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. Contracts of more than 2,400 buses are
concluded by Yutong last year, amounting to 150 million US dollars, a new record
for China bus industry. 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 bus 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 China bus
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 bus produced in Cuba, and the
bus produced must be labeled with Yutong trademarks. Therefore, both the bus themselves
and the brands are exported.
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