Futian Automobile Accelerates Its "Terrainization" Tactics

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On the one hand, the domestic commercial vehicle market is in the doldrums, and on the other, overseas business development is in full swing. Since the formal approval of the joint venture with Daimler last year and the construction of the Indian plant, Foton Motor has begun to accelerate its expansion in overseas markets such as Europe, the Middle East, and Africa.


Overseas expansion accelerates


In the "2020 Strategy" formulated by Foton Motor, the overseas business segment will establish a plant to annually produce 100,000 cars in five countries in Russia, India, Brazil, Mexico and Indonesia in 2015, breaking through North America, European Union, Japan and South Korea. Wait for the market in the three most developed regions and build a global headquarters in China. According to the plan, Foton will achieve a sales volume of 4 million units in 2020, of which overseas sales will reach 1.2 million, accounting for about 30% of total sales.


Under the promotion of the "531" overseas development strategy, the pace of Foton's expansion into overseas markets has accelerated significantly in the past two years: On April 4, 2011, Foton Motors' KD production base in East Africa was laid in Nairobi, Kenya; then, in 5 In July, Fukuda signed an investment letter of intent in Mumbai, India; in June, Foton Motor’s European Automotive Division and Russian Foton Motor Company were formally established; in October, the Fukuda Board of Directors passed a resolution of investing 620 million yuan to build a subsidiary in India; On February 18, Foton Daimler Automotive Co., Ltd., a joint venture of Foton and Daimler, was formally listed; on March 26, Kenya Sales Co., Ltd. was established. Its first global product, Pioneer Lander, is also Officially landed in the Kenyan market; in July, the Foton Daimler Automotive Joint Venture officially commenced operations.


Fukuda Automobile's internal statistics show that in the first 11 months of this year, Foton Motor achieved sales of more than 30,000 vehicles overseas, an overall increase of 24.5%. In terms of regions, sales of Foton Motor in Central and South America, North Africa, and Central and South Africa have steadily increased from January to September this year, an increase of 8.8% over the same period of last year, among which sales in Southeast Asia increased by 50% year-on-year.


With regard to the rapid development of Futian's overseas business this year, the relevant person in charge of the Futian Automotive PR Department said in an interview with the reporter of the “First Financial Daily” that after the Fukuda Daimler joint venture was formally operated last year, it used Daimler’s overseas With channels and sales experience, Foton began to actively participate in the international market expansion and accelerate the localization of overseas markets. This year, it has achieved rapid development in Australia, Colombia, Russia, India, Brazil, Uruguay, South Africa and Saudi Arabia.


However, as news of Futian’s recent investment and construction of plants in Brazil and Cameroon, the person in charge of the above-mentioned public relations department said that no substantive agreement has actually been signed with the local government. He said, "Although the Brazilian and African markets are also the overseas markets that we have focused on expanding, before we officially enter a market, we need to do research first, and investment intentions are not always achieved."


Localized management


Behind Futian's overseas business "flowering everywhere," the transformation of overseas sales patterns has played a decisive role.


“Before, Futian Exports made orders and produced products for orders. However, this way Fukuda is not aware of the needs of users and does not have network terminals. Now Futian is doing overseas markets, and it is customers. From the marketing business model, industrialization, CBU (completely assembled) and KD are indispensable.” Wang Xiangyin, deputy general manager of Futian Automotive and general manager of the Overseas Business Division, said in an interview with this newspaper that the move from merely selling products to packaged selling services will convert one-time trading customers. For the long-term distribution business agents, the transformation of the trading model has enabled Foton Motors to achieve significant results in target markets such as Southeast Asia, Central and South America, North Africa, and South Africa, and “the key to global marketing is the localization of talent. ”

In fact, in the "2020 Strategy" of Foton Motor, the "overland operation, territorial management" overseas business management model is one of its key tactics for further opening the market.


After the establishment of plants in the five developing markets of Russia, India, Brazil, Mexico and Indonesia, Foton will achieve local procurement, local production and local employment. In the case of a Russian company, of the 36 employees in the construction phase, only 7 employees are stationed in China; of the 9 managers, 4 are local people.


The reporter learned that, when it spent 620 million yuan to build a factory in India last year, Fukuda has developed a set of global training programs for recruiting talents and company expatriates in India and started formal implementation. In the future, after Brazil, Mexico, and Thailand build factories in succession, by 2015, 90% of Futian's overseas business units will be internationalized.


“In the past few years, we have mainly focused on the development of Russia’s business, including industrialization development and enhancement of the brand image. We have truly achieved 'diversity operations and territorial development' and continued to advance and enter the European market.” Futian Automotive Overseas Business Wan Xujun, deputy general manager of the ministry, said in an interview with the newspaper yesterday that since the establishment of the European regional operations center in June 2010, the operation of Foton Motor in the Russian market this year has been on the right track, and at the same time, network expansion and product development have also been carried out in Italy. This will lay a good foundation for the market entry next year.


Industry commentator Yu Chen believes that export is an opportunity. However, at present, China is still one of the fastest-growing markets in the world. For local companies, while actively “walking in”, we must not neglect to “stabilize the roots” in the domestic market.



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