On April 26th, 2018, organized by the China Association of Automobile Manufacturers and CCTV Financial Channel, the 2018 China Automotive Forum supported by the World Automobile Organization (OICA) was held in Beijing. In the afternoon, Assistant Secretary-General of the China Association of Automobile Manufacturers and Trade Coordination. The Director, Mr. Xu Haidong, presided over the interactive dialogue forum between the “Belt and Road” initiative and the Chinese brand “Going Out” strategy. Mr. Xu Haidong mentioned in the forum that as one of the important economic industries, the automobile should also play better in the future. The role of the Forum. One of the sessions of the Forum invited relatively well-established companies in the Chinese auto companies to go global. It arranged for corporate guests to interact with each other and listen to their suggestions. The invited guests were respectively the Ministry of Commerce. Mr. Xing Chuan, Deputy Director of the Foreign Trade Drivers' Electric Department, Mr. Du Weiqiang, Deputy General Manager of the International Company of Chery Automobile Co., Ltd., Mr. Zhang Peng, Deputy General Manager of the International Company of Anhui Jianghuai Automobile Group Co., Ltd., Assistant to General Manager of Brilliance Automotive International Trading Co., Ltd. Mr. Kai and Mr. Chen Chunlin, Chairman of Desai Xiwei Automotive Electronics Co., Ltd.
Xu Haidong: I would like to raise the first round of questions for our corporate guests. As we all know, companies are very difficult in overseas development and have suffered a lot. Please introduce the achievements we have made in overseas development. What experiences and lessons have been summarized?
Deputy General Manager of Chery Automobile Co., Ltd. International Company Mr. Du Weiqiang
Du Weiqiang: Chery has been going overseas for 14 years, and has also made some achievements. Our total export volume has now exceeded 1.3 million units. We have established overseas. Our service network and maintenance network have exceeded 1300. We are in Iran. Market share, no 50%, Anyway, the market share is above 10%, 6.7 million, about 10% or more. The total holding has exceeded 300,000, which is in Iran. We also have our own factory in Iran. The production capacity of the factory exceeded, and now we are doing the second phase. The new production capacity is 100,000. We have established our own industrial park. It should be said that our performance in Iran is very good. Excluding the two domestic companies, it is equivalent to In the second phase of the country, we Chery came in third place, so this is still a good performance. In Latin America, our market has more than 200,000. In Argentina, Chile, and Peru, we have good performance. We are The first Chinese-funded enterprise that entered the Russian market, the entire number of possessions also exceeded 200,000 vehicles. We have recently made great moves in the Middle East and North Africa. We have already completed some basics in North Africa. Plant construction, soon to be assembled.
So, this is some of our performance in the international market. When it comes to experience or lessons, I actually want to say that we are going to use it. Our biggest so-called experience is that before we enter a market, we must To fully understand this market, in terms of policies, industry policies, national policies, economic development, competitors' competitors, and what products enter the law, tax, etc. If you want to consider the construction of a factory In order to consider the strength of the trade unions, we must also consider the local supply chain, and also consider some of the technical conditions for localization. These are the factors to be considered.
There are actually several biggest threats. The first thing that can be seen is the devaluation of the currency. The devaluation of the currency of our destination country, the economic downturn, and political instability have become a new normal. The US dollar has recently become us. One of the biggest threats to the external world, because exchange rate changes cannot be controlled by our company, so from last year to this year, we have increased by nearly 10%. From January to March, we have seen a lot of foreign exchange losses. Loss, there is a potential problem. In the past, many of our companies entered the overseas market. When international competition became fierce, we wanted to have a large overseas market and pay attention to cornering overtaking. In fact, I said that in traditional fossil-energy vehicles, it is necessary to realize overtaking. It's really difficult. We must realize that there are some gaps in the auto industry between us and some developed countries. Therefore, there are some ideas that must be changed, and we must be able to move forward in a down-to-earth way. Only in this way can we get along well. This morning, we discussed with a general manager of GAC. He also mentioned that if we want to do overseas markets, we must have long-term plans. We must endure loneliness. One step at a time. Step by step, this is the second point of view, I am afraid that some domestic companies have not realized.
In the third external cooperation, we discovered our own ability to cooperate with others, the level of our talents. For example, it is very difficult for our overseas factories to find a talented person. We have found this talented person, we must be very familiar with international trade, and be familiar with international How do you communicate, for example, if you want to cooperate and form a joint venture, what kind of attitude is very difficult, and there are only a few talents, especially if it is an expert, it is hard to find talents with intelligence or logic.
This is my little thought. It's not necessarily right.
Xu Haidong: I am very grateful to Du for his succinct introduction. In 2012, China’s auto exports had exceeded 1 million vehicles. However, China Automobile Association did a special event. At the Beijing Friendship Hotel, we celebrated that China’s auto exports exceeded one million vehicles, but from After that, the situation changed rapidly, but recently it has been redeveloped. We have seen that the competitiveness of our own branded products has now been greatly improved. Therefore, when we go out this time, I am afraid that we are more confident and more capable. Well, next we want to have Jiang Jiang's Zhang Zong, Zhang always be the leader of Jianghuai's exports. The layout of the entire JAC export market for so many years was achieved under the guidance of Zhang Zong. Here we invite Zhang Zong. Tell us about JAC's overseas development in 2017 and related characteristics.
