Category: Automakers

Second Chinese Warning


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Video: Second Chinese Warning
Video: [ LobotomyCorporation OST ] - Second Warning 2023, February
Second Chinese Warning
Second Chinese Warning

Let not as modern as Japanese or Korean, but in any case much more attractive than Russian! And, most importantly, inexpensive. Meanwhile, the path of Chinese cars to the Russian market was not so easy.

Yes, over the past year, all companies from China without massive advertising support sold in Russia more than 6 thousand cars and, starting from scratch, immediately captured 1% of the market. But so far, cars from the Celestial Empire have managed to appear in only one of the market segments - pickups and cheap off-road vehicles. In the rest, their presence is not even felt. In a word, the Chinese will have to make a lot of efforts to take their place under the Russian sun. However, they have established themselves as flexible managers.



At the beginning of 2006, sales of Chinese cars in Russia fell by about 50%. Dealers explain the decline in seasonal nature and believe that in spring sales will return to normal levels. But there is another point of view - the recession is long-term. Some experts believe that the quality of the “Chinese” on closer inspection turned out to be lower than expected, and in addition, if we talk about cars, they are not so different in price from Korean ones. At the same time, there is no certainty that a reliable service network will appear, and in general it is not clear how these machines will behave, say, after a year of operation in our conditions …

Apparently, this situation with the sales of Chinese cars, which in the past three to four years have been actively moving to foreign markets, is characteristic not only for Russia. This winter, the PRC government took measures unprecedented in world practice. More than a hundred automakers were ordered to curtail production! The China National Reform and Development Commission (NDRC) has published a list of 144 companies that were ordered to stop producing cars without the right until February 10, by the way, to continue their presence in the automotive industry. They received the right to life only if they could convince the commission of their profitability.

According to Zha Xingguang, chief analyst at the China Automotive Industry Development Consulting Corporation, “closing small plants is necessary for the further successful development of the country's auto industry. Those companies that cannot maintain stable production and satisfy demand, as well as those that do not have money for further research and development, will be closed.” According to the results of last year, the country produces about a million more cars than the domestic market requires. So, if you want to work in conditions of overproduction, please comply with new requirements. There is nothing to dishonor the great China!


I already had to visit the enterprises of the Chinese automobile industry - large and not very. In the spring I visited the relatively small factory of the Tyanma Automobile Group and was able to see how difficult it is for the automaker to survive in China today. The company is located 100 km from Beijing, in Baoding Province, in the center of Dinging District. By Chinese standards, this settlement is so small that it does not even have its own name, but only in common with the area. In the "urban-type village" lives a little more … 600 thousand people!

Prior to the February “purge”, Baoding Province was one of the most automobile: until recently 36 (!) Car assembly plants worked here. Now there are only ten. Of these, the names of two are best known in Russia: Great Wall and Admiral. "Tyanma" is the third largest producer. The plant was founded in 1980 as mailbox No. 9506 and manufactured products for the Air Force. In 1994, it was transferred to local authorities, and in 2002 it became a completely private enterprise; 98% of the shares belong to the general director, and the rest to managers.

In 2002, two models were produced here, now there are already six (pickups, all-terrain vehicles, vans). Dump trucks and special equipment are assembled at a separate site. Every year they expand the range and improve quality (this is a prerequisite, otherwise they will close it, they won’t see that the plant is private!). This year another model of an all-terrain vehicle should appear, for the development of which more than $ 15 million was paid to the South Korean company. In addition, $ 5.5 million cost the construction of a new workshop and another million had to be laid out for a modern quality control system. Now the new SUV is undergoing recent tests, including an independent crash test (!). Estimates, according to the Chinese, were quite high.

However, this is a perspective. The lion's share of production now falls on the Tyanma (Flying Horse) pickup truck, which is sold in a number of countries, including Russia. This year we have sold about 300 pickups with a 2.4 liter gasoline engine (Mitsubishi license). Now the model with a 2.8 liter diesel engine (Isuzu license) is undergoing Russian certification. The plans of the Chinese company are to thoroughly gain a foothold in the Russian market.

“Together with our Russian partner, Beijing Jeep, we are preparing to enter your market,” says Shukai Zhou, general director and main shareholder of Tyanma Automobile Group. - With each car we send spare parts for $ 100 to Russia for free. And in Novosibirsk we created a central spare parts warehouse. Two of our engineers are constantly in your country, they train service station specialists. We have already translated into Russian and published a full set of literature on the maintenance and repair of our cars. The task is to create a reliable service network for Tyanma cars in Russia.

The forty-year-old director proudly showed his factory, where 1, 200 people work, new workshops for welding, painting, assembly, and, among other things, quoted an old Chinese proverb. In a free translation into Russian, it sounds something like this: "The best commander is the one whose troops have not yet gone on a campaign, and food and ammunition have already been brought to the scene of the battle." Well, the thought is right …


The volume of car production in the Middle Kingdom is growing rapidly. In 2001, 2.7 million cars were sold here, and now the National Association of Automobile Manufacturers (CAIA) reported that China “overtook” Japan in car sales and became the second largest automobile market in the world, second only to the United States. In 2005, more than 5.9 million cars were sold here, and in Japan - 5.8 million. According to the same data, the country's share in the world market was 8.7%. According to CAIA forecasts, about 6.6 million cars will be sold in China this year. Moreover, over the year, the volume of exports from China increased by 2.3 times! They do not hide here that the primary goal is to gain a foothold in the nearest Russian market.

- Since the moment Chinese cars entered our market in 2004, there has been a lot of talk about their quality … but it turned out that in general it is quite acceptable! - says Gennady Sidnivets, CEO of Beijing Jeep (a distributor of several Chinese brands in Russia). - During this time, apparently, about 10 thousand cars were sold, but it is not known about any serious damage. The problem is different: not all Chinese manufacturers were ready to support warranty and after-sales service on the territory of the Russian Federation. The task was limited to selling as many cars as possible.

By the end of 2005, all dealers of Chinese companies in Russia faced one problem - they need to build a service network, but there is no support from manufacturers. Relations with some of them had to be interrupted. Those of the Chinese who are going to seriously work in our market are building their activities in a new way. Let's pay tribute to the neighbors: they are increasingly engaged in updating the lineup, improving its quality, safety, etc. The Chinese are very quick to respond to customer requirements and immediately make changes that meet the operating conditions in a particular country. They have already come to understand that only low prices do not take foreign markets. And one can not help but reckon with the fact that they seriously intend to get their share in our car market. They can lead in the pick-up sector (from which, in fact, they started) and commercial vehicles. And in the future, through the creation of joint assembly enterprises to win their share in other sectors. An intention has already been announced to organize five such plants: in Altai, Novosibirsk, Cherkessk, Moscow and Kaliningrad.

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