BEIJING – Iveco, a Fiat Industrial Group company, will seek for further business opportunities in China through import, according to media reports.
Iveco will bring four imported trucks to the 2012 Guangzhou International Commercial Vehicle Exhibition to be held on November 22-24, which indicates a comeback of full range of Iveco commercial vehicles in China.
According to Han Likai, marketing manager of Iveco China, the import business will fine fit the company’s joint ventures in China. “Iveco not only produces light buses which are well accepted by Chinese consumers but also heavy-duty trucks,” said Han to China Business News.
Fiat Industrial Group announced on July 2 to close five truck plants in Europe due to declining sales in this region. According to Altavilla Alfredo, newly appointed CEO of Iveco, this closing-plant measurement will help enhance the overall business of Iveco.
Iveco started its vehicle import business in China before 2005 but suspended the business after signing the joint venture frame agreement with Shanghai Automotive Industry (Group) Corp. (SAIC) in 2005. Iveco then established a tripartite joint venture together with SAIC and Hongyan Commercial Vehicles, and Iveco China shifted its focus to the JV business and canceled its import business since then.
“As a European brand, Iveco also wants a share of China’s high-end heavy-duty truck market,” said Han.
“Iveco’s latest move is better late than never,” said Li Ziliang, vice director of Automobile Research Institute, Horizon China. “Iveco has not fully established its brand image in logistics and construction machinery industry due to its conservative China strategy,” added Li.
According to SAIC’s half-year financial report, SAIC-Iveco-Hongyan sold 9,063 units in the first six months, down 60 percent from the 22,700 units in the same period of 2011. Nanjing-Iveco, on the other hand, grew 11.8 percent to 70,000 units through June.