Deputy General Manager of Anhui Jianghuai Automobile Group Co., Ltd. International Company Mr. Zhang Peng
Zhang Peng: We have entered the international market early on JAC. We have a history of nearly 20 years. We started exporting JAC light trucks to the Latin American region in 1997 and 1998. JAC's characteristic is that it is an independent brand enterprise. It was just beginning. Starting from commercial vehicles, commercial vehicles are started from trucks and buses. Nowadays, such a passenger vehicle is used. Last year, we exported 65,000 vehicles, of which passenger cars now accounted for about 70%. It turns out that our commercial vehicles use The car's export is half-half, and it is now more passenger cars. This is also the size of the car industry in line with the needs of the industry.
The other one, that is to say, the distribution of the regions we are currently exporting, we now export 60% of our exports are in the 'Belt and Road' countries, and 40% of our exports are in Latin American countries. This is the characteristic of this product's regional distribution.
The other one, we start with the output of the product and go to the output of the technology and management. At present we have 19 factories around the world, but most of the factories we have no investment, we are technical output, then help them build factories and then import our technology and Management, of which 9 factories are in the 'Belt and Road' countries, then our country's products assembled abroad account for about 60% of our exports, which is a feature of our exports, at the same time, we Jianghuai Automobile we The strategy is called Bigger and Stronger Commercial Vehicles, Doing Better and Better Passenger Cars, Commercial Vehicles. Especially in South America and North Africa, we have a relatively high share of commercial vehicles. We can basically enter the top three of international brands, including North America. Mexico we now truck and the United States We assembled new energy trucks in California, Bigger and stronger commercial vehicles This is a more powerful advantage of the Chinese auto industry.
At the same time, we will focus on small and medium-sized SUVs. We will focus on small SUVs. SUVs are China's small and medium-sized SUVs in particular, or China’s own brands are relatively strong. So last year we exported SUVs to nearly 40,000 units. Our products include our MPV products, that is to say, bigger and stronger commercial vehicles, and doing fine commercial vehicles in our overseas markets also have such a manifestation.
There is also a Jianghuai enterprise to be a five-million-dollar company. It must be effective, technical, quality, and unique. The last one is a large scale. This point, we are doing quite well overseas. We are in overseas markets. The benefits are quite good. In addition, our cash flow has been performing very well. However, President Du also mentioned this year that the appreciation of the renminbi this year is still under great pressure. This year, compared to last year, we earned a little less than seven cents for a dollar. The renminbi, so the pressure is even greater. Therefore, through such an upgrade of technology, continuous improvement of quality and further enhancement of services, we must constantly improve our brand's bargaining power. I think this is very important. Thank you!
Xu Haidong: Thank you, Mr. Zhang for his brief introduction. According to my understanding, Jianghuai is the first one proposed in the company's strategy to export. It seems to have to account for 20%. It should be said that he is a strategic layout of the company and is clearly the first This is so proposed, so although he may not be very large in himself, he is still very good in his own work, including his management, and has his own characteristics. Here we have asked Chen Chen of Brilliance to introduce us to Brilliance’s overseas development and related characteristics.
Mr. Chen Kai, Assistant General Manager of Brilliance Automotive International Trading Company
Chen Kai: I briefly introduce the overseas development of Brilliance Development. We have also been doing overseas for more than ten years. The main trade has been mainly from the very beginning. Now it is developed in the form of KD cooperation. At present, we are in Russia. Has its own branch office, has its own branch office in Iran and has established an office in Iran. Also in North Korea, Southeast Asia countries including the future in Central and South America, we will all arrange the cooperation of some KD factories. At the beginning, we mainly The general trade accounts for the vast majority of our exports. We mainly have two models. One is a sedan and the other is a light passenger. However, over the past few years, we have gradually realized that the general trade is developing overseas. Will take up less and less, so at present we exported 54,000 cars last year, most of which was to Iran, and we currently have a total of 80,000 exported in Iran last September. , So far this year we have sold more than 15,000 units on Netease.
So, including now in Egypt, we are also actively looking for ways to advance cooperation on KD, including in Russia, and it will slowly develop from general trade to this type of KD cooperation. In the process, I feel that we have Brilliance. The group still has to respond positively to the national initiative of the 'One Belt and One Road' initiative. The countries along the 'Belt and Road' initiative have countries that have created such a good environment for us to use more of our power.
