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Chinese brand cars enter the African market

       The reporter recently saw an automated production workshop at Beiqi Foton in the suburbs of Beijing. A Futian “Auman” heavy truck was being assembled. According to Yu Bo, deputy general manager of its Overseas Business Department, the heavy trucks will be delivered to African car dealers in Africa and Tanzania before the end of the year. Yu Bo said that in recent years, Africa's economy has developed rapidly, with an average annual GDP growth of about 5%, which is higher than the average global growth rate. Demand for automobiles is increasing day by day. Reynolds Africa’s Vice President Kugler had expected this year that the total sales of the African automobile market will reach 1 million. In the next 10 years, the development potential of the African automobile market will be comparable to that of South America.

        Chinese brand cars enter the African market

        The reporter recently saw an automated production workshop at Beiqi Foton in the suburbs of Beijing. A Futian “Auman” heavy truck was being assembled. According to Yu Bo, deputy general manager of its Overseas Business Department, the heavy trucks will be delivered to African car dealers in Africa and Tanzania before the end of the year.

Yu Bo said that in recent years, Africa's economy has developed rapidly, with an average annual GDP growth of about 5%, which is higher than the average global growth rate. Demand for automobiles is increasing day by day. Reynolds Africa’s Vice President Kugler had expected this year that the total sales of the African automobile market will reach 1 million. In the next 10 years, the development potential of the African automobile market will be comparable to that of South America.

        Based on this, Chinese brand cars rely on cost-effective and relatively inexpensive prices to accelerate the “carriage-in” of the African automobile market dominated by Europe, America and Japan, and begin local production.

        It is reported that since the beginning of 2011, Foton Motor has started construction of an African production base in Kenya. In February 2012, China FAW Group cooperated with the China-Africa Development Fund to jointly invest in the construction of a car assembly plant in South Africa. In March, Geely Automobile and Egypt’s GB Auto signed a full-scale supply and assembly cooperation agreement and a total distribution agreement in Egypt and began to enter the market in North Africa.

        The head of the Chery Automobile Information Department stated that Chery Automobile is leveraging the resources and platforms of the China-Africa Development Fund to accelerate the pace of investment in the African market, and establish a joint venture company or subsidiary company in the core market according to local conditions and in a step-by-step manner. Control the African market.

        In response to the current status of infrastructure and road conditions in Africa, Chinese brand cars also do as they do in the rural areas, and are constantly improving their cars exported to Africa or produced in Africa in order to better adapt to the African market. Yu Bo said that Foton Motor equipped high-powered fans and high-powered fans for commercial vehicles exported to the highlands of Kenya, and equipped some models with large-capacity fuel tanks to cater for long-distance logistics transportation. According to Great Wall Motor’s (19.44 -0.51% share bar research report) International Brand Division personnel, the company has developed a specific model based on the preference of right-hand rudder autos for South African women consumers. Since the launch in mid-2011, the company has now sold 1,000. More than one vehicle, Great Wall Motor also made some improvements to the power of some gasoline models.

        Not only that, Chinese car companies also actively improve their after-sales service network in the African continent and increase their market share in the African automobile market. For example, Great Wall Motors established a spare parts center in South Africa; Foton Motor launched a “night maintenance” service that is popular among African automotive users.

        It is understood that Foton Motors is expected to sell 9910 vehicles in Africa this year and realize sales revenue of approximately 220 million U.S. dollars. The annual sales volume of 200 sales networks established by Great Wall Motor in Africa has exceeded 25,000 vehicles. Chery Automobile predicts that this year's sales in the African market will reach 27,000 units, a record high.


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