China: Chinese automakers take global push beyond vehicle exports.

Storyline Chinese automakers take global push beyond vehicle exports At this year's IAA Transportation, a bi-annual commercial-vehicle, transport and logistics trade fair held in Hanover, Germany, Chinese companies accounted for more than 20 percent of the total. Firms like Foton Motor, the commercial-vehicle subsidiary of Beijing Automotive Group Co., Ltd., or BAIC Group. Although BAIC has been operating abroad for decades, they're part of a larger push by Chinese firms to boost their trade, investment and technological cooperation across the global auto industry. At its Beijing headquarters, Foton representatives said they're focused on establishing manufacturing bases and local sales and service networks in markets around the world. Lu Zhenghua, General manager, Foton Motor: "The logic of competition in global commercial-vehicle markets has changed fundamentally. Short-term product sales cannot support long-term development. The core of our approach is to move from selling products to building businesses in local markets. We work with local partners to develop industrial ecosystems, establish capabilities locally and build a lasting competitive edge." The move towards local operations is also gaining traction among Chinese new-energy vehicle makers, whose technology, products and supply-chain strengths have supported overseas expansions. Chinese vehicles are now sold in more than 200 countries and regions, while Chinese companies have invested in vehicle and parts manufacturing in more than 80 countries and regions. Gong Jinfeng, General manager, China Automotive Technology and Research Center: "Under the new global competitive landscape, Chinese automakers are moving beyond exporting products to pursue a more integrated form of international expansion, combining technology, brands, services and industrial ecosystems. By providing technical services across the value chain, we can help them meet overseas regulatory requirements, improve quality and build stronger brands in global markets." In early September, nine government agencies issued a five-year plan aiming to have NEV sales account for 70 percent of the country's domestic new passenger vehicle sales by the year 2030. [Restrictions: No access Chinese mainland]