In the future, we plan to continue to maintain this advantage in countries such as Iran and other 'Belt and Road' countries, and then to ensure our development, to ensure our quality, and then to reduce our costs, by continuing to increase this The way of cooperation, including our current cooperation with Iran in addition to KD, we will also transfer our production capacity to Iran. In addition, we will set up an engine cooperation plant in Iran, including the introduction of more high-end models in Iran. Establishing a brand image of our overseas. This is what we are committed to doing. Overall, it means that China Automotive, including our Brilliance Automotive, will unwaveringly deepen its overseas cooperation and transfer to establish overseas factories overseas. An important strategy of the future group.
With regard to the experience of overseas development, I have listened carefully to a number of distinguished business guests who also said a lot about it. Our situation is also more similar. I will add here again that when a car goes overseas to explore the market, it must not Blindly pursuing speed, can't find a dealer, and then cooperate immediately, or to take a good look from a long-term perspective, you want to achieve a certain scale in this country, choose partners must be cautious, because During this process, sometimes because of the cooperation of a country, there may be some problems in the selection at that time, and then we will change the partners later. This process wastes a lot of time. Sometimes a wrong partner may be wasted for several years. In the past, we must be cautious in choosing our partners. We must go through various inspections, even if it is slower, but we must not worry about it. We must choose a good partner, and we must have a solid foundation for relying on these local government relations. National policies, including all aspects of customs clearance, these have a very strong support for the development of the future. Continued help.
I mainly talk about these.
Xu Haidong: Thank you, Mr. Chen for his introduction, especially his last experience. It should be that Chinese auto companies should also learn to take lessons from overseas development. We may all understand that if we pay attention to the import and export of Chinese auto products, we must We will know that China has imported more vehicles, and exports should have more parts and components. As we all know, the United States is the largest market for the export of automotive products. Most of them are parts and components, that is, the export of parts and components is An important part of our export of automotive products. Next I would like to ask our President Dechun Chen Chunlin to introduce the development characteristics.
Mr. Chen Chunlin, Chairman of Desai Xiwei Automotive Electronics Co., Ltd.
Chen Chunlin: Before I talk about the entire experience, let me talk about this background. Desai Xiwei was actually a Siemens joint venture before 2010, and Desai Group, a joint venture of 30%, entered into two years of negotiations. In the end, from trying to sell to want to buy, Desai successfully bought the foreign shares. This is a background. When we talk about this background, we are also thinking about it because in the Siemens era we talked about international localization. 2010 After independence, we said that we have traditionally accumulated so-called foreign experience over the years. We have been transformed as Chinese companies should not retain these experiences, or only focus on the Chinese market. At that time we also proposed a localized internationalization approach.
When we clearly defined the strategic plan, we went to Singapore to set up a branch office in Singapore at the end of 2011. That means to take the first step out of the country. Everyone will ask me why they are in Singapore? I think Singapore. As a place where Chinese and Western cultures converge, including myself as well as coming from Singapore, there are so-called human resources. Relatively speaking, building a company there is also more confident. This is the first step.
Next, in Europe we have the background of Siemens, we want to open the European market, we have to set up a company in Europe, so I also established a company in Europe to serve Europe, so we also set up a branch in late 2012, The Japanese company was founded mainly because of our largest overseas customers, the development of the largest business technology, and in order to better serve Japanese customers, we established a branch office in Hiroshima, Japan. When we go abroad, why we need to go abroad, in fact, China? The market is so big that I can choose to focus on the Chinese market without going out of the country. However, based on my many years of experience, the various needs of foreign customers can be different from those of our Chinese customers. They are the requirements that can bring us It is a level that allows us to rethink whether we are doing or not.
At the same time, it is also necessary for my team to retain contact with the outside world. We have always retained a team with international thinking. There are a few puns. It is not so easy to open up overseas markets. Just now Mr. Chen also said that we are When supporting some customers or opening up some customers, he produced locally. Because of the problem of tariffs, we were not actually setting up factories at that time. We were looking for partners. He said that we wanted to set up a factory. It would assemble, or select a partner. In this, I agree with Mr. Chen that finding this partner is a very cautious one.
The second is that when you are looking for a partner, we have manufactured and manufactured many years of experience in domestic manufacturing, quality control, manufacturing of this lean, production technology is very good, when we transfer technology to our partners production At the time, he may not understand this piece, and may cause a waste in production quality. This may be confusing. Therefore, I have also summed up a lesson in this. In this case, I must also clarify the conditions. Since the open attitude is a cooperative partner, I will tell you all of my technology manufacturing for free, but you have to put resources in. At the same time, there must be a so-called management system. People come to learn, and each week will clarify some issues of quality delivery. These are our experiences of going out.
Another one is that I think when we go out, we want to go abroad, in Singapore, in Japan, in Germany, and the general manager of some of the companies outside of us, we all use local people, I have always said that by them In terms of management, the cultural aspect is much better than when I sent people. But now, after several years, I now send engineers to Germany, to Singapore, to stay for two years, to cultivate talents, which is also one of the overseas deployments. We Can send people out to meet overseas customers, to train talented people to come back in two years and three years.
I will talk about it here.
Xu Haidong: It sounds a bit legendary. In fact, Chen always brought back Siemens. It's better than it was. It's my feeling. It seems like it was on the market last year.
