2018-04-03Leaping development for JAC in Overseas Markets---Implementation of the Belt and Road Initiative

The report of the 19th National People’s Congress pointed out that the Belt and Road Initiative is an important step for China to implement the "going global" strategy. To utilize the Belt and Road Initiative, Chinese independent auto brand manufacturers have also performed brilliantly on the arena, achieving leap-forward development from “going out” to “going inside”. According to data from the China Automobile Association, China's auto exports achieved the first increase in 2017 after a fourth consecutive drops, with the export volume of 891,000 vehicles, a year-on-year increase of 25.8%, indicating a relatively rapid growth. The export market is mainly concentrated in Central and Western Asia, Central and South America, and has experienced rapid growth in Central Africa, West Africa, Southern Africa and Oceania.

As a new power representative of the independent brands, JAC is also continuously deepening the development in international markets of Eastern Europe, Africa, Latin America and the Middle East, and accelerating the layout of countries along the Belt and Road route. Throughout 2017, JAC achieved an export of 65,000 vehicles, ranking fourth in the industry and maintaining the leading edge in some export segments. Among them, the sales performance of countries along the Belt and Road route is the highlight of 2017. Along the Belt and Road route, JAC has exported 38,000 vehicles to more than 30 countries, accounting for about 60% of the total exports of JAC. Through batch deliveries and frequent appearances on international occasions, JAC has enriched the value of “Made in China” and established the new “China” name card that represents the Chinese auto brands.

JAC police car delivery ceremony in Kazakhstan, 2017

In the Belt and Road Initiative, Kazakhstan and Iran are very important countries. Kazakhstan is a major country in Central Asia, and the first stop of the Belt and Road Initiative development to the west. Iran, with a crossroads strategic location, is the strategic center of the Belt and Road Initiative. Therefore, JAC’s development in these two markets fully indicates the determination and foreseeability of JAC's overseas market layout. Furthermore, the outstanding achievements of JAC in Iran and Kazakhstan in 2017 made JAC become a bright brand in international markets.

As the only automotive industry project in Kazakhstan's 32 industry revitalization projects, JAC Kazakhstan Automobile Project has received high attention from leaders of both China and Kazakhstan. The Prime Minister of Kazakhstan, Mr. Sagintayev, inspected the project in person. Also for this project, Chinese Vice-Premier Zhang Gaoli once expressed his appreciation of JAC’s active pursuit of the Belt and Road Initiative strategic opportunities, innovation and opening up of cooperation models, and performance on acceleration of “going global”. In addition, Kazakhstan national television station also highly praised the project as “a model of China-Kazakhstan capacity cooperation”. The factory has modern production equipment and exquisite production technology and is the only automobile factory in Kazakhstan that owns welding lines and painting lines. It has the reputation of "National Automobile Manufacturing Center of Kazakhstan". In 2017, JAC exported nearly 1,000 units to Kazakhstan in total and successfully realized the re-export to Tajikistan, which not only strengthened the China-Kazakhstan relations, but also further enhanced JAC's brand awareness in Central Asia.

President of Kazakhstan, Mr. Nazarbayev, inspected the project

Staff from JAC International said that "JAC's plant in Kazakhstan has already brought into production. With Kazakhstan as the starting point, some JAC products are directly exported from Kazakhstan to neighboring countries. The radiation function has initially appeared." So far, JAC has further developed the brand influence and popularity in the Eurasian Economic Union and the CIS region.

Iran is located between the Eurasian continents and is an important hub connecting the East and the West. The Belt and Road Initiative put forward by China is becoming the new driving force for promoting economic and trade cooperation between China and Iran and benefiting local people. In 2017, JAC exported 29,000 unit vehicles to Iran, covering light trucks, sedans, and SUVs. The exporting mode was gradually developed from complete KD assembly to partial components localization. The localization degree of popular models such as S5 has exceeded 30%, initially realized the transition from "product output" to "technology and management output."

S3 coming into the market in Iran

“The annual sales volume of JAC passenger cars was only 2,000 vehicles at the very beginning, but till now, the cumulative sales has exceeded 100,000 units, which has already ranked top in Chinese independent brands” said by staff from JAC International. JAC continued to strengthen the quality control of the assembly plant in the production process to ensure the product quality, and enhanced the localization according to policy requirements. JAC earned the recognition of local customers with quality-mind and customer value oriented.

In addition to continuous breakthroughs in sales performance, JAC has also made active appearances at overseas auto shows and some important occasions. With the outstanding performance at international auto shows such as the Russian International Commercial Vehicles Exhibition, the 24th Cairo International Auto Show and the Iran Shiraz Auto Show, JAC not only reached new height on local market sales, but also promoted the brand awareness of JAC Motors globally.

In 2017, JAC subsidiary in Russia participated in COMTRANS, the most influential commercial vehicle show in Russia, with N-series high-end light trucks and mini trucks. JAC’s passenger flow volume of the first day exceeded 300, received many reports from Russian mainstream media. After that, JAC Russia subsidiary has carries out various activities like tour exhibitions and test drives, which further promoted the brand awareness. JAC's sales volume in Russian market has also been greatly improved. In addition, at the Venezuela carnival in 2017, the National Guard vehicles converted from JAC vehicle became a “China” name card representing the higher standard and better service of “Made in China”. Since 2014, the Venezuelan National Guard has purchased thousands of various vehicles from JAC for personnel and material transportation. The multiple procurements of Venezuela government have well demonstrated the excellent product quality of JAC.

JAC in 2017 Russian International Commercial Vehicles Exhibition

JAC’s outstanding achievements in countries along the Belt and Road route cannot be separated from its rich experience in export market and the differentiated market strategies. The early marketing experience of going global has enabled JAC to accumulate profound strength and experience. After the Belt and Road Initiative been put forward, JAC has seized the opportunities. At present, JAC exports to nearly 30 countries along the Belt and Road route, including Iran, Egypt in the Middle East, Kazakhstan in Central Asia, Bangladesh and Sri Lanka in Southwest Asia, Vietnam, Philippines and Laos in Southeast Asia and Eastern Europe countries. At the same time, JAC has also established joint ventures or assembly plants in countries along the Belt and Road route, including a Vietnam joint venture and nine KD factories in Iran, Kazakhstan and some other countries. The assembly products cover JAC light trucks and passenger cars.

JAC passenger car showroom in Egypt

Moreover, JAC has adopted different marketing strategies to create differentiated product advantages according to different characteristics of the local markets, and make products combination based on the market environments, for example, the medium and high-end products meet the European and North American markets requirements, with more emphasis on safety, energy saving, environmental protection, electronic and intelligent; while economic products satisfy the Asian and African markets, with improvements on adaptability and durability for tough working conditions, as well as the convenience and economy of maintenance.

The continuous promotion of the Belt and Road Initiative has provided new momentum for the economic development of regions along the route. Under the Belt and Road Initiative, JAC has continuously kept making improvements, created international level products and services, and promoted the "existence" of JAC brand in the international markets. In the future, JAC will continue to explore the international markets and make contribution to the rise of Chinese brands in the international arena.

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