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Home > Industry Information > SINOTRUK has become the 12th heavy truck brand in Hong Kong to double in three years
Industry Information

SINOTRUK has become the 12th heavy truck brand in Hong Kong to double in three years

2018-08-24


Chinese brand heavy trucks have made ice-breaking trips in the Hong Kong market that has been monopolized by Euro-Japan heavy trucks.

On June 1st, Sinotruk held a handover ceremony in Jinan and delivered the first 100 HOWO-A7 of the first batch of 300 Euro five-card orders to Hong Kong distribution partner Heide Auto. This event was a “milestone event” for China’s heavy trucks. It means that China’s manufacturing of heavy trucks has entered the Hong Kong region for the first time in large quantities.

How does the "heavy ice" of the heavy truck market in Hong Kong "dissolve" by Chinese brands?

With this question, the reporter interviewed senior executives of Heide Auto.

Strong sturdy Hong Kong market

The Hong Kong truck market has always been known for its strict requirements and strict emissions. In this market where the sales volume is not large, the Euro 5 emission standards have been strictly implemented, and almost all of them are monopolized by Euro-Japan heavy trucks. For Chinese brands, entering the Hong Kong market and competing with Euro-Japan heavy trucks means not only sales volume and performance, but also the overall improvement of brand and product competitiveness.

Before 2013, in this international metropolis with a land area of only 1,104 square kilometers, 11 international heavy truck brands have been included (including Mercedes, Mann, Volvo, Duff, Scania, Iveco, Renault, etc.) European brands, as well as four Japanese brands, Hino, Isuzu, UD Nissan, and Mitsubishi. In this big stage of international heavy trucks, the Chinese heavy truck brand can only be regarded as a “running jacket”, and only a few prototypes are in trial operation.

“Hong Kong is a prosperous freeport terminal with well-developed logistics. The annual demand for new tractors is approximately 600-700, and the demand for new vehicles over 10 tons is approximately 2,200-2,300. However, of the 11 heavy truck brands in Hong Kong, There is no one Chinese brand," said He Jian, a director and general manager of Hede Auto, a subsidiary of Hong Kong’s DCH Holdings Group. Because Hong Kong customers have high requirements for vehicle reliability and comfort, and many people have a sense of distrust of Chinese brands, Chinese heavy trucks have failed to break through the area for many years.

Transit arrival "frozen ice" dissolved

The turnaround took place in 2013.

During this year, through the efforts of CNHTC and DCH for several consecutive years, Hong Kong users began to gradually accept heavy truck trucks. “Last year we successfully passed the rigorous approval and certification of the Hong Kong Transport Department to achieve a small number of heavy-duty vehicles. In the past three months, we have received more than 200 orders for heavy-duty tractors and over 100 vehicles. Has been on the card and put into operation, there are a number of customers are eagerly waiting for the delivery of vehicles." He Jianping told reporters, "China National Heavy Duty Truck Sinotruk is the history of the first batch of Hong Kong into the Chinese brand."

He further added that after a period of operation by the user, the performance of Heavy Truck has been initially examined. "The power is very strong, and the overall performance of the vehicle can basically meet the requirements of users."

The reporter learned that compared with foreign heavy trucks, this batch of Euro five heavy trucks from China National Heavy Duty Truck has a strong competitive price. It is 20% cheaper than Japanese cars and 50% cheaper than European cars. "Europe's car quality is very good, but the high cost of purchase, repairs and accessories are also more expensive. You know, the economic downturn in recent years, new car investment in a transport company's competitiveness and cost management is essential." He Jianping said. This precisely creates a rare historical opportunity for Hong Kong's cost-effective CNHTC products to enter Hong Kong.

On the other hand, the introduction of Manchester Manpower technology, but also to its quality has a very good protection - this point, it is also the German German commercial vehicle brand Germany's Hede car to see.

"We have represented MAN for so many years. Heavy-duty trucks and Mann's products can be described as 'two brothers'. There are many similarities in parts and technology, and spare parts are also more convenient for storage," said He Jianping. According to him, Hong Kong's tractors generally run between Guangdong and Hong Kong. “There are also other provinces (such as Shanghai). In Hong Kong, we have a comprehensive after-sales service system, coupled with heavy-duty trucks in mainland China. After-sales service network, which brands in Europe and Japan can compare with us?"

Lessons Learned and Learned for Three Years

There is no doubt that China National Heavy Duty Truck can enter the Hong Kong market, a very important reason is to choose the right partner.

It is understood that Hong Kong DCH is Hong Kong’s prestigious comprehensive trading company and one of Hong Kong’s largest car dealerships. Its operations span Hong Kong, Macau, China, Taiwan, Singapore, Japan and Canada. Hede Auto is a wholly-owned subsidiary of DCH. Since 1987, it has become the exclusive agent of German MAN commercial vehicles in Hong Kong and Macau. Since 2001, it has been the champion of European commercial vehicle brand sales for several consecutive years.

The strong alliance has laid a good foundation for the breakthrough of Hong Kong's heavy truck brand in Hong Kong. According to He Jianping, in the next step, the two parties will introduce the full range of Euro five standard products such as T7, C7, and C5 from the CNHTC-Man.com platform to Hong Kong. “Our distribution service platform matches Sinotruk's domestic network, and I believe that it is less than three. The SINOTRUK brand will surely become one of the leading players in the entire commercial vehicle industry in Hong Kong.” He told reporters that the goal of this year is to bring the share of heavy vehicles in Hong Kong to 10%, and in 2015 it will double to reach 20%. "To reach 30% in five years, we must completely compare the European and Japanese brands. Of course, this road is not necessarily easy to go. It requires the cooperation and support of both parties in the cooperation."

Obviously, in the face of business opportunities, both sides have not been fainted by the initial victory and have more awareness of the risks that may be faced. “Actually, as early as ten years ago, Chinese passenger cars had already entered Hong Kong and served the tourism industry in Hong Kong. But until now, these cars are very difficult to manage. Why? Because their cars are cheap but they are not sold, Doing a good job of after-sales support, said He Jianping. “We, DCH, will not take this old road. Our strategy is to first do a good job of after-sales service. If services and accessories are not prepared, sales cannot continue to expand. Both legs of service and service must go at the same time."

Now that China National Heavy Duty Truck is on the international stage of the Hong Kong heavy truck market, can her "acting skills" win applause and win more performances? This may also depend on the operating performance of the first batch of heavy trucks in Hong Kong.



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