Hawtai expanding overseas operations in order to increase sales

Gasgoo.com (Shanghai July 10) - Following the footsteps of fellow domestic manufacturers Geely, Chery, Great Wall and Changan, Beijing-based manufacturer Hawtai Motor has announced its intent to increase its presence in foreign markets. According to its recently released mid- to long-term strategy plan, Hawtai aims for 30 percent of its sales in 2015 to come from overseas, the National Business Daily reported today. The manufacturer aims to further increase that proportion to 50 percent by 2020.

Many believe that the reason Hawtai is looking to markets overseas is to help deal with the state of the domestic market. According to statistics, a total of 580,000 own brand passenger automobiles were sold in May. That number, which makes up just 36.5 percent of all passenger automobiles sold during the month, is 2.92 percent less than the amount sold in May of last year. May also marks the ninth consecutive month that own brand manufacturers' share in the domestic passenger automobile market fell.

Hawtai's lineup consists of sedan and SUV models. However it hasn't been able to find enough demand to satisfy its total potential annual production capacity of one million vehicles in China alone.

Hawtai has established sales channels in Africa, the Middle East, Eastern Europe, Central and South America and other regions. The manufacturer is active in over 30 different countries and regions. However, Hawtai has made it clear that relying exclusively on exports is not enough for the manufacture to increase its sales; instead, it aims to expand its overseas manufacturing operations.

At the Fourth Conference on Interaction and Confidence-Building Measures in Asia held in Shanghai in May, Hawtai announced that it will partner with the Russian Derways Automobile Company to establish a production site in that country. Hawtai Motor Group Chairman Zhang Hongliang commented on the partnership's prospects: "From what we know, Russian consumers prefer SUVs [and] Chinese SUV products are experiencing rapid growth in Russia."

Hawtai aims to manufacture SUVs, sedans and pickup trucks at its future Russian production site. The site is designed to manufacture 450,000 vehicles during its first phase; that capacity will expand to 100,000 vehicles after its second phase expansion is completed. The site will manufacture vehicles for sale in several CIS countries, including Russia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan.

Hawtai produces 50,000 semi-knockdown kits for assembly at its factory in Angola. The factory is the only one of its kind in the country. Hawtai is also in the process of producing a 300,000 vehicle industrial park in Myanmar. The manufacturer is also investing in factories in Mongolia, Ethiopia and other countries.