Changes in Truck Joint Venture: China Has Been Dominated by Passive Change


At 55:45, the bottom line of the Sino-foreign joint venture was broken again.

Recalling that the joint venture of the truck industry has dominated from the previous strong foreign forces, only foreign brands, such as Guangzhou Automobile Hino and Dongfeng Nissan Diesel, have been used to develop the use of dual brands, such as Hongyan and SAIC Iveco. To be led by the Chinese side, or more precisely, the Chinese market, to build the Chinese brand.

In the years of Sino-foreign truck joint ventures, the power of the Chinese side to speak from weak to strong has even exceeded the 50:50 joint venture bottom line. The increase in the strength of domestic enterprises is the courage to dare to compete with these self-perpetuating transnational squads. In addition, the reason why the Chinese side can force foreign countries to withdraw from each other step by step is also because they rely on China's gold and mineral market such as logistics and freight transportation. This is an important bargaining chip they negotiate with these big brothers.

China’s growing position

In 2010, the Chinese truck industry set off a new wave of joint ventures. Unlike the previous round of joint ventures, the joint venture and cooperation represented by the joint venture between Foton and Daimler entered a new period of development. With the latest wave of joint ventures, the power of Chinese companies has been greatly enhanced.

In the past, joint-venture companies used foreign companies to invest in technology and brands. China invested in kind and cash and produced foreign brands. After verifying that this road did not succeed in China and experienced a previous round of joint venture failure, Chinese and foreign parties, after rethinking, showed a more open mind in the post-joint venture era. The foreign side has liberalized the restrictions on brands and networks. China has also acquired capital cooperation while acquiring technology.

In the new round of joint venture cooperation, the foreign party will use technology and funds to take shares. The Chinese party will use the existing medium and heavy truck business to acquire shares and produce Chinese brands. In terms of overseas strategy, China can also obtain foreign network support.

After Mann's share of China National Heavy Duty Truck, China National Heavy Duty Trucks is allowed to sell TGA-lift trucks in distributors with good global performance. At the same time, through cooperation with Daimler Global, Foton can use Daimler's brand, global market, management, etc. Resources to promote the globalization of Foton.

On January 26th, China’s dominance took a further step. Dongfeng and Volvo broke the long-term distribution of peer-to-peer ratios between the Chinese and foreign parties with a new joint venture model of 55:45. It is said that the Chinese strength and the right to speak have been enhanced. Outstanding performance.

Compared with other automobile joint ventures, another difference between the Dongfeng-Volvo joint venture is that the name of the foreign company does not appear in the name of the joint venture for the first time. The appearance of this phenomenon is largely due to the fact that China has taken a controlling stake.

Willing to "stretch the waist" for the market

In the face of the Chinese press step by step, there are two reasons why foreign parties make concessions. One is that the strength of their partners has been strengthened, their R&D capabilities have been continuously improved, and the strength of independent R&D has increased. Many Chinese companies have begun to master core technologies. In addition, they are also willing to "five buckets of rice".

From 2000 to 2011, the scale of China's logistics continued to expand, with an average annual growth of 22.4%. In 2011, China's logistics accounted for 15.7% of the service sector and 6.8% of GDP.

“The capacity of China's logistics market reached RMB 6 trillion in 2011 and is still growing at a rate of over 15% per year. China's logistics market is one of the fastest growing markets in the world.” China Logistics and Procurement Joint Vice President Cai Jin said.

Didier Chenneveau, Asia Pacific president of the fourth-largest global logistics company, CEVA, made an optimistic forecast for the future of China’s third-party logistics market: “By 2016, China will become the largest third-party logistics market in the world. The market size will reach 1.1 trillion yuan, with an average compound annual growth rate of 16%."

DidierChenneveau said: "The third-party logistics market in 2012 has decreased compared to 2011, but most of the growth still comes from the Asia-Pacific region. China's logistics development speed is still the fastest in the world."

At present, China's GDP turnover rate is nearly 8 to 10 times that of the United States. Although as China's economic structure shifts to the consumer and service industries, the domestic investment rate and the GDP freight turnover density are likely to be in the process of hitting a high point. In particular, the latter may experience a substantial decline in the future and will Heavy truck sales have an impact, but compared with developed countries, where demand is shrinking, the compound annual growth rate of China's commercial vehicle market has reached 12% in the past five years, accounting for 40% of the global commercial vehicle market, and emerging markets such as China. The potential is enough for these transnational bigwigs to shine their eyes.

According to Daimler trucks' forecast, by 2020 China's medium- and heavy-duty trucks will have an annual capacity of 1.5 million vehicles. Among them, the sales of high-level medium-heavy trucks will account for half of the global truck market, and the prospects are very promising.

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