Yuchai Enters Qatar Market with 2022 FIFA World Cup Coming in Qatar

2018 FIFA World Cup Russia ended. Fans and bandwagon fans will see the next football carnival four years later.

It is said that in the 2022 FIFA World Cup in Qatar, more football teams will compete in the game, but it is hard to say whether our national football team can appear in the field.

However, in another field, China has got the entrance ticket to Qatar.

A lot of products made in China have been seen in and out of the field at several sessions of the World Cup. It is worth mentioning that Yuchai Group has entered the Qatar market for many years on behalf of “Chinese manufacturing.”

Qatar: Successful layout along the west line

France won the 2018 FIFA World Cup mainly because of its coach Didier Deschamps’ arrangement of players and tactics.

The enterprise layout is also important.

Entry to Qatar market is a part of Yuchai’s global layout.

Through the market construction in recent years, the overseas marketing service network of Yuchai has been initially established with four regional market fronts respectively in the east, south, west and north. “The east line” spreads from the start of the Maritime Silk Road to ASEAN countries including Vietnam, the Philippines, Thailand and Indonesia. “The south line” includes South Asian countries such as Pakistan, India and Sri Lanka. “The west line” extends to North African countries such as Egypt and Ethiopia on the basis of Saudi Arabia and Kuwait markets. “The north line” covers countries and regions in Northern Europe and Central Asia.

Along Yuchai’s “west line”, many countries are burning hot with less rainfall due to the tropical desert climate, but coastal cities have high air humidity. In such environment, products endure extreme test. Qatar is a typical example.

Qatar is one of the richest countries and regions in the world due to its abundant petroleum resources. It covers a territorial area of only 11,500 km2, even smaller than Tianjin (11,900 km2). Qatar has only a few industries and a small market, but it imposes high requirements on products and services.

For buses exported from China to Qatar, many buses are equipped with Yuchai’s engine. The annual sales volume is several hundred.

In Saudi Arabia which is the neighboring country of Qatar and also on Yuchai’s west line, lots of Yuchai’s products have been found in the school bus and coach markets. Yuchai has seen a significant year-on-year increase in terms of the 12m coaches complete with 6L and 6MK

Yuchai’s successful layout on the “west line” relies on its reliable quality.

According to relevant responsible person, customers in Saudi Arabia were more likely to choose internationally famous brands in the very beginning. They didn’t trust Chinese brands and products and they were not familiar with Yuchai either. After they applied a few products of Yuchai, they really recognized the quality and reliability of Yuchai’s engines. Since then, they have purchased buses with Yuchai’s engine in bulk. “Yuchai can be on a par with international brands in stable performance, and the higher cost performance of Yuchai’s products can create more values for customers, so Yuchai wins lots of customers.”

Exceeding 400,000 sets: Winning the “world cup”

With the average age of players being 26, France football team is superb and aggressive. They were full of passion and made no secret of their longing for championship.

The same ambition drives Yuchai Group to win its own “world cup”.

In 1960s, Yuchai’s products found its way to overseas markets, a prelude to Yuchai’s overseas expansion. After 1990s, Yuchai’s overseas offices fully participated in international market competition, revealing that Yuchai saw a rapid development in overseas markets. During the 12th Five-year Plan Period, Yuchai exported more than 167,000 engines, an increase of 53.8% compared with the 11th Five-year Plan Period. Since the beginning of the 13th Five-year Plan, Yuchai has exported more than 116,000 engines. The scale has been further enlarged.

By June 2018, overseas holding volume of Yuchai engine had exceeded 400,000, and relevant products had been sold to more than 180 countries and regions on five continents, covering all developing countries. Recently in the ASEAN market, Yuchai’s engines have been sold well. In particular, the sales volumes in Vietnam, the Philippines and other countries have increased year after year. Yuchai has also achieved a breakthrough in developed countries in Europe and America and taken a firm step on the internationalization path.

Yuchai has built the product structure covering Euro II to Euro VI emission standards and provided customized, advanced and suitable products for local markets. It is the secret of Yuchai to develop the internationally first-class product competitiveness and stand out at overseas markets.

As climatic environment, landform features and economic social form vary from country to country, Yuchai and the automobile factory have made field surveys and developed supporting adaptable products for heat management of finished automobile and engine based on local road conditions and application environment. The “locally customized” products are more stable and reliable during operation.

Global service: Overseas upgrade and expansion

The France football team which has a combined value of 1.08 billion euros defended and fought back in the 2018 FIFA World Cup. After lead, they even adopted a defensive pose like an iron bucket. Some fans were not satisfied. Didier Deschamps didn’t care. He said, “We must choose the most suitable tactics.”

The solid rear defence is the success guarantee of the team. The complete service network is the solid foundation of Yuchai to develop in the global market.

Up to now, Yuchai has set up 17 overseas offices and 169 overseas service stations at overseas markets, which have effectively guaranteed the stable development of Yuchai’s overseas markets.

Last year, Yuchai established the first spare part service station in Saudi Arabia. At the end of the year, it received a big order.

Such functional stations are a part of Yuchai’s upgrading actions to building overseas services and spare part network. It has guaranteed product application by customers, enhanced customers’ consumption experience and also developed and improved Yuchai’s brand value and user value.

Obviously, overseas services are different from domestic ones in terms of operation and management. As different countries have different culture, customs, habits, language and ways of thinking, the standard service management mode at home cannot be copied and then applied at abroad. Adjustment is required based on local conditions. Besides, services should be provided according to local management mode so that the overseas service system can be operated effectively.

By establishing the brand center integrating service training center, spare part warehouse and image store, Yuchai has improved its overseas service ability and services.

In the future, Yuchai will continue keeping up with the Belt and Road Initiatives and pushing forward with its international strategy. Yuchai will upgrade comprehensively from the aspects of product technology, institutional functions, management system and capability upgrading, so as to build industry-leading product competitiveness and management capabilities, and strive to achieve its international operation.

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China Special Vehicle Adivsor