"The competition in overseas coach market is as fierce as it in China. An officer responsible for the overseas market told the reporter. With developing the overseas market, domestic bus manufacturers also refine their marketing plan and procedure. Although Yutong has been ranked as No. 1 in domestic bus market, it is still a freshman to overseas market.

 

The fierce competition could be a reason for Yutong to make full consideration before purchasing spare parts and assembly parts.

 

Before 2007, only few Yutong products sold to overseas were equipped with Yuchai engines. However, Yutong decided to use more Yuchai engines when they found that Yuchai has complete service network in Middle East and North Africa even there were no any fixed business cooperation model and overseas market strategy between both parties formed at that time. Yuchai had the same intention to expand its cooperation with Yutong. At the end of 2007, a team led by Yuchai senior leadership visited Yutong. As both of the companies are in the leading place in there specialized fields and both of them have strong will to expand, they started the cooperation to broaden their overseas market.

As told, the cooperation of Yuchai and Yutong was started from an order from Saudi Arab for 100 Yutong Buses. After several years cooperation, Yuchai has now achieved a larger overseas market volume. It also has established its brand effect in key countries and regions such as Saudi Arab, Angola, the Philippines, Algeria, and Macao. Yuchai entered the market mainly by introducing its YC6L310YC6G260YC4E140YC4G180 series products. Yutong currently has an order of 800 buses and the public bidding has already started. Among the biddings, Yuchai YC4E140 engine has grabbed a large share.

We were also told that in 2007 both parties detailed issues of the cooperation on overseas market in order to fulfill the comprehensive cooperation for expanding market share in the future.

 

"After the sales of the products, we must provide close follow up and service. This is the key reason for the customer to re-purchase our products. said a senior executive staff in Yutong overseas department. Yutong and Yuchai reached the agreement on the strategy and development plan. They also signed the cooperation memorandum to clarify both parties responsibilities and obligations. If any problem with our product occurs, Yutong can deal with it by its own according to the detailed terms of cooperation memorandum, then inform relevant department in Yuchai after solving it. According to the senior executive, this processing mode has improved work efficiency for both parties and solved the problems for end-user in the shortest time; it also enhanced users brand trust and loyalty.

"Although we cannot promise the customer that there wont be any quality issues during the use of our products, Yutong is willing to commit the quickest problem-solving service. It greatly improved customers confidence to Yutong products. The executive also told the reporter, the signing of cooperation memorandum has shortened the service time> For example, Yutong can solve most of the problems in 5 working days. If there are no spear parts; Yutong can provide timely solution within 30 working days.

"If the cooperation memorandum had not been signed, it could take about 6 months for both parties to conduct the report and approval procedure. In overseas market, similar situation happened to Benz Bus. It took them more than 6 months and there were blames and wrangles in responsibility-taking issue between Benz Bus and the engine manufacturer. So the customer complained about the service and purchased the bus from another company.

The chief of Yuchai Henan Branch LIU Ming told the reporter that after several years of cooperation with Yutong, Yuchai has taken more than half share of engines equipped to Yutong buses. Their cooperation in domestic bus market has made both parties to achieve great success. They would also broaden the cooperation in overseas market.

 

"During the cooperation, the problems happened were mainly the trivial things in individual cases. But Yuchai and Yutong have never overlooked them and they have set solutions in advance for the possible problems. The signing of overseas strategic cooperation memorandum in 2007 obviously improved the work efficiency during co-expanding in overseas market. Besides, Yutong staff in overseas market would make regular or irregular conversations with Yuchai regarding the performance of Yutong Buses equipped with Yuchai engines in overseas market. said by LIU Ming.

( Bus & Coach Weekly: XIA Jianjun)