Four European Subsidiaries of CIMC Vehicles attend IAA 2018
The 67th International Commercial Vehicle Hanover (IAA 2018), which attracted worldwide attention, was held in Hanover, Germany from September 22 to 29. Four European subsidiaries of CIMC Vehicles showcased six world-leading products mainly for the European market at the 900m2 booth. The six vehicles are: tank semi-trailers from Belgium LAG (2 models, 3-axis), flatbed semi-trailer and low dropside semi-trailer from UK SDC (2 models, 3-axis and 4-axis), a large-capacity van semi-trailer from Netherlands Burgers (3-axis), and a swap body from CVEG. During the interview with CIMC Vehicles, I met with Mr. Ye Jianfeng, Director of the Global Business Development Department of CIMC Vehicles, and Mr. Zhang Ling, CEO of LAG of CIMC Vehicles. I asked them to give a brief introduction to CIMC Vehicles' participation in this exhibition and its operation in the European market.
Two tank semi-trailers (liquid tank, powder tank) produced by LAG
According to Mr. Alan Zhang, the six products on display are produced by four European subsidiaries of CIMC Vehicles. Two tank semi-trailers are produced by LAG, including one vertical powder tank semi-trailer and one stainless steel liquid tank semi-trailer. One large-capacity double-deck van semi-trailer is produced by Burgers (either height of the upper and lower floors is 183cm). The special feature of this semi-trailer is that it maximizes the use of the interior volume through special design under the height limit of 4m in Europe, so as to meet the demand of customers to carry more goods. One 4-axis flatbed semi-trailer and one 3-axis low dropside semi-trailer are produced by SDC which was acquired by CIMC Vehicles two years ago. SDC now has the largest market share in the UK. One swap body is produced by CVEG.
As for the marketing strategy of CIMC Vehicles in the European market, CIMC Vehicles has adhered to the business tenet of "global operation with the wisdom of local employees" to expand the global markets these years, said Mr. Danny Ye.
One 4-axis flatbed semi-trailer and one 3-axis low dropside semi-trailer produced by SDC
Regarding the progress that CIMC Vehicles has made in the European market, Mr. Danny Ye humbly pointed out that Europe is a big market and an important target market for CIMC Vehicles. However, the business volume of CIMC Vehicles in Europe is relatively small compared with that in the United States or China, which leaves a relatively large space for the development of CIMC Vehicles in the European market. Therefore, as a part of the future plan, CIMC Vehicles will further develop the European market with its advantageous resources. In terms of the strategy, "CMC will not regard the European market as a whole, but will deploy our teams, products and other resources depending on countries, industries and needs. We will work steadily to provide quality products and services and gradually extend our reach to all areas of the European market, thus increasing our market share in Europe," said Mr. Danny Ye.
As the CEO of LAG, Mr. Alan Zhang explained that although CIMC Vehicles's production and sales of semi-trailers have been ranking first worldwide for many years, it is very difficult for us to rise steadily to an excellent market position in the European commercial vehicle market which is highly competitive and requires the highest technology and quality. This is also the result of the company's correct leadership and team effort.
Danny Ye (right), Director of the Global Business Development Department of CIMC Vehicles, is interviewed
As a subsidiary of CIMC, CIMC Vehicles, since its foundation in 2002, has been committed to building itself into a trustworthy world leader in the semi-trailer industry. With its advantages in management, technology, brand and supply chain, CIMC Vehicles has integrated global resources, realized scale expansion, and gradually built a complete semi-trailer global operation system. In recent years, CIMC Vehicles has taken the lead in China in building a "lighthouse plant" with modular design and digital production line as the core, and exploring a path of smart manufacturing and upgrading from "quantitative change to qualitative change," thus lighting a "navigation beacon" for itself and the industry.
Alan Zhang (left), CEO of LAG of CIMC Vehicles, is interviewed
In addition, CIMC Vehicles sold 163,000 semi-trailers (and special-purpose vehicles) in 2017, with a 32.41% year-on-year increase; sales revenue was RMB 19.521 billion, with a 32.84% year-on-year increase; net profit reached RMB 1.018 billion, with a 32.78% year-on-year increase, maintaining the momentum of rapid growth. The growth in revenue and net profit was mainly due to its strong performance in China, better-than-expected revenue in Europe and North America, and a rebound in some parts of emerging markets. Since 2013, CIMC Vehicles has been the world's largest semi-trailer manufacturer in terms of production and sales for four successive years.
