FAW Jiefang has recently stated during an investment meeting that the company has developed a complete and clear overseas strategy for the sale of its trucks. The truck maker is targeting an increase in overseas sales by about 10% of its total sales by 2025. With that in mind, the brand is pushing hard to make significant growth in the coming years with a bigger emphasis on foreign markets.
For truck makers and even automotive brands, there are generally three kinds of overseas markets. The first is general trade markets such as Asia, Africa, Latin America, while the second is markets with limited thresholds. Examples of these markets are India, Brazil, Indonesia, and other such areas with high levels of localization. The third is the developed market with a high entry threshold, examples of these markets include Europe, the United States, Japan, and South Korea which already have strong local brand presents. While the third kind of market is the largest, it is one of the harder markets to enter as it requires a good amount of capital investments.
FAW Jiefang has predicted that with its lineup of medium-and-heavy duty trucks it will be able to reach 1.2 million sales globally in the next 4 to 5 years. How it plans to do this by doubling down on its carbon strategy and investing in its technological innovation policies. It also plans to heavily invest in the new energy sector which could indicate electric trucks coming from the truck maker shortly along with other kinds of alternative energy vehicles that could be powered by hydrogen.
While FAW doesn’t have concept vehicles yet to show for its next generation of commercial vehicles and trucks, the company is confident that it will be able to reach its goal by the 2025 deadline.