Dubai: Chinese automakers are looking to expand into the UAE market in a continuing push from within the country to boost exports.
One company, Chongqing Asia China Automobiles, told Gulf News it has set up at Dubai International Motor Show in search of a distribution agent in the UAE for its commercial trucks.
Robin Wang, sales manager, said there had been a lot of interest during the show.
"We're looking to expand the market here. We have a plan to sell about 500 in the next year, but right now we're trying to find an agent. Many people are asking, but we will choose. It's a big market," said Wang.
The company, which has been operating for 50 years and exporting for around 30 years, only recently looked to enter the UAE on the back of positive sales in the region.
Steady growth
Dongfeng Bus, a Chinese truck manufacturer based in China's Hubei province, is also using the motor show to test the waters before entering the UAE market and is not having much luck.
"We're currently selling into Russia and Egypt. So far we haven't seen much interest here and not happy with the response so far," said Lin Yunbo, vice-general manager.
King Long Motors, which manufactures commercial buses, has been in the market since 2006 and is happy with its conservative expansion strategy.
"In the initial stages people were not aware of the quality of what the Chinese people can produce. Now we've come to a stage where we have a good demand for the buses and sales have seen steady growth," said C.R. Rangasayi, manager at Western Autos, the exclusive distributor for King Long.
"In two years we have been able to penetrate the market well," he added.
King Long focuses on the luxury tourism sector and offers two models in the UAE, their 35- and their 51-seat buses.
"We've already achieved minimum targets which we purposely made conservative. Before it was 30 units a year; now we're looking to expand to 50," said Rangasayi.
Foton, the Chinese manufacturer with its headquarters in Beijing and is also distributed by Western Auto, has been in the region for almost five years and its sales are growing on the back of its competitive pricing.
"Our pickup trucks are the most popular. The Dubai market is looking for very economically priced vehicles which can be used for two years and sold off. Manufacturers such as Toyota are charging much higher than this while Chinese vehicles are much cheaper.
"In two years you get your value for money," said Gaurav Shetty, executive for marketing at Foton with Western Auto.
Great Wall Motor Company Limited, China's largest SUV producer, has been present in the UAE for 11 years and is the oldest Chinese car manufacturer in the country. Its speciality has been pickup trucks and commercial vehicles, but it has more recently been trying to introduce its passenger cars to the UAE market.
Trust
"It's interesting for customers to come and see the new model, the SUV, hatchback.
"Because we've been here for over a decade, the local customers already know the Great Wall brand. Through the pickup they will trust the passenger car and get to know the new products. We are starting little by little," said Parker Shi, general manager of the International CBU business department at Great Wall.
According to Shi, sales have been steadily growing with the expansive distribution network.
"Before, we only had 500 to 600 units of the pickup model.
"Since we've introduced a new model, sales are getting better. We've seen an increase of 15 per cent this year."
Their Middle East export market makes up around 12 to 13 per cent, but Russia remains their biggest export market, making up 20 per cent.
