From January to August 2015, the exports of JAC completed vehicles ranked NO.4 among industry and continue to maintain the lead position in segment market. The light-duty truck has kept the No.1 of exports for 14 years and the passenger car ranked up to No. 2 and heavy-duty truck ranked No.3 among the industry. The exports business has become the main force of JAC.
JAC has undergone 10 years’quick development. In December 2005, JAC International Company officially established and opened its professional global journey. Through 10 years’development, JAC has expanded its business to more than 120 countries with over 100 kinds of products and the accumulative exports volume has exceeded 350,000 units with over 500 international sales and services networks.
JAC light-duty trucks was first launched into overseas markets
China started late on auto industry and auto exports developed slower. Since 1960s, the exports of Chinese auto have always in form of international assistance without compensation. Until 1990s’, China has the true meaning exports. In May 1990, JAC 36 units’light-duty trucks exported to Bolivia and took the first steps toward internationalization.
However, the same as the most Chinese auto brands, JAC’s most export order obtained from grand trade show for the lacking of international trade experience and the restriction of products variety.
‘I often took part in Canton fair when I first started working in JAC. And I always introduced whatever products we have and waited overseas customers to find us. At that time, our goal was too simple that is to sale cars. Actually, we didn’t familiar with their markets.’ said by Mr. Xia from JAC International commercial vehicle department.
At the end of 2001, China entered into WTO and the exports of automobile began to grow very quickly; In December 2005, with the establishment of JAC International Company, JAC overseas export business was officially on track and the market strategy has changed greatly. We must go out actively and take part in the most intense international market competition.
However, more than 100 countries and lacking of professional international salespeople, how JAC to open its overseas markets?
In order to find the cooperation opportunity, JAC first combed global top 10 automobile distributors and visited one by one. But at that time, JAC brand wasn’t famous in local market and was flatly refused by distributors. However, the salesperson didn’t give up.
‘We insisted on calling on local distributors for many time. Finally, some distributors were moved by our sincerity.’ Mr. Xia remembered that in order to cooperate with a powerful distributor, he started to contact with them from 2007 and they agreed to meet until 2010.
Meanwhile, JAC International drew up a differentiated marketing strategy and formed a market enter route: Centralized superior resources, consolidating and expanding the market. One route is from the Middle East, eastern Europe, southern Europe to the Western Europe, and the other one from South America, Middle America and to North America.
The operation model is: completed vehicle exports-KD assembly- joint venture plant; products output- technology and management output- capital, human resources and culture output.
According to market attribute, the target markets are divided into three classes: focus, strategy and emerging. And according to the different target markets, JAC made the different market strategies to create the product differentiation advantage.
JAC passenger car go abroad
Compared with light-duty truck, JAC passenger car ‘go abroad’ step was little later. In 2006, the first MPV exported to Eastern Europe, taking the first step toward to international market. In 2007, JAC International passenger department established and faced the problem of single product structure and insufficient resources.
‘We first thought of JAC light-duty truck international distributor network, which can sell our passenger vehicles at the same time’ said by JAC International passenger car department director. Rely on the existing light-duty truck international marketing networks, JAC quickly achieved a great breakthrough in overseas markets.
However, the commercial vehicle and passenger car had born to the differentiation goods attribute. ‘We found that not all of the light-duty distributors could sell passenger car products very well. So we must adjust the sales networks.’
From the beginning of 2010, JAC International adjust the distributors who signed the contract at early stage, which strengthened JAC position in traditional market and helped JAC to export to South America and other emerging markets. Especially to Brazil market, it becomes a leading market of JAC in overseas.
In 2007, the global financial crisis was occurred around the world, which led to SHC Company, the largest distributor of Citroen and the sixth largest distributor of Ford around the world, realized that with the soar of Chinese economy they need to find a really powerful and growing auto enterprise to cooperate.
