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Hawtai Motor Focuses on Russia with SUV-First Strategy

Data:2014-09-04 15:24:00 Views:

Hawtai Motor made its first appearance at the recently-unveiled Moscow International Motor Show 2014. A shining lineup of Boliger, New Santa Fe and Lusheng E70 attracted numerous attention from local media and consumers. This also marks Hawtai's all-out attack on the Russian market. The "Three-Step Strategy" finally takes shape. The successful landing in the Russian market completes to a technology-market-fund interconnected development network based in Erdos of Inner Mongolia. The network reaches every part of China and the Euro-Asia marginal economic belt through plants in Russia, Mongolia, and Korea -- the global strategy at Hawtai is brought further and deeper.

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Hawtai booth draw much focus at the Moscow International Motor Show 2014

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New Santa Fe SUV of Hawtai at Moscow International Motor Show 2014

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Mid- and high-end Boliger commercial SUV first launched in Russia

 

Product First - "Three-Step Strategy"

To stand out amid the cut-throat competition in local car market, Hawtai prioritizes consumer demand for the Russian market. Also, Hawtai has accumulated rich experience in SUV manufacturing thanks to a joint venture with Hyundai. SUV is then selected as the spearhead to enter the market. The classic Boliger, New Santa Fe, and Terracan models will be launched to occupy SUV segments in Russia.

Hawtai has been specializing in making SUV for more than ten years. Since its entrance into the Russian market in 2012, Hawtai has been doing its homework to quickly know the market, consumer demand, and regional characteristics. Survey shows that more than one third of Russian consumers are planning to buy a new car, and 57% of respondents like SUV the most. Classic self-developed SUV Boliger, New Santa Fe, and Terracan are then brought to Russia. Featuring patented powertrain technologies, these models combine power, fuel economy and environmental impact in perfect balance, along with excellent quality and outstanding cost performance. Also, multi-model strategy satisfies different SUV consumers in Russia.

 

Boliger, a commercial SUV for mid- and high-end consumers, is a perfect solution to socializing, business negotiation, touring and leisure thanks to Hawtai's more than ten years of SUV-making experience. New Santa Fe, the next-generation Class A SUV designed for cool youths in the city, focuses on technology, green, smart, and fashion, offering sensuous visual-audio and driving experience. Terracan, a classic SUV warrior off the road, offers everything you desire for its kind. Outstanding performance makes sure that consumers can run free even in the worst weather and road conditions. It also comes with great balance and control in urban areas.

These three models make Hawtai a star at the show. Learning that Boliger will have its debut in Russia, consumers rush in the booth for car buying and maintenance information.

 

Local Operation - "Three-Step Strategy"

To quickly expand its share in the Russian market, Hawtai does two things: first, optimizing its product mix on a constant basis, and second, looking for local partners to minimize operation cost. Local operation will be the most