CHONGQING – SAIC-IVECO-Hongyan Commercial Vehicle Co., Ltd. (SIH) officially held a groundbreaking ceremony of its global KD operation center in the Chongqing Liangjiang New Area on November 12.
With the rapid development of vehicle and parts production, SIH sets up its global KD operation center to promote the export of products and expand production capacity of special-purpose vehicles and the localization of parts supporting enterprises, which is also a strategic move to become more competitive.
The overseas market has gradually become an important area to promote the growth of sales, and heavy-duty trucks have developed from low-end to high-end products. Some countries and regions start to increase trade barriers to vehicle imports in order to upgrade their own industries, so the KD/CKD model will gradually expand.
Following this market trend, SIH has already had several overseas KD factories in operation in countries such as Kazakhstan, Nigeria and South Africa. According to its overseas market strategy, SIH will continue to increase KD plant negotiation and construction in Central Asia, North Africa, Southeast Asia and other regions in the next five years and realize the leapfrog development in overseas market. This global KD operation center will assume the important role of realizing its future internationalization strategy.
SIH sold 34,000 heavy-duty trucks in the first 10 months of 2017, a net increase of 18,000 units from its sales volume of 16,000 units in the entire year of 2016. Its cumulative growth margin reached 225.61 percent, much higher than the industry increase margin of 74 percent.