Chunlin Chen: Listed late last year.
Xu Haidong: We hope that such enterprises can have more. Xing Department should not comment, this round does not comment, well, the second question, Chery Automobile has always been our China's own brand export first, in fact, is a lot of In years, it is said that they now account for 80% of the total export volume in the 'Belt and Road' countries, so I think we will ask Du Zonglai to introduce us to the next step, that is, from the development process of the 'Belt and Road' project. In the middle, how to introduce some ideas and experiences from the perspective of exploring the market.
Du Weiqiang: Chery’s export volume in 2017 was 118,000. Among them, the total sales of the countries along the “Belt and Road” accounted for more than 80%. This is the first one. We have achieved some results here. Actually, Behind are some strategic layouts. For example, Iran just referred to Iran. We have built an Iranian industrial park in Iran. The total capacity capacity has reached 160,000. Therefore, we must lay out in advance. In North Africa, we also mentioned just now. And this KD project has been built and it has already played its role.
Our experience is that there are several important places in the development of countries along the 'Belt and Road' road. We should be able to think of the principle of 'Belt and Share One Road, One Road, One Road, Together' to share, build and share. We believe that we can not only guide the countries along the route. Many of our methods have actually become a basic principle of China's foreign cooperation. Chery has practiced this process of going out, in the process of 'One Belt and One Road' development, in terms of concept, management, practice, research and development, etc. We are all doing business together, building together, and moving forward together. For example, we said that this morning we have a philosophy that we must have a win-win situation called mutual benefit and win-win progress. We must establish a mutually beneficial and win-win attitude. Only In this moment of time, it brings happiness to the local people. It is the first idea in terms of mutual benefit and mutual benefit.
In practice, not only do we have to increase the manufacturing capacity of our hardware, we increase our existing production capacity, increase some of the new manufacturing capacity in some new countries and regions, and at the same time bring some more With more opportunities for employment and development, this is a large part.
In the second block, we must strengthen localization, serve the local community, and give back to the local community. This is also a basic condition for us to believe that we must succeed. Through our management of concepts in management, we Established in Iran's Institute of Research, design and production constantly improve our products. We have already provided our second-generation or even second-generation products for countries along the 'Belt and Road' line. Some of our vehicles are entering Middle Eastern countries. Entering 100,000 kilometers. In the Middle East the local must be the last 100,000 kilometers, and it must be proposed in many countries for fifteen years. Even in some countries, the concept of lifetime warranty is put forward in the engine.
Therefore, we are adhering to the principle of serving the local customers, and in this respect, we have obtained the acceptance and recognition of the countries where we are located, and we seek for long-term development.
Another is that we need to uphold the core values of our company. We must strengthen our own responsibility. We must return to local society. For example, Iran. Everyone is willing to cite the example of Iran because Iran is a very important node country. Therefore, the earthquake in Iran In the first time, we sent teams to support and carry out local disaster relief activities. Of course, in some Latin American countries, this is often the case. We sponsored their national football team, Hope Primary School, similar to this kind of small football training. Mr. and others wait for these countries to carry out these tasks. Therefore, use this method to spread friendship throughout the country along the route.
The last point is that the countries of the 'Belt and Road' countries have different situations. Each country has put forward many different policies. Sometimes, some policies are very unreasonable, but we have a concept that since you are going to that country, We must obey the local countries' compliance with the policies and regulations of the local countries. For example, in some countries, we immediately followed the laws and regulations. We immediately cooperated with each other and acted quickly. We quickly seized business opportunities. This is one of us in North Africa. When the country got it, when it came out and put other Chinese and European brands out of the picture, we were still talking about it and we started moving. We quickly moved to test the vehicle according to its requirements. , Start working. Now the first one, of course, the first list is also a trade secret, the first one is very huge.
Xu Haidong: He has no choice. Only you are qualified.
Du Weiqiang: Only when we go in, only we seize this business opportunity. In fact, we enter the 'One Belt and One Road' to build a win-win situation together. This is really a very special one, because the 'Belt and Road' countries themselves have a long history in our country. There is a natural sense of intimacy, coupled with our country’s core policy, and common development and mutual benefit. This is a very popular one. When the two are combined, we can achieve success.
Xu Haidong: Thank you, Du Zong for his introduction. It's very true. Just now we talked about the export of Chinese cars. It was the second round that started to go up. I believe that this round should be based on a more pragmatic approach. Last year, we had Chinese export cars. 50% is already assembled locally in KD form, which is a company represented by Chery. It has already begun its migration to some bases for its manufacturing and even R&D experiments, adapting to the local market, adapting to local regulatory changes, and integrating Local society, as a local social citizen, does its own social responsibility. This is a long-term development. It is not that we sell a batch of money that we used to make some money. We will go. I believe the rise of this round is The long term is reliable.
Now let Zhang Jiang from Jianghuai just sum up some things. Jianghuai is very meticulous in this piece. I would like to ask such a question. To Zhang Zong, what do you think is the biggest test faced by independent brands in overseas development?
