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Business / Auto China

Battlefield where the tanks are cars

By Hu Haiyan and Tan Yingzi (China Daily) Updated: 2015-03-30 07:35

"Generally we will first enter the less developed overseas markets, where the costs of operating a brand are lower than in the United States or in the European Union. After gaining brand recognition we will venture into developed markets such as the US and the EU."

Zhu cited Russia as an example of the complexities of going overseas.

"Emerging markets like Russia are full of opportunities for Chinese carmakers because people there are not addicted to Western brands. That's why we decided to set up a factory in Russia. But because of the fluctuations in oil prices recently, investment returns from Russia are not that promising, and we have had to delay plans to expand there."

Changan now has three factories overseas and is building three others in Chile, Colombia and Vietnam.

As part of its drive to gain a foothold in overseas markets, the company is preparing for big things such as introducing its green-energy car model. It plans to unveil an energy-efficient car soon, Zhu said, without giving details.

Zhu studied engineering at the Beijing Institute of Technology, and graduated in 1986. He has worked for Changan since then.

Looking back over his 29 years in the auto industry, he said his most fulfilling moment was seeing Changan produce its own branded cars in 2009.

"When Changan used to make cars for foreign companies or for joint ventures, such as Changan Ford, there was little sense of fulfillment. It's vital for a company to own its own brand and core technologies."

When he went abroad for the first time, to visit Japan in 1987, he said, there was a huge gap between Changan and its foreign competitors. Suzuki then made about 800,000 cars a year, while Changan made just 200.

Last year the group made 2.54 million cars carrying its own brands, accounting for more than half of its car sales.

Zhu said Chongqing is an ideal base, given that the city has a complete industrial chain for making motor vehicles and a big pool of skilled labor.

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