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Hong Seng is targeting to achieve another 1,000 units sales volume in 2 years’ time.
Hong Seng Group brought in XCMG Hanvan’s brand into Malaysia in 2016. Today, the brand is well-known in the heavy duty vehicle market segment, and has been widely recognised amongst the industry, especially in the construction and mining sectors.
“I still recall our first meeting with Xuzhou Construction Machinery Group Co., Ltd (XCMG) in 2014. At that time, they did not have any suitable vehicles for the Malaysian market, but I was impressed with their products and their 4 core brand values – Quality, Innovation, Value and Responsibility that shape every aspect of their business and differentiate them from others,” said Dato’ Teoh Hai Hin, Group Managing Director, Hong Seng Group.
It takes a sharp and discerning eye to identify the qualities that set one’s products apart from other similar products. Teoh is obviously gifted with this ability. He managed to convince XCMG to develop a product that suits Malaysian applications and requirements. The launch in 2016 saw the introduction of 3 models of XCMG heavy duty trucks with options of Weichai or Cummins diesel engines, which marked the start of the official partnership.
“XCMG spent about 2 years to develop vehicles for the Malaysian market. This showed the seriousness of XCMG on their products and applications, as well as quality. They made sure that they tested the products before introducing them to us,” stressed Teoh.
Making inroads into the Malaysian market through Hong Seng Group, Luo Dong Hai, Deputy General Manager, XCMG Automobile Business Unit said is a good move. He pointed out that besides being one of the most vibrant countries in ASEAN with a dynamic business environment, Malaysia is the third largest commercial vehicle (CV) market in Asia Pacific after Indonesia and Thailand. That means, he said, it is a market that is full of potential and opportunities, which the company should not miss out on.
Since its establishment in 1943, XCMG has been always at the forefront of the industry. “Over the years, we have grown to become the world’s most comprehensive manufacturer of construction machinery including heavy duty trucks. Technological innovation has become XCMG’s key to unlocking global markets, and we invest about 5 per cent of our annual revenue in Research and Development (R&D). This is why we are able to cater to the different needs and applications, capacity, as well as performance of each market.”
Apart from R&D, XCMG has established a product sales network that covers more than 180 countries and regions, as well as appointing more than 300 overseas’ distributors. According to Luo, XCMG's annual export value has exceeded US$ 1.6 billion.
Teoh added that XCMG is the 6th largest construction machinery company in the world and is ranked 65th in the list of China’s top 500 companies.
“Although we have experienced increased acceptance levels of Chinese automobiles in recent years, the crux is the lack of good products that fit the market needs. The value-for-money Hanvan heavy-duty trucks have filled the vacuum, and quickly became one of the most popular brands in the domestic market,” explained Teoh.
In Jan 2019, the XCMG Hanvan G7 heavy duty truck was introduced as the most high-end, advanced and most sophisticated technology truck from China. Luo said the company is setting benchmarks for safety, quality and fuel efficiency.
To ease the shortage of experienced and skilled drivers, some of the Hanvan prime movers are equipped with Automatic Manual Transmission (AMT).
“Despite the overall declining performance in the local market, the response was overwhelming. The sales of Hanvan trucks continued to grow, and we are currently in short supply,” added Teoh.
XCMG has an annual production capacity of 30,000 trucks per year, Luo said, and they are able to meet the current export needs. “Exquisite workmanship comes from toil and moil, and the Malaysian customers are rest assured that the supply shortage for Malaysian market would be soon taken care of.”
Teoh revealed that the sales of Hanvan heavy-duty trucks in 2019 has increased 30 per cent as compared to 2018. “We took 3 years to reach 1,000 units in terms of sales volume, and we are targeting to achieve another 1,000 units sales volume in 2 years’ time.”
To support the customers, Hong Seng Group currently has 17 3S centres in Malaysia, which are fully owned by the Group. According to Teoh, they are looking to add another 5 3S centres in the near future.
2019 年， 丰成集团将徐工（XCMG）汉风品牌带入大马。今天，该品牌已经是国内重卡领域里的知名品牌，深得业界，特别是建筑和矿业的认可。
“2014年，我与徐州工程机械集团有限公司领导层初次会面。那时他们没有适合马来西亚市场的产品，但我却对他们的产品，还有他们的四大核心价值---品质、创新、价值及责任印象深刻。正是这四大品牌的核心价值 – 品质、创新、价值及责任感塑造了他们各方面的业务，使他们不同于其他公司。”丰成集团集团董事经理拿督张海兴表示。
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