> China FAW: Innovating overseas business development model

China FAW: Innovating overseas business development model Passenger cars - the final assembly workshop of FAW Car Factory No. 2 in support of the "One Belt, One Road" initiative...

Passenger Cars - Final Assembly Workshop of FAW Car Factory No. 2

Driven by the support of the "One Belt, One Road" initiative, the overseas business of China FAW Group, the eldest son of the new China's automobile industry, has spread across Southeast Asia, Africa, the Middle East, Latin America and other regions. The company is currently seeking to transform from "product export" to "capacity output".

China’s “One Belt, One Road” initiative has provided new opportunities and directions for Chinese car companies to build overseas factories. At the end of April this year, China FAW's first model, the Besturn X80, which was assembled and produced locally in Russia, was successfully launched, becoming the latest achievement of Chinese car companies' overseas localization operations.

The latest data released by China FAW shows that since the "Belt and Road" initiative was proposed in 2013, this car company's overseas business has covered 48 countries in Southeast Asia, Africa, the Middle East, Latin America and other regions, with a cumulative export of more than 260,000 vehicles, and the export value of complete vehicles and parts has exceeded 5 billion yuan.

Localized operations are an important experience for China FAW to successfully expand overseas markets. China FAW said that the company is seeking to transform from "product output" to "capacity output".

The latest data shows that in 2016, 54% of China FAW's exports were completed in the form of KD assembly exports, of which KD exports of medium and heavy trucks accounted for as high as 60%. Currently, China FAW has established overseas KD assembly plants in many countries including Iran, Pakistan, South Africa, Vietnam, Malaysia, North Korea, Philippines, Kazakhstan, Kenya, Nigeria, and Mexico.

At the 11th China North Asia Expo International Production Capacity Cooperation Branch held on September 2, the signing ceremony of the promoter framework agreement of FAW Overseas Investment Co., Ltd. was held grandly.

> FAW Overseas Investment Co., Ltd. was jointly established by China FAW, Jilin Provincial Equity Fund Investment Co., Ltd., China Reform Investment Fund Management Co., Ltd., Changchun Branch of China CITIC Bank Co., Ltd., Liaoning Huihua Xinye Trading Group Co., Ltd., and Jilin Huayang Group Co., Ltd. By gathering advantageous resources from all parties, it aims to support Chinese enterprises to carry out strategic long-term investments along the "Belt and Road". After the establishment of the investment company, China FAW will further explore the after-market areas such as automobile service guarantee and financial loans along the "One Belt and One Road", and continue to build and consolidate China FAW's full industry chain advantages in the international market.

On this basis, China FAW will also focus on the six core tasks of brand building, product creation, market penetration, attractive services, building a strong system, and win-win cooperation, strive to improve the market competitiveness of export products and system support, and continue to promote the rapid development, transformation and upgrading of China FAW's overseas business.