February 28, 2020

President of Volvo Truck China: open China market or domestic

Lu Botian, President of Volvo Truck China:

"China is the world's largest truck market. Any truck giant wants to enter China. But China is very different from other markets. Local brands are strong and occupy more than 90% of China's share. Other brands want to enter. China also needs to achieve a joint venture."

Germany (MAN) premium shares in Sinotruk, Jianghuai Automobile intends to set up a joint venture heavy truck company in Hefei with US Navistar, Caterpillar joint venture...... The joint venture in the field of domestic heavy truck recently entered a new stage. Recently, Lu Botian, the president of China who came to Guangzhou to participate in the first Volvo Truck National Driver High-Efficiency Fuel Saving Competition in China, said in an interview with reporters that to open the Chinese market, it is ultimately necessary to achieve domestic production through joint ventures.

Through Nissan Diesel

Achieve cooperation with Dongfeng

"China is the world's largest truck market. Any truck giant wants to enter China," said Lu Botian. "But China is very different from other markets. Local brands are strong and account for more than 90% of China's share." And other brands want to enter China must also be achieved through joint ventures."

Although the imported heavy truck has the advantage of technology and brand, but the price of more than 800,000 yuan in the 200,000 to 300,000 yuan in front of China's domestic heavy truck brand can not withstand the attack, can only occupy a tiny high-end heavy truck market, domestic production to reduce costs It is an inevitable choice, but previous heavy-duty joint ventures were not successful.

Volvo Trucks has been reluctant to disclose the amount of possession in China, but Lu Botian accidentally “leaks” the “stranger” during his speech – there are about 8,000 vehicles in China, and the southern district market represented by Guangdong. It's about 1000 cars. As the world's largest single heavy truck brand, Volvo's inventory in China is still less than one month's sales of domestic heavy trucks, showing the gap between imported trucks and domestic trucks.

Volvo has also had joint venture experience in China. As early as 2004, it established a joint venture with China National Heavy Duty Truck Co., Ltd. Jinan Huawo Co., Ltd., but eventually dissolved. Lu Botian does not comment on the progress of Volvo’s domestic projects in China. “We mainly promoted cooperation with Dongfeng through the group's Nissan Diesel,” he said. “If there are other joint ventures, we will announce it in a suitable way.”

Training technology to save fuel

Although the inventory in the Chinese market is not large, Volvo Trucks also tried to maintain its influence in China. The fuel-saving competition is the latest example. The competition lasted for 4 months and experienced East, West and South. After the semi-finals of the four northern regions, the championship was decided in Guangzhou. Zhang Bin, from Wenzhou Pearl Logistics Co., Ltd. in Zhejiang province, won the championship. He will go to Volvo Sweden headquarters in Stockholm to study.

It is reported that Volvo Trucks, as a production tool, has an annual transportation mileage of 300,000 kilometers, and 100 kilometers of fuel consumption is 30 liters. The driver training can save up to 20%, which is equivalent to creating profits for users. "Through this activity, the word-of-mouth communication effect has increased, and it also helps us expand sales," Lu Botian said.

View related topics: Joint venture hot car

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