On June 12, the reporters of Guangxi Office of Xinhua News Agency (XNA) visited Yuchai to explore its experience in product export and overseas market development. Tang Zuoxing, general manager of the Marine Engine Department of Yuchai Machinery Co., Ltd. (Yuchai Machinery) and Wang Cheng, vice general manager of the Overseas Department of Yuchai Machinery granted interviews.

Yuchai is most successful among Guangxi's industrial enterprises in implementing the strategy of "going out". So far, Yuchai has established 14 offices, 109 service agents and 169 service outlets abroad, with its sales network covering 39 countries and regions such as Asia, Africa, Central and South America, and Europe. It has been constantly providing the most professional, convenient and satisfactory sales services to overseas customers.

While aiming at the domestic market, Yuchai has kept operating in overseas markets for many years. In recent years, Yuchai's exports volume has continuously grown at a rate of 20 percent, exported over 30,000 units annually and sold products to over 200 countries. Yuchai's export volume in the first half of this year is expected to be up 20 percent year on year.

Be patient in doing business with Russians

Engine is an intermediate product, especially vehicle engines which are mostly exported with vehicles. Wang told the reporters that the proportion of Yuchai's self-exported engines to engines exported with vehicles is roughly 2:8.

Wang (1st R) discussed overseas markets with XNA's reporters

To Wang, apart from the Middle East and South America, Russia is another major overseas market of Yuchai. Russia has abundant cheap gas. Yuchai should seize the opportunity that Russia imports Chinese gas engines to enhance Yuchai's brand influence in Russia.

Yuchai's Russia office in Moscow is in charge of business connection and market development in countries such as Russia, Ukraine and Kazakhstan. Wang said, "We must be patient in doing business with Russians." For example, in agricultural machinery export, they generally contact us first and then send quality system certification officers to inspect Yuchai's capabilities of quality control and production. Technical and business negotiations will be conducted after Yuchai meets their standards. They will purchase engines only after business negotiations and will conduct a lot of tests after returning. "Despite a long process, it is reassuring."

Overseas market service is core

Unlike vehicle engines, marine engines are primarily exported in the mode of agency.

Tang told the reporters that over 90 percent of Yuchai's marine engines are exported independently, but 70 percent of generating units are exported with ships.

Tang Zuoxing (L) granted an interview to XNA's reporter

Most South Asian countries are developing countries with a long coastline and a large market capacity. They are Yuchai's key target regional markets. As Japanese products are highly recognized in this region, it is difficult for Yuchai's marine power products to thrust into the market.

"The core of overseas operations is service. We do not simply do business and settle for single orders. According to Yuchai's experience in overseas operation, service and parts networks come first; an enterprise will develop sooner or later if networks are built up," Tang stressed the importance of service in the enterprise's strategy of "going out".

According to sources, the purpose of the reporters' visit to Yuchai is just exploring Yuchai's successful experience in bringing products abroad and building its brand in overseas markets, providing reference and enlightenment to other enterprises in Guangxi, and providing reference for the government to work out a better strategy of serving enterprises in "going out".

(Yang Mingze)