Sell ​​the right product to the most suitable customer

Editor's Note: On December 12–14, the chief editor of China Automotive News, Xing Wenjun, hosted the first “Truck Passenger Car World Forum” in Lyon, France. The event featured a panel discussion on the heavy vehicle markets in China and India. Attendees included An Qingheng, Deputy General Manager of Dongfeng Commercial Vehicle Co., Ltd.; Huang Gang, General Manager of Jianghuai Automobile International Co., Ltd.; Miao Cairong, Senior Vice President of Renault Truck International; Emmanuel Levacher; and Rajinder Malhan, Director of the International Department at Indian Akok Leland Truck Company. They delivered insightful speeches, and the following is an interview with Xing Wenjun during the forum. China Automotive News (CBU): How has JAC International’s export performance looked this year compared to last year? Miao Cairong: In 2007, JAC’s exports were primarily commercial vehicles, showing a growth of 130% over 2006 — effectively doubling. In terms of revenue, the increase was even more significant. In 2006, we reached $50 million, and by 2007, we surpassed $1.5 billion, which actually represented a quadrupling. Additionally, there have been notable changes in product structure, with commercial vehicles and heavy trucks becoming more prominent. This sector saw strong performance this year. In 2006, we didn’t export any heavy trucks. However, this year, we expect to export around 1,000 units. Domestic sales of heavy trucks range between 9,000 and 10,000 units annually. CBU: When did JAC start producing heavy trucks? Miao Cairong: JAC officially began producing heavy trucks in 2005, two years ago. That was when the first batch hit the market. CBU: What percentage of JAC’s exports are heavy trucks? How big is that 1,000-unit figure in terms of value? Miao Cairong: Heavy trucks make up a significant portion of our exports. The unit price for these 1,000 vehicles ranges from 200,000 to 250,000 yuan, totaling approximately 250 million yuan or nearly $10 million. This accounts for about 30% of our total 150 million yuan in exports. These include a full range of heavy trucks, such as tractors and dump trucks. Another key development this year is that while our exports are still mainly commercial vehicles, we’ve started testing SUVs and MPVs as prototypes in many countries. We conduct market tests and improve products based on consumer feedback. Certification in the local market is synchronized with this process. We follow this strictly to ensure we choose the right products and suitable partners. CBU: Can your prototypes be given to multiple partners? Miao Cairong: Yes, we can have several prototype models tested, starting with light trucks. They aren’t necessarily sold immediately. After testing, we discuss further cooperation with dealers. We aim to find excellent partners. Another method is showcasing the products at exhibitions, which has proven very effective. CBU: Are your current export strategies exclusive? Miao Cairong: It varies. In key markets, if we select a top-tier partner, exclusivity is essential. Without it, the partner might worry about operational risks. Our export strategy aligns with the broader Chinese commercial vehicle market. Southeast Asia remains a primary focus, with some presence in Central Europe, the Gulf, and North Africa, now expanding into other oil-producing regions. Eastern Europe, particularly Ukraine and Russia, and South America also show growing demand. CBU: Does JAC have its own personnel in these major export markets, or do you rely on agents? Miao Cairong: We are gradually taking control of these markets, making efforts to send people to stay and establish a stronger presence. CBU: What are your plans for exports next year? Miao Cairong: Our goal for next year is to export around 28,000 units, with sales revenue reaching nearly $250 million. CBU: Is Bin Yue planned for international export? Miao Cairong: As soon as the Bin Yue model is launched, we will target both domestic and international markets. We are already in negotiations for an order of around 1,000 units for developing countries. CBU: When do you plan to enter European and American developed markets with JAC’s commercial and passenger vehicles? Miao Cairong: Chinese companies should approach developed markets rationally. These are highly competitive and important, so breakthroughs require thorough preparation. For example, entering the EU through a specific country means selling only there, not across the entire region. To meet EU standards, we need time and effort. It may take one or several years before we’re fully ready. CBU: Even though Bin Yue uses Italian design and has R&D centers there, does the design meet the latest EU regulations on pedestrian safety and vehicle recycling? Miao Cairong: No official conclusion can be drawn until formal testing is completed. Whether the design meets the requirements and whether it can be achieved are two different concepts. While we strive for high standards, actual implementation requires validation. CBU: What is the core competitiveness of JAC products in the export market? Miao Cairong: The fundamental principle is to sell the right products to the right customers. Market laws are universal, and success factors must be adapted. JAC’s success in China stems from deep market analysis, understanding customer needs, technological competitiveness, quality, efficiency, and strong partner relationships. We also emphasize communication and collaboration. CBU: Why are JAC’s domestic products more expensive than similar ones? Miao Cairong: In the domestic market, our trucks are about 10% pricier. The success of our buses lies in their superior chassis and higher after-sales service expectations. Buses serve city routes and companies, requiring better durability than regular trucks. CBU: With a large agricultural vehicle market in China, what is your stance on four-wheelers for rural users? Miao Cairong: Yes, we are producing economical light trucks and will continue focusing on standard models. Quality and competitive pricing remain our priorities. CBU: What challenges does JAC face in the passenger car segment, including MPVs, SUVs, and sedans? Miao Cairong: The passenger car market is highly competitive and mature. Entering Europe and the U.S. will bring pressure on quality, service, and value. Korean cars are currently more competitive due to economies of scale, and Chinese cars need to catch up. CBU: JAC has never had a joint venture and is a state-owned enterprise. Despite this, it maintains a 40% annual growth rate. How is this possible? Miao Cairong: State-owned enterprises have unique advantages. Our employees share a sense of belonging, and company growth is reflected in individual contributions. We also enjoy strong government support and maintain a flexible operating mechanism, allowing us to adapt quickly and grow sustainably.

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