Sinotruk promotes growth in Central Asia

China's largest heavy truck exporter, China Heavy Truck Group Co., Ltd., is looking for new opportunities from the Silk Road Economic Belt and the 21st Century Maritime Silk Road Initiative, and is striving to make breakthroughs in the Central Asian market.

Chairman Ma Chunji told China Daily: "As Central Asia advances the "One Belt One Road" strategy, Sinotruk will embrace new opportunities for cooperation with Central Asian countries.

President Xi Jinping proposed the “Belt and Road” initiative when he visited Kazakhstan and Indonesia in 2013.

Sinotruk was established in 1956 and produced China's first heavy truck in 1960.

In 2007, Sinotruk was listed on the Hong Kong Stock Exchange. In 2009, it established a long-term strategic partnership with German truck manufacturer MAN, which purchased 25% of its shares for 783.5 million US dollars. Sinotruk has obtained a series of advanced technologies including engine technology from its German partners.

Sinotruk has four brands-Sitrak, Howo, Steyr and Hohan-covering more than 3,000 vehicle models, the largest number among Chinese truck manufacturers.

According to statistics from the General Administration of Customs, in 2014, Sinotruk exported 34,000 vehicles, accounting for nearly 20% of its total sales. Statistics show that the company’s export revenue exceeds 9 billion yuan ($1.45 billion), accounting for approximately 13% of its total revenue.

In the first quarter of this year, Sinotruk sold 43,000 vehicles in the domestic market, including 25,000 heavy-duty trucks, and its market share increased by 1.66%, while the overall sales of heavy-duty trucks in the entire region fell by 33%. country.

The company also exported 10,035 heavy-duty trucks in the first quarter, a year-on-year increase of 8%.

In the past 60 years, China National Heavy Duty Truck has always adhered to the "going out" strategy and vigorously explored overseas markets.

Ma Yun said: "In the context of globalization, Sinotruk should seek an international strategy so that the company can maintain and expand its achievements through industrial restructuring and reform."

Liu Wei, deputy general manager of Sinotruk, said that the company has set up 40 representative offices overseas and cooperated with more than 160 dealers.

Liu, who is in charge of the company's overseas business, said: "Our products have not only won recognition from customers in Africa, South America, Central Asia and the Middle East, but also from customers in developed countries including Ireland and New Zealand."

He said: "The territories of the five Central Asian countries are an important part of the ancient Silk Road and played an important role in promoting exchanges between Asia and Europe."

He said: "With the implementation of the "One Belt One Road" initiative and the accelerated development of the Asia-Pacific Free Trade Area, we will pay more attention to the Central Asian market and strive to make breakthroughs in entering the market."

Ma Yun said that the Central Asian market is one of the most important overseas markets for Sinotruk. Liu said that the company has established a complex trading network covering the area's car sales, after-sales service, parts supply and image building.

Sinotruk has established four representative offices in the region and sold more than 15,000 vehicles to local customers.

Since 2011, Sinotruk has exported more than 8,000 heavy-duty trucks to Kazakhstan, contributing to local urban construction and industrial development. The company's Howo brand has won recognition from local customers and has become a symbol of China's heavy trucks.

With the introduction of new products, including Howo-T7H, V7G and T5G, more and more dealers and customers have shown interest in the company's trucks.

Sinotruk is negotiating with local manufacturers to open a factory in the country. When Premier Li Keqiang visited the country in December last year, he signed a memorandum of understanding on this issue.

In Uzbekistan, Sinotruk’s 4S store is the largest in the local market. Since 2011, the company has exported nearly 2,000 heavy-duty vehicles to the country. The company started selling compressed natural gas dump trucks to customers in the country in 2013 and has sold more than 300 vehicles.

In Turkmenistan, more than 3,000 heavy trucks of the Howo brand are used.

In Kyrgyzstan and Tajikistan, at the request of the local government, Sinotruk began to provide heavy-duty trucks whose engines comply with Euro IV emission standards.

Ma Huateng said: "As China's largest heavy-duty truck manufacturer, Sinotruk will continue to provide customers in Central Asia with high-quality products and services."