Zhang Peng: I think just now Chairman Chen also said this matter. He is an international marketer. I think the first one needs global thinking. The global thinking is that you have a strategic layout. This is how you go to clothe. The problem with this bureau is that there is also a local action, that is to say, how do you go about the problem of falling, and the planning that we started didn’t think of the auto industry doing so many factories. But in fact, we’re looking for more breakthroughs. In terms of points, I set up the center of the area to assemble, and then I went to export. In fact, everyone can see that, in terms of globalization of interests or protection of trade or a lot of developing countries, he must develop his own automobile industry, so he also Requirements assembly.
So we are now even in Nigeria. In Sudan, it's relatively backward. We are now assembling our products. What kind of considerations are we going to do? I think it's very important. Jianghuai is doing this, it's The three things must be based on the fact that China’s auto industry is competitive in the end. I think that it is a full competition with global brands in the Chinese market and it will enhance the competitiveness of our own brands. The first point is our quality. Our products are the foundation of ours. The quality of our products is constantly improving. We talk about the reliability of our products, the adaptability of our products, including the conformity of our products. We spread it in Brazil for 1 million kilometers in 18 months. When we have a favorable condition, the whole vehicle can be imported and exported. At that time, the exchange rate was relatively good. Later Brazil adjusted it. No, you have to carry out local assembly. So it puts up its IPI tax, so my The price was originally 70 to 80 percent of the international brand. It should be very good. Add this tax to it. I am more than an international brand. 10% to 20% higher, so we have more than 30,000 units a year at the most, and only 2,000 more at a minimum. So I think you have to make some adjustments like this. It's better. Quality, more abundant categories, like JAC as a commercial vehicle and a passenger vehicle, I think this is better. We can provide both production materials and quality of life.
And our brand, through the good quality we can afford, and always has a rich product line that suits you, and the bargaining power of our brand is constantly improving. What is the standard of judgment in a market? , I failed to succeed in this market. First of all, I entered the segment market share. In addition, our brand’s bargaining power means that the sales price of the truck I sold more than ten years ago was 60% to 70% over 50 years. But now we in Mexico in South America, our sales price is 90% of them, but still our share is still increasing, which shows that after many years of quality and technology upgrades and expansion of marketing services and network development , You provide customers with a better experience, I think this is very important.
So there are good qualities, rich categories, and then you have a brand of accumulation, but in the middle of this process you have to constantly make adjustments, so why do we go from the export of the whole vehicle to the output of scattered rooms, the biggest challenge is localization, Especially in the 'Belt and Road' countries, we are able to adhere to perfect products in China. We have done a lot of data collection and made a lot of improvements for Shi Jixing. When you go abroad for assembly, the pressure is very great, so we Now through DKD, SKD1, is covering a full range of products like this complex assembly. This is a huge challenge. Especially in Africa, it is difficult to assemble a good quality product. Forget it, all are relatively difficult. I think this should be done in order to localize. It is necessary to nurture the motive force and industry foundation of such an industry with continuous development. This is very important for our symbiosis and co-prosperity.
In addition, there is another point. In the future, what are the obstacles to sustainable development in the future? I think this is a big adjustment. It should be said that I can sum up three sentences in a month, that is, many years ago we were integrating global resources. In the Chinese car, in the past ten years we have integrated Chinese resources to create a world car. Although we all talk about doing KD now, we are all going to get this part out of China and assembling it. But people now say that you cannot From China, you have to manufacture at the local level, you cannot simply assemble, and the cost of the RMB exchange rate is constantly rising. How do we digest it, so international brands are vehicles that integrate the world's resources into the world, It is a multi-point layout, including exchange rate issues, including trade hedging issues. I think this may be the most important. That is to say, our Chinese auto industry only has to integrate into the world's industries. How do we get the entire value chain? To make this cake bigger, how to share it, I think it is the most important challenge for future development, and it also contains huge Opportunity, thank you!
Xu Haidong: My understanding of Zhang’s speech should be to say that we are a piece of automobile production. In fact, we have entered a new stage or a new strategy. We have the largest market in China, and of course, all our supply. Chains can be localized in China, but when you go out, you can't rely entirely on China. You want to be global. To achieve the advantages of your products through this global distribution, this may be the future of Chinese cars. When a company goes overseas, one of the problems to be considered is that we now have an advantage because our model has already passed hundreds of thousands of vehicles in China. We take this product out and we have Confidence. But some localization improvements you have, and how is your supply chain going out? There is also a core brand that is actually your brand. Just now I was surprised to hear that, in fact, our light truck, we learned Isuzu. Now that our Jianghuai car can reach 90% of its price in Mexico, we can see that this is what we really compete with our strength. Where is the 10%? In fact, Is the brand, so the next question, I would like to mention to us Brilliance, I would like to ask us Chen, because after Chen came to Huachen, as a market, the market as a kind of special meticulous After listening to him introduce and introduce, what experiences or ideas did China's independent brands have in promoting their own brands and building their own brands?
