.
Experts have judged that Chinese auto companies have taken a solid step in their trade with Russia and gradually shifted from initial general trade to marketing and strategic development.

Avoid "fighting in the same room"

In early July of this year, the Russian side announced the suspension of the approval of five Chinese auto companies' four projects for assembling cars in Russia, with a total price of 380 million U.S. dollars. Russian Minister of Industry and Energy Khristenko stated that the Russian automobile industry will not engage in "ethnic discrimination," but "all Russian automotive industry investors should produce products that meet all European market standards."

In this regard, Zhang Xiaoxuan said that Russia’s requirements for imported cars are far higher than those for its own domestic cars. For example, the noise requirements outside the car are even higher than the European standards; Russia’s domestic emissions are only Euro I standards, and For imported cars, they are required to meet Euro II standards.
Fu Peizhao believes that the first problem that Chinese car companies must face is the problem of vehicle certification in Russia. At present, Russia has stricter requirements for the import certification of cars produced in China and takes longer. This is because the Russian certification body does not recognize the relevant certificates issued by domestic institutions, and it is necessary to provide prototype vehicles to conduct tests in Russian local laboratories in accordance with the standards and procedures established by Russia. However, the certification problems also reflect the rapid growth of Chinese cars, and their low prices. The advantages have caused a certain impact on Russian domestic auto makers.

"This year, China's exports to Russia can reach 60,000 vehicles. However, the current evaluation of Chinese cars is more negative than positive, and negative information comes mainly from the media." Zhang Xiaoqi expects this to be related to the degree of openness of Russian media, but Chinese cars are also required. Examine yourself.

According to Wang Jinsong’s introduction, in the Russian market, cars do not belong to the license quota management goods. After the imported vehicles have passed the certification and obtained the vehicle type approval, they are classified as general commodities. As long as the company’s articles of incorporation allow, any company can engage in the foreign trade of the goods. .

“Some people take the form of border trade to do motor business. Registering a company sells a car, and selling a car company cannot be found; some manufacturers’ new cars are sold by middlemen to second-hand cars in Russia in order to avoid taxation. The interests of Russian consumers, and ultimately hurt the credibility of Chinese brands.” Zhang Xiaoyu said in an interview.

In order to compete for the market, they did not hesitate to compete for prices, disturbed the normal market order, reduced their profit margins, and provided an excuse for importing countries to take trade protection measures. This is a true portrayal of Chinese car companies in overseas markets. To this end, Fu Peizhao pointed out that Chinese auto companies should strengthen self-discipline and internal coordination guidance to avoid vicious competition.

"Russia itself is a big country for automobile production. It has relatively complete technical standards and regulations and policies. Chinese cars should enter the Russian market with strict quality control and avoid low-quality products from entering the Russian market. Despite short-term gains, they hurt the Chinese cars. Overall image." Fu Peizhao said.

At the same time, he also proposed suggestions for overseas after-sales service systems. In the case of gaps between China's autos and the West, they must occupy a place in the international market and pay more attention to pre-sales and after-sales services, including products that meet the environmental characteristics of the Russian market. Ensure the supply of spare parts, have a perfect foreign language description, conscientiously fulfill the contract obligations.

Zhang Xiaolu proposed: "If we do not effectively solve these problems, the Chinese car market in Russia may be 'short-lived.' Improve the quality of automobiles and brand awareness, improve after-sales service system, establish a good reputation in Russia 'China Auto', is China's auto exports The key to Russia."




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