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Analysis Of Special Purpose Vehicle Exporting Market

Analysis Of Special Purpose Vehicle Exporting Market

Jul 30, 2020

Southeast Asia Main Market---------Vietnam

Vietnam will vigorously develop the auto parts industry in the next 5 years

 

The Ministry of Industry of Vietnam recently stated that in the next five years, Vietnam will vigorously increase the proportion of localization of auto parts, especially light truck and bus parts, while promoting the export of domestic cars and parts.

 

From 2005 to 2006, the development goal of Vietnam's automobile industry is to achieve 33% localization of light trucks, and 40%-50% of the localization of light trucks and bus bodies. By 2010, Vietnam will increase the localization ratio of all kinds of automobiles to 50%, among which light trucks and buses will reach 100%. So far, none of the 90 local car assembly plants has concentrated enough investment and production on important parts of the car, including engines and gearboxes.

 

According to the development strategy of Vietnam's automobile industry by 2011 and the 2020 target, the Vietnamese government encourages various economic sectors to engage in the production of automobile parts, especially engines. Public and special vehicle projects such as the production of light trucks, oil tankers and ambulances will enjoy preferential policies in terms of land, loans, technology transfer and research and development.

 

In the first six months of this year, Vietnam's imports of automobiles and parts amounted to approximately US$513 million, a year-on-year increase of 45.8%.

 

Currently, Vietnam owns 1 car for every 145 people. There are 13 joint venture factories nationwide, with an annual production capacity of 173,000 vehicles.

 

Africa Market-------South Africa, Angola, Libya, Ghana, Nigeria

South African commercial vehicle demand rises

 

South Africa is rich in mineral resources, and mining is the lifeblood of South Africa's economic development and the main source of government revenue. Many minerals occupy an important position in the world. Among them, the reserves of gold, manganese, platinum and palladium rank first in the world. Although the output of South African gold mines declined in 2008, the output of platinum group metal mines and coal mines continued to grow. With the mining of new mines, the demand for trucks and construction machinery tires will become more apparent.

 

From 2005 to 2009, the average annual growth rate of sales in the South African commercial vehicle market was 3.3%. Affected by the financial crisis, the commercial vehicle market in South Africa declined in 2008, but it has begun to recover this year and is expected to maintain a growth trend until 2014. It can be seen that the abundant mineral resources and the annual increase in commercial vehicles have led to the increasing demand for truck and bus tires in the South African market. The latest data released by the South African Automobile Manufacturers Association also shows that the South African automobile market is recovering strongly. In May, total car sales in South Africa reached 39,176 units, a surge of 35.4% year-on-year, maintaining a substantial growth momentum for five consecutive months.

 

In addition to the continuous improvement in the economic situation in South Africa, stable new car prices, relatively low loan interest rates (accumulatively reduced by 5.5% since 2008), and banks' increased support for loan purchases are also important reasons for the substantial growth in new car sales. In addition, after the World Cup is held, car rental companies are also key factors in buying cars.

 

Middle East Market--------Iran, Dubai

Analysis of the Middle East Commercial Vehicle Market

 

The Middle East is rich in oil resources, making its economic development much higher than the world average. It is estimated that the GDP growth rate in 2009 will be 7 times the global average growth rate. In the field of commercial vehicles, benefiting from the steady growth of the local construction, freight, tourism, retail and service sectors, some research institutions predict that from 2008 to 2010, commercial vehicle sales in the Middle East will increase by 21%, and by 2012 the Gulf region The growth rate of commercial vehicles will reach 33%.

 

According to a large number of market research conducted by Sinobo's resident marketing specialist in Dubai, Dubai has the most engineering projects in the world, and therefore the demand for engineering commercial vehicles ranks first in the world. At present, China's "Jiefang(FAW)" brand engineering vehicles have become the choice of most construction engineering companies; in terms of transport vehicles, India's "Tata" brand vehicles currently occupy most of the market.