Chen Kai: When I talk about some of my ideas, I think first of all you want to promote your brand. First of all, it is necessary to figure out what the essence of the brand is. I think there are two things behind the brand. One is quality, the second is Is the service, if you want to advertise your own brand in the local to do the brand well, the premise is to put the quality of the car, put this to a good job, the second service must be in place, only to do this in advance If you don’t have the two things, you can advertise your brand. The brand is not up to earth. So we’re talking about the quality and the quality of cars in Iran. We’re now in Iran. The general manager of Huachen Group personally leads the team and has risen to the height of a group strategy. Our project leader can even report directly to our general manager. If he encounters any problem, he directly directs the solution. In this regard, We are involved in all aspects of packaging from production, and then we all strictly control the quality. In Iran, we sent a large number of technical staff and we are stationed in Iraq all year round. Long, solve local problems in a timely manner.
This is the premise of our brand building. It is to first pass the quality of our products in Iran and pass the service. Then we will go back how to advertise the brand. This is a way and means. Diverse, but in the future we will establish a high-end brand image in the Iranian market. Recently we have just listed a Chinese V7SUV product.
Xu Haidong: Did you have a domestic one?
Kai Chen: The launch of this auto show just listed was also a star product that our group has been striving to build. It is the team that the BMW team sent us to help us carry out the design and control of the quality of the car. And there is a very unique point. This car is equipped with BMW's engine, that is to say, all of our highest level of BMW Brilliance in the true sense, currently, we plan to introduce it to the Iranian market so that we can establish a relatively high-end brand image in Iran. This is just ours Many brands advertise one way and method, but the premise is quality and service. I will talk about these. This is my opinion.
Xu Haidong: These days are the auto shows. In fact, everyone is very concerned about evaluating an auto show. What car is called in the world? This is the world premiere at the auto show in China. Actually, it is also a kind of brand marketing, or to China. In terms of market awareness, we see that Brilliance may report in Iran’s media in Iran that this car is also a global launch in Iran. This is a way to enhance our brand image. Very good. Below, we want to There is a request for this piece of Desai Xiwei’s Chen, which has already been mentioned briefly in Desai Xiwei. We have a concept from international localization to local internationalization, so I would like to ask Mr. Chen to put this piece together. Let’s introduce it appropriately. Let us introduce it to you. Because this is a combination of a simple language and a culture. Whether it is from outside you to China, your culture must be integrated. If you want to go out, you also need to There is no integration of culture in the local culture. You must not be able to survive in that place. That is to say, we are not satisfied with the soil. Here we have Mr. Chen.
Chen Chunlin: When it comes to the localization of localization, it is indeed a cultural aspect. When we deployed our international points, including the establishment of other branches in the future, I emphasized what I said just now, I will definitely use the local People are responsible for the local business, because he is sure that the local laws and regulations are clear to all aspects of the local humanities and culture. Of course, this is where I am also the background of Siemens so I have to find people in various places. In the past, contacts were not a lot of problems, but there are One thing is to say that in establishing two levels of culture, one is the local responsible person. He first does not recognize that accepting or not accepting jobs for Chinese companies will be a psychological challenge. That is to say, in many cases they will think that Chinese companies are paid All aspects of treatment are not affordable to foreign companies. Now we Chinese companies give more outsourcing than foreign companies. In recent years we have made quite a lot overseas. Why is that? Because we can't compare with foreign big local companies. Their offer is very stable. We let them work hard to open up new horizons. The pressure is not the same.
Secondly, we also discovered that our experience includes that if we were headquartered in Guangzhou, communication was often not the same. Our foreign colleagues communicated with the Chinese and the Chinese communicated more implicitly. I still manage you. Many times when we give an example of a financial statement, our German financial manager said I'm sorry I'm on vacation. You wait for me to leave and come back to you. He said no, my report is What will be done on that day, that is to say, who is the head office and who is the branch company? This is also a learning process. For me, this localization of the learning process will surely go through such a process. For several overseas deployments, we are also very fortunate to have local Chinese who are educated or who are studying locally. There are benefits, including in Germany. We have some Chinese people in Singapore. Our overseas branches are one of our headquarters. The bridge, including constant hijacking, he has also learned about the local culture. He is relatively smooth in communication and this is what I can see, but I also insist on it. We can't turn overseas companies into all-Chinese and become Chinese companies. International people from overseas should manage this. So for me, local internationalization is culturally, every year we We will hold two global conferences. Even in Japan and Singapore, we will open and we will truly go global. This money cannot be saved. This point, the so-called local internationalization is an investment that is part of investment and cultural development. Part of it is not saving. If you really get to this point, many times we have too much money to go abroad. This is an investment.
This inside, like this communication, saying that I respect you, you respect me, soon everyone did not say who you are, we are a team as a local internationalization, I think this is a very important measure, so that we can say step by step We will come to us how to copy the company's branches in other companies. How to ensure that the culture of Desai Xiwei can be inherited and reproduced? This is very important.