In October 2009, the CEO of SHC visited JAC Group. Before that, he had investigated all the Chinese auto brands. In this survey, he came to JAC plants and paid attention to the quality of JAC products. Finally, on the base of JAC’s independent innovation, excellent products quality and forward-looking team management, the cooperation hit it off instantly.
With the introduction of new products, JAC carried out a series of adaptable improvement. In March 2011, J3 launched into Brazil and was to be welcomed. In the first month of releasing, the sales volume achieved 3600 units, which created the monthly sales record of new model and sold 25000 units the whole year.
Now, JAC passenger car has formed SUV, MPV, Sedan all series products portfolio. From January to September 2015, JAC passenger car exports had set to grow despite fluctuations in our county passenger car exports down by 18%. The cumulative export was nearly 35000 units, up by 79%, and the exports growth ranked No.1 among the industry and the export volume leap to No.2.
JAC heavy-duty truck also is growing fast
In 2008, with the establishment of JAC heavy-duty commercial vehicle department, the profession degree of JAC heavy-duty trucks exports had been enhanced further. At very year, the exports volume surpassed more than one thousand units. In recent years,
In July 2014, good news came from the Venezuelan market, Venezuela road transport department, Venezuela foreign trade co., LTD and JAC jointly signed the purchase contact of 5239 units’ heavy-duty trucks and the contact amount to 274 million US.
Why JAC can obtain this big contact and stand out from so many domestic and overseas competitors? The secret is：This is the result of JAC many years deep cultivation, which helped JAC to win good market reputation and quality.
In actually, JAC had entered into Venezuelan market in 2006. And in 2012, JAC established KD plant and owned the capability of assemble pickup, light-duty truck, heavy-duty truck. In 2013, the sales volume JAC light-duty truck passed GM light truck and became the No.1 Chinese commercial vehicle brand and No.1 light-duty truck brand among the global commercial vehicle brands.
The ‘Changes’ and ‘Invariant’ in past 10 years
From simple bills operating to international marketing ability growing; From the increase of exports volume, the accumulation of brand influence to booming of important markets; Export products from low-end to high-end; the customers from individual to group; pickup, mini truck became the new export growth point. Ten years cultivation brings fruitful results. But to JAC,it is much more than that.
‘Ten years ago, we need find partners actively. But now, many distributors take the initiative to find us; Ten years ago, customers bought our products with the attitude of try holding. Now, most customers buy the first unit, second unit, third unit….and become our lifelong partner.’ said by Mr.Xia.
Ten years’growth and changes, we can deeply feel the enhancement of JAC products and brand. In some markets, JAC has formed brand strength and premium capacity, even can compete with some international first class brands. ‘ISUZU began to take the price-lowering policy to compete against JAC light-duty truck in parts of Middle-America markets, which was unthinkable in the past’
However, around the world, the market structure is changing. How to keep advantage in the fierce international competition?
‘Accurate positioning, strict controlling of products quality and wining the reputation from Intimate service’concluded by JAC International vice-general manager Mr. Zhang Peng.
‘Ten years ago, we thought how to sell vehicles. But now, we think more about how to help our distributors to establish a sustainable development business platform. JAC heavy-duty truck department director Mr,Zeng Lang thought;’ To establish such a sustainable development platform, we need create more value for customers through the whole product life cycle under the condition of adapting the local market policies and customer demands’.
The world market condition is changing, the market strategy is changing and only the customer value can’t change. Who can bring more value to customers; it will be accepted by customers and market. Thus, Mr, Zeng said:’JAC need to always adhere to create more value products and service for global customers, and the product development direction needs continually adjusting on basis of global economy and main market characteristics. The whole R&D, manufacturing and market system should maintain the high degree of flexibility and sensitivity.’
In the next ten years, with ‘made in China 2025’ and China ‘One Belt And One Road’strategy deep promotion, the product power of Chinese auto will be enhanced greatly. China will strengthen its economy relationship with Southeast Asia, central Asia, Africa, South Asia, and the auto export opportunities will be increased. The international market has always changing, but JAC will always adhered to create more value for international customers.