 

Compared with 2000, the UAE's commercial vehicle market in 2005 increased by 38.5%. In recent years, the momentum of development has been even greater, and even the sales volume of some dealers has reached the annual sales volume of 2007 in 2008 alone. 3 times. As world-renowned manufacturers have increased investment in the Middle East to reduce transportation costs, the sales volume of commercial vehicles in the Middle East is expected to reach US$10 billion by 2011.

 

Five Central Asian Countries

 

China News Service, Urumqi, July 7 (Reporter Sun Tingwen) According to the latest news from Urumqi Customs, the Xinjiang port exported 2,325 cars from January to May, valued at US$98.294 million, an increase of 46% and 45% respectively over the same period last year. Trucks were the main export vehicles, and the main export country was Kazakhstan, which accounted for 36.6% of the total auto exports at Xinjiang ports during the same period.

In addition, Xinjiang's exports of automobiles to Turkmenistan and Uzbekistan in Central Asia increased significantly, increasing by 2 times and 1.6 times year-on-year, respectively, accounting for 43.5% of Xinjiang port exports during the same period. This set of data shows that the demand for Chinese cars in the Central Asian market remains strong.

 

According to relevant sources, as the economic conditions of neighboring countries in Xinjiang, such as Kazakhstan and Turkmenistan, gradually improve, the increasing demand for automobile consumption has brought business opportunities for China's domestic automobile exports. Moreover, China's domestically produced cars are inexpensive and good-quality, especially large trucks, special-purpose vehicles and light passenger cars. Manufacturing technology is becoming more mature. Compared with similar cars in European countries, they have a cost-effective advantage, which has driven a substantial increase in automobile exports at Xinjiang ports.

 

With the improvement of the economic situation and the impact of sales stimulus policies, the export volume of automobiles at Xinjiang ports has increased month by month. In May, 661 vehicles were exported at Xinjiang Port, a year-on-year increase of 79.1%, valued at US$26.172 million, a year-on-year increase of 78.6%.

 

This strong demand was already evident in the first quarter of this year. In the first quarter, Xinjiang exported 915 cars, an increase of more than 30% over the same period last year. Among them, the Khorgos port on the border between China and Kazakhstan exported 798 cars, accounting for 87% of the total export value. The port has become the largest automobile export port in Northwest China.

 

As the number of domestically-produced cars "going westward" has steadily increased year by year, currently only Xinjiang export car dealerships have established more than 40 Chinese cars in Russia, Tajikistan, Kyrgyzstan, Uzbekistan, Kazakhstan, Azerbaijan and other countries. After-sales service stations and 63 marketing service points.

 

South American market-South American market will set off "Chinese style"

 

In the past two years, the sales of domestically-produced automobiles in Chile have increased rapidly. In the first 10 months of 2008, China exported 15,600 automobiles to Chile, with a market share of 6.8%. Among the main sources of automobile imports in Chile, China Ranked third, second only to South Korea and Japan. At present, 14 companies including FAW, Dongfeng, Shaanxi Automobile and Foton have sales in Chile and Peru, and the market is broad. Compared with other export markets, from January to August this year, Peru still rose to the 14th place in the ranking of China's auto export countries. Among them, commercial vehicles have become the main force in automobile exports. In addition to Chile and Peru, Chinese commercial vehicles have entered the markets of Venezuela, Colombia, Ecuador and other countries.

 

On April 28, 2009, China and Peru formally signed the China-Peru Free Trade Agreement. According to the agreement, 90% of the tariffs on bilateral trade between the two countries will be gradually eliminated. This is also the time when China and Chile signed a free trade agreement in 2005 Since then, China has signed the second free trade agreement with Latin American countries.

 

South America is one of several key markets for China's auto exports, and commercial vehicles have a large market space in South America. In the past, China's commercial vehicle exports to Russia were relatively large, but after Russia imposed tariff barriers, the market fell into a desperate situation. Now, Africa and the Middle East have better exports. "South America is a market with great development potential. South America has relatively strong consumption power. And the South American market is different from Africa and the Middle East. The African financial system is relatively poor and the payment is slow. The Middle East is more affected by the oil economy. South America has its own. At the same time, import and export trade tariffs are relatively low. For example, China’s export tariff on Chilean vehicles is only 5%.