Xu Haidong: Yes, thank you Mr. Chen. In fact, this integration of internationalization is very simple to say, but it is not easy to do it. Everyone listened to Li Shufu’s speech this morning. I took a photo of him and sent a friend. Circle, I don’t know if everybody has it or not. I’ve used this phrase, and I’ve learned this experience from working with Volvo, so I’m going to dare to cooperate with Mercedes. Don’t underestimate this sentence. Maybe most people don’t Understand that many of our joint ventures, but you are in the process of cooperation, Volvo is a declining situation, it merged it, Volvo is now good or not? Last year, exports to the United States 20,000 units, from the car produced in China to the United States , it is also known by its own indigenous products that it is now a star. In the middle is how it combines its Chinese capabilities with Volvo’s capabilities. It is the ability to integrate this capability. Most of this capability is available to me. Say that most Chinese companies have not yet understood. With this ability, it can use this ability to talk about it. Mercedes can accept it. In fact, many Chinese When companies go abroad, there will be a large number of cases that will also require Chinese entrepreneurs to learn a lot. It is not easy. It is not like the professors of a university say, the integration of cultures, the four words are too simple. How to do it, most will not.
I think after the end of this round, I would like Xing Xing to talk about his thoughts.
Mr. Xing Chuan, deputy director of the Department of Commerce’s foreign trade driver’s office
Xing Chuan: Just after listening to the experience shared by several car executives, I feel that there are two feelings. One is that the questions raised by the moderator are particularly good, the questions are representative, and they are unique to everyone. The two I think that the answer is in-depth thinking and profound theories, and it is a summary of decades of experience. I myself think. Just now I was also thinking that it was a big touch to me. Just after listening to the introduction of several CEOs, I I feel that I have a new understanding of the status and status of my entire auto industry going abroad. I thought it was good. Now that I have a new understanding, this understanding can be expressed in several ways. The first aspect is that our auto industry is moving I think that there are four aspects of the concept of outreach, competence, status, and group collaboration. There are four key words in the concept. The first one, in concept, I think is a win-win situation. The concept has just been mentioned by the CEOs. In the past, our products, especially the medium- and low-end products with their advantages, often went to grab the market and rushed in. After a series of withdrawals, this was our traditional model, especially in the past. The market has happened on motorcycles. But when you listen to our CEOs, we are not trying to seize the market. We are trying to nurture the market. And we need to slow down. In the slow process, we must emphasize that we must have a win-win situation with the local community. We must not only make money on our own, but we must talk to the local government to make them feel happy and have a sense of well-being with the local people. This is a leap in philosophy that will guide our follow-up actions. This is the first concept of mutual benefit. .
The second of our competitiveness has been improved. Just now we have all felt that we are now not only a domestic product that is going out, but we are saying that technology, service, brand, quality are going out, and just now Mr. Chen Say, our culture is even going out. We are using our culture to influence each other. It is a blend of the two sides. We are a blend of localization and internationalization. We have established a research institute in Iran, from the traditional advantages to the real Brand, technology, service, quality, now we haven't reached the standard to go out, I think the next step, how we car will have to go a step further, it may be the standard and culture really go out. But this is already It's not easy, it's the increase in competitiveness.
The third kind of self-confidence I felt in a state. Before, we always feel that when our Chinese auto brand cars are going out or when we look horizontally, we look at other brands. We should look up, but today we feel that we are Head-up, we just mentioned our Jianghuai car. Our price difference from our competitors in the North American market is 50%, and now 90% is basically close. This is our great confidence. We are gradually walking. Just now, The Secretary-General also mentioned that Li Shufu said that we are cooperating with Volvo. We can now cooperate bravely with Mercedes-Benz. This is how I have looked at it with an equal eye. I already have the same energy to do this thing. This is us. The expression of confidence and self-confidence in the entire automotive industry.
The last and very rare thing is dislocation. Just mentioned is a single car, but this dislocation is the automobile industry. Our car is going out in the market. We have this kind of pattern now. We have always It's a market get together, now we begin to find out that we started to differentiate. Some of our North African markets, some of which started in North America in Indonesia, started not everyone getting together to compete in a market for homogenization, but to differentiate The competition of own characteristics, I think this is a kind of benign performance, but also the performance of our car is really mature.
So I feel that at the end of the day, we have to achieve a win-win situation for the entire concept of the car and we are advancing in terms of competitiveness. We are very confident in our state and we have differentiated and even cooperated in the coordination of the whole group. , so I have confidence in our car going out, I wish our car industry is getting better and better.
Xu Haidong: I am very grateful to Xing Department for the wonderful summary. Now I think there is still a little time, I would like to leave an opportunity to give us a few guests on the stage. Do you have any questions you need to make an exchange with Xing Department or say If there is no problem, if we don’t, we will enter the third round of questions. This is fast. The third guest who invited us to present an outlook on the internationalization of Chinese brands is to start from your own business and you will When Chinese auto companies go overseas, you can give a judgment. How long will it take for us to reach the final level we can reach? I would like to invite all of us, because I’d like to say that everyone here is representing Chinese brands. The front line commanders who walk overseas are the front-line commanders. Without their efforts or their leadership, others are false.
