Domestic Market Downturn Pushes Yuchai to Seek Opportunities Overseas

At the end of April and early Might, it also wined an purchase of 380 units associated with YC4E engines exported in order to South America and an buy of 700 engines with regard to school bus exported to be able to Saudi Arabia.

In the very first five months, Yuchai sea electrical products made outstanding market performance: year-on-year regarding Yuchai marine electrical items exported to Vietnam arrived at 50%, over 30 weighty marine electrical products had been launched on Middle Eastern market.

Look at one just right a leopard and you can imagine the whole animal. From the above great news, it is not hard to find that the abroad market of Yuchai within the first half year usually assumes a growth trend.

95% Full-year Sales Target regarding Engine Accomplished with the Vietnam and Saudi Arabia Marketplaces being the Major Contributors

Even though domestic diesel engine business kept falling, Yuchai’ item enjoyed a vigorous marketplace abroad in the first half this year. According to statistical information, from January to May possibly, the growth rate of complete export volumes increased through over 40%, with more than 4000 overseas sales, achieving 90% plus of the full-year sales target.

Southeast Oriental market is the gateway regarding Yuchai’s “going global” technique, in which Vietnam market offers always carried the lumping weight, especially the acceptable performance of this year. Through January to May of the year, more than 10000 motors were exported into Vietnam, with year-on-year growth of above 136% compared with that of 2014, including over 4000 models of YC6L and YC4E series truck engine, mainly with equipment assembled.

Liao Junfeng, Chief of Abroad Market Division of Overseas Company Department, pointed out that apart from the assistance of policies, potent after-sales service also plays a vital role in the achievement from the bigger share of our goods in Vietnam market.

Through the years, good after-sales service is the core work of Yuchai’s entering into overseas market. Tang Haidong, Director of Workplace in Vietnam always stresses the importance of “Service First” concept, and he requires staff at the office to put the customers first and also to solve the problems first regardless. Although being short of international service network as excellent like domestic ones and storage space of spare parts, its foreign service quality is highly valued by customers both in the actual neighboring Vietnam and the remote control Saudi Arabia.

“I are not able to remember how many times We drive my car with an unknown road at night time to provide service for our clients. Sometimes just for sending a little but imperative spare component, our staffs set out inside the afternoon but come back within the next morning. ” Ren Raoguo, Director of Office within Saudi Arabia recalled.

Marketplace in Saudi Arabia is essential for Yuhcai in Center East. Its engine intended for coach is extensively acknowledged at local place. The majority of intercity coach, bus, hajj bus and school tour bus, etc . are equipped with Yuchai motor. At present, Yuchai is the main engine provider for the best 4 passenger transportation businesses in Saudi Arabia. Within the first half of this year, Yuchai made great achievements inside Saudi Arabia, with 2200 predicted export volumes as well as 10% increase in market stocks on the basis of 2014

“Besides our own service quality, the execution of school bus project in advance also contributes to the increase. ” Rao analyzed, “at the same time frame, attention of leaders of our own company, the realization involving special needs of unique customers in Saudi Persia by Department of Support, Technology and Quality and also potent cooperation with household bus factory have additional advantage to defeat rivals. ”

Confronting the absolute benefit and satisfactory achievements throughout Vietnam and Saudi Arabic, though delighted, Liao additionally expressed some worries: “sales volume of Yuchai in areas like Vietnam takes up big shares in the, reflecting the particular imbalance of overseas industry structurally. ” Therefore , depending on consolidating the original prior market place, it is very important to open up along with develop other overseas sector. “We also seek possibilities in other markets, like by starting with grasping typically the opportunities of Russia’s intend to replace gas engine, all of us plan to gradually establish a marketplace in Russia; now Ur & D of fuel engine technology is in sleek progress. ” he included.

Heavy Marine Electrical Items Greatly Contributes to the Growth connected with Sales Volume & Revenues of Marine Electric

Earlier this year, Department of Sea Electric Engine Business suggested the strategic concept of “Striving for Terminal, Defeating with Battle; Breaking Through International Market, Providing Professional Service”, and made great efforts for you to consolidate Southeast Asian industry, open up European market and march into African market place. Under this guidance, through January to May on this year, compared with same amount of last year, sales volume in addition to turnover of Yuchai’s ocean electrical engine products has exploded substantially, with the sales volume level increasing by nearly thirty percent and turnover increasing simply by over 60%.

New products with good horsepower such as YC6T, YC6TD, YC6C, YC6CL, etc . tend to be continuously put into market, that meet the requirement of customers to get products with high horsepower. All those products by virtue of high dependability, low oil consumption as well as enough power rapidly acquired recognition from markets. This is often verified through the structure modify of Yuchai’s export merchandise. In the first half yr, among the exported marine electric products, heavy marine power accounted for over 70%, along with 127% increase of product sales volume compared with the same time period last year.

Increase in the revenue volume is the result of brand new market. Excluding exchange price factors and local political environment factors, driven by the goal factor of economic advancement, overseas market of Yuchai heavy marine electrical solutions enjoyed a promising future.

Additionally , good public praise can be another factor driving Yuchai maritime electrical products in the market to develop. In November 2014, Vietnam TNTC adopted 2 products of YC6C as the significant engines of a 92-meter-long underwater cargo ship. Up to now, around half a year have handed down, the customer made such suggestions that there was no malfunction within Yuchai’s engine, and essential oil consumption was 30% less than their expectation.

Ship proprietors always make contact with each other, therefore the brand establishment depends on the term of their mouth. User-friendly device can be spread widely “The promotion of its in a different country brand mainly relies on compliment of ship owners other than advertising and holding introduction and also marketing event” Zhong Xiaojun, Director of Overseas Enterprise Division of Business Department associated with Marine Electrical Engine, stated.

In the first half 12 months, Yuchai continued to strengthen the influence on Southeast Asiatische market, further consolidating where it stands. Besides popularity in Vietnam, sales volumes of large marine electrical products carry on growing in market in Indian and the Philippines, etc . Furthermore, if the effect of trial journey of Malaysian sample deliver is released, Yuchai will discover quantitative growth in this region right after 2 to 3 months.

In Chicken where is known as Eurasia Property Bridge, Yuchai, through the co-operation with a certain company, actions up its race to into Europe. At present, Yuchai has gained over thirty orders in this market. It really is learnt that Yuchai is actually expected to open up the Western marine electrical market according to this springboard.

Yuchai’s abroad markets like markets inside Vietnam, India, Malaysia, often the Philippines and Turkey and much more such markets in the future far away forms the business map regarding Yuchai heavy marine electrical power products.

Heavy marine electricity products serve as a significant assistance for Yuchai marine powerplant to build a global brand. Not the same as domestic after-sales service, international after-sales service lacks pace in reaction. Therefore , it is crucial to assure products' after-sales support and supply of spare parts whenever entering a new market.

Underneath the circumstance of continuing slump throughout Chinese market, Yuchai can also be eyeing oversea market with regard to opportunities, which implies not just the implementation of the approach of “going global”, but additionally a way to break the problems. However , can the “going global” strategy bring about any fresh opportunities? The answer of Yuchai is that equal importance along with tough approach must be attached with and applied to both brand name and service.

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