Overseas operations key to global strategy

After years of overseas development, China National Heavy Duty Truck Group, also known as Sinotruk, has gained much experience of expanding in international markets with its strong teams abroad.

“For Sinotruk, the key to overseas market expansion is proximity to local markets,” said Zhang Yuzong, general manager of Sinotruk International.

Setting up overseas offices is part of the company’s efforts to learn more about local customers’ demands and to provide them with considerate services, Zhang said.

Over the past years, the group has set up 74 overseas offices around the world, where nearly 400 Chinese staff members are stationed. One example is its overseas office in the Philippines, where nine staff members work.

The Philippines government announced in 2018 an upgrade of emissions standards from Euro II to Euro IV, which has created both opportunities and challenges for the automobile industry.

In response, the Sinotruk team has carried out research into the country’s new policies and put in place a series of measures, such as ensuring all vehicles adhere to Euro IV standards.

Li Zhonglin, an engineer at Sinotruk’s Philippines office, said he remembers the time when the team first reacted to the policy.

Customers were not familiar with the new emissions standards and the company had to explain to them, Li said.

Sinotruk has realized rapid growth in its annual exports to the Philippines. Its products account for more than 60 percent of the local market, making the Philippines its biggest export destination in Southeast Asia, according to the company.

The overseas sales teams help the group to develop regional markets and play an active role in accelerating sustained development, Zhang said.

Earlier this year, the company awarded its 16 sales teams at home and abroad up to a maximum of 1.2 million yuan ($170,890) each for their contribution to Sinotruk’s global growth.