OK, I want to start with Du, look ahead.
Du Weiqiang: I think the car must have a big outbreak in the next three to five years. This is because the concept of Chinese cars has started to change. Just mentioned, the products have been upgraded very quickly and the quality has reached a considerable level. Therefore, we will have a great development in fossil fuels and traditional automobiles, but greater development may be in the new forces. New energy, China’s automobiles are indeed promising and have advantages, compared to other Compared to the country, the use of a very fashionable word on a TV called the kingdom of my country is very powerful!
Moderator: Yes, Mr. Du’s words were actually mentioned by Xing Department. In fact, in terms of new energy vehicles, our standards have already begun to go abroad. There is a bus factory in an Asian country, for example, Singapore. He wants to save energy and reduce emissions. The new energy bus was introduced, but he didn't have anything, neither the standard nor the safety requirements of the vehicle. He didn't even get a charge, but what did he do? He just invited the passenger bus in China. Enterprise, you took all your standards to me, went to Singapore, studied with us, finished the study, and I Singapore allowed you to come in. We are actually already exporting our standards.
Next, we invite Zhang Jiang from Jianghuai.
Zhang Peng: I think the charm of the automotive industry is that it integrates all traditional industries and emerging industries and strategic industries. Whether it is traditional chemical industry, including the Internet now driving without driver, including the new energy, so China's auto brands will certainly With the emergence of world-class brands, the emergence of a world-class brand in China also represents the progress of all industries in China in the global market and recognition by global consumers. I think this is still very important. Thank you!
Xu Haidong: We ask Chen Chen of Brilliance.
Chen Kai: China's autos may also have some experience, including this auto show. In fact, the better the quality of the Chinese car is, the more beautiful it is, the more products that are actually produced are still different from the past, and I’m at the same time. The company is also a convinced Chinese car must go to the world, and will certainly go to the world. Now the country's 'One Belt and One Road' initiative has provided us with a good environment for going global, and then we are on the road with the 'Belt and Road' countries. A win-win cooperation will also bring about a win-win cooperation for the automotive industry. I hope that we will also strive for the goal. Through five to ten years, half of China's cars will be exported to around the world. Thank you!
Xu Haidong: Well, a very high goal, I did not expect that 50% of them go out. Actually, the image of a country does not depend on propaganda. It really depends on products. When people outside of China use your Chinese products, it’s actually In advocating your image of China, some of our clothes, some toys, etc. have already gone out. If the car goes out, it really represents the level of a country's manufacturing industry, so we very much hope that Chinese auto companies will get better and better. Here we are. Please ask Chen to speak on behalf of spare parts here.
Chen Chunlin: As a parts supplier, I think that Chinese brands need to build brands. Everyone knows that we have to talk about quality. Quality talks about quality. It's about product quality. The final performance of product quality reflects your comprehensive quality. More importantly, I feel that from the very beginning, from the first step to the final delivery of the product, you must demonstrate the quality of performance at every step. For us, what is the stage of your project? What is the stage of your market? In cooperation with you, you talk to the customer about how the product specification is an attitude. With this foundation, we in China, I think what many people cannot do is our hard work. Our flexibility and diligence is a brand building. When you are at the international level of quality, and at the same time, you can be very diligent and flexible with customer service mentality, this is how we can build a very good brand in the market. Everyone will find you.
Xu Haidong: Yes, thank you, Mr. Chen. China’s auto industry is a late-stage industry. People’s cars have been developing for more than 100 years. We have really started to develop rapidly through reform and opening up. We are now 30 years and 40 years. We are a latecomer, you need to catch up afterwards, others run, how do you chase, so the two roads, the first arduous struggle, what Huawei is studying and mentioning, hard struggle, of course there is a sentence behind Renzhengfei , Do not let the struggler suffer, that is, you must support him in the distribution mechanism. He is struggling to work hard. What is hard work? For eight hours, you do ten hours, I run for more than you, so that I may catch up. Second The efficiency of chasing you is higher than that of others, which means you need to innovate, but the level of intelligence in the countries around the world is similar. God is fair. Every country has people with high IQ and medium IQ, so we need to have A good innovation, if these two points are summed up, it should be said that it is also a characteristic of our Chinese people. Just now Mr. Chen spoke of our diligence. Of course, he also said that he was flexible. Actually, Livelihood is related to innovation. If we go up, we all know that President Xi has summarized four Chinese spirits. The first is the spirit of struggle, the second is the spirit of creation, the third is the spirit of solidarity, and the fourth is the dream. the spirit of.
I think that the last part of our forum today is actually trying to make people dream. When Chinese auto companies go abroad, we will go to what extent. I believe that with the support of the four spirits, China The automobile industry will surely succeed, and it will certainly become an important pole in the world's automotive industry.
Thank you, distinguished guests. Thank you also for your audience. Thank you!