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. Guests 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 of Indian Akok Leland Truck Company. Below is an interview with Xing Wenjun during the forum. China Automotive News (CBU): How has JAC International’s export performance compared to last year? Miao Cairong: In 2007, JAC's exports were primarily focused on commercial vehicles, growing by 130% compared to 2006—essentially doubling. In terms of revenue, the growth was even more significant. In 2006, we reached $50 million, and in 2007, it surpassed $1.5 billion, which was a quadruple increase. Additionally, there have been changes in product structure, with a greater emphasis on commercial vehicles and heavy trucks. This segment has shown 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 launched its heavy truck line in 2005, so it's only been two years since they hit the market. CBU: What percentage of JAC’s exports are heavy trucks? And how does the $250 million for 1,000 units compare? 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 about 250 million yuan or nearly $10 million. That accounts for roughly 30% of our total export volume of 150 million yuan. These include a full range of heavy trucks such as tractors and dump trucks. Another key development this year is that while we continue to focus on commercial vehicles, our SUVs and MPVs are being tested as prototypes in several countries. We conduct market tests and improve products based on consumer feedback. Product certification is also aligned with local regulations. This process helps us select the right products and partners, both of which are crucial. CBU: Can your prototypes be given to multiple partners? Miao Cairong: Yes, we can test different models first, often starting with light trucks. They may not be sold immediately, but after testing, we evaluate potential dealers and look for the best partnerships. Another method is showcasing the products at events, which has proven very effective. CBU: Are your current export strategies exclusive? Miao Cairong: It varies. In key markets, we prefer exclusive arrangements with trusted partners because exclusivity reduces operational risks. Our export markets are mainly concentrated in Southeast Asia, with some presence in Central Europe, the Gulf, North Africa, and expanding into other oil-producing regions. Eastern Europe, particularly Ukraine and Russia, is another important area, along with South America. CBU: Does JAC have local personnel in these major export markets, or do you rely on agents? Miao Cairong: We are gradually taking control of these markets, including sending staff to stay and build stronger relationships. CBU: What are your export plans for next year? Miao Cairong: We aim to export around 28,000 units, with sales revenue reaching nearly $250 million. CBU: Is it possible for Bin Yue to go international? Miao Cairong: As soon as the product is ready, we will target both domestic and international markets. We already have a significant order—around 1,000 units—being negotiated for export to developing countries. CBU: When do you plan to enter European and American developed markets? Miao Cairong: Chinese companies must approach developed markets with caution. These are highly competitive and require thorough preparation. Entering the EU, for example, requires meeting strict standards and selling within specific countries. While we are working toward this goal, it will take time—possibly a year or more. CBU: Although Bin Yue uses Italian design and has R&D centers there, does the design meet the latest EU safety and recycling standards? Miao Cairong: No formal tests have been completed yet, so we can't confirm. Meeting standards is one thing; achieving them is another. We follow high standards, but actual implementation requires further validation. CBU: What is JAC’s core competitiveness in the export market? Miao Cairong: The key lies in understanding customer needs and delivering the right products. We emphasize quality, efficiency, and strong partnerships. While Chinese products are often seen as low-cost, we ensure quality is not compromised. Communication and collaboration with partners are essential. CBU: Why are JAC’s domestic products more expensive than similar ones? Miao Cairong: Our trucks are priced about 10% higher than comparable models. The success of our buses comes from superior chassis quality and better after-sales service, which customers value more than just price. CBU: Do you think four-wheelers are suitable for rural users instead of three-wheelers? Miao Cairong: Yes, we’re developing 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 market? Miao Cairong: The passenger car market is highly competitive, especially in Europe and the U.S. We need to match quality, service, and value. Korean cars are cheaper, so we need to offer better value. Japan and South Korea benefit from large-scale production, which we are still building. CBU: Despite being a state-owned enterprise, JAC maintains a 40% annual growth rate. How? Miao Cairong: State-owned enterprises have unique advantages. Our employees are loyal and motivated, and we share company success with them. Our flexible operating mechanism and strong government support also contribute to our growth.

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