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It
is learned that Yutong divides its overseas
markets into such areas as Europe-Russia, Africa,
Middle East, and Asia, and sets up branch offices
there to investigate markets and provide after-sales
service. Contracting of more than 2,400 buses
are concluded by Yutong last year, amounting
to 150 million US dollars, a new record for
Chinese buses' industries. First half of this
year sees Yutong exports nearly 1,000 buses.
Yutong, at the end of March 2006, won "Award
for Export Marketing-Best Complete Vehicle Builder
BAAV2006". It is the first time for a Chinese
automotive enterprise to win such a great honor.
Attention should be given to the fact that cooperation
between Yutong and Cuba not only includes export
of complete vehicles, but includes technology
transfer, trademark license, financing, CKD
parts, and after-sale service as well. Additionally,
Yutong erects passenger car assembly lines in
Cuba.
The idea prevails that "European get hold
of automotive technology, China possesses automotive
market". Therefore, practice of Chinese
automotive enterprises is "to obtain technology
with market". Such a practice brings Chinese
automotive industry into prosperity, multi-national
companies, however, hold the core technology
on vehicle model, engine, and transmission;
charge too much for technology transfer, design,
key equipment, key parts and components, which
falls into a great barrier against Chinese automotive
enterprises to develop. Poor product diversity,
arising from poor technological innovation,
features Chinese exported automobiles. Competitiveness
of many exported automobiles is their lower
prices.
Wise practice of Chinese automotive manufacturers,
Yutong thinks, is to constantly innovate, develop
technology and culture brands with independent
intellectual property, in other words, "to
obtain market with technology". For recent
years, Yutong, annually, puts more than 4% its
sales income in research and development including
product design. Yutong possesses a National-level
Technology Center, and a Postdoctoral Workstation,
both of them are the first ones for Chinese
passenger car industry. Additionally, Yutong
cooperates with Germany Man Company to erect
a research and development center in Munich,
to keep its products at the world advanced level.
Every year technicians are sent by Yutong to
study in Europe, or learn about advanced design
and process flow in International Business Vehicle
Exhibition.
Vicious competition between Chinese exported
products is eliminated through the improvement
of quality, which enables Chinese enterprises
to enjoy competitive advantage over others.
Yutong finds a new way to exploit overseas market.
As an example let us take its export to Cuba
in 2005. For Cuba market, Yutong mainly employs
a long-term strategy. The export includes CKD
parts, technology, and training local technicians.
Cuba factories are required to pay expense for
every passenger car produced in Cuba, and the
passenger cars produced must be labeled with
Yutong trademarks. Therefore, both the passenger
cars themselves and the brands are exported.
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