“Algeria is Haig’s largest overseas market in terms of both export volume and export value. The market has grown rapidly in these two years.†According to the relevant person in charge of the African area of ​​Suzhou Jinlong Overseas Sales Company, as of the end of last year, Hager Buses Already, there are 2258 cars in Algeria.
In the past two years, Chinese bus companies have made considerable progress in the African market. The African market is the traditional market for bus companies in China. Due to the weak infrastructure in Africa and the underdeveloped local railway system, the public’s ability to withstand aviation is not as high as in China. With population density, the number of passenger cars in Africa is still very low.
“Mainly local dealers seized opportunities to get some large orders when the political situation was unstable at some time ago. At present, the export volume of Egypt has reached the sum of last year,†said Xie Weiguo, general manager of Dai Jinlong’s overseas sales department. "The overall demand of the South African market has declined this year, but the share of Daikin Dragon is still the largest." Xie Weiguo said. It is reported that Dajinglong’s current export in Africa has increased slightly compared to the same period of last year, and currently Dakin’ Long’s full range of products have been exported to Africa, mainly large passengers and light passengers of 10 to 20 seats.
There are several reasons why Chinese bus companies can gain advantages in the African market. First, the biggest competitors of Chinese passenger cars in Africa are the Japanese and Korean brands. Due to the fact that Korean cars are not very suitable for local models in Africa, the export volume is very low. Although Japanese cars have a relatively large export volume, they are mostly urban bus models such as sea lions, and there are no road or tourist models with exports of more than 10 meters. Secondly, due to the backwardness of African industry, most of the local auto industry is not dependent on imported cars. The lower prices of Chinese products and the aesthetic comfort of vehicles all meet the requirements of the African market for cost performance.
However, opportunities and challenges often coexist, and there are many uncertainties in the African market, which also increases the risks of Chinese companies in Africa. Among them, Africa’s political risk, poor ability to pay and low credit are major uncertainties. At the same time, passenger car demand in Africa is mainly divided into government procurement and sporadic orders. Sporadic orders are small and small, mainly government procurement. Government procurement is an opportunity. All of these factors have, to some extent, limited the development of Chinese bus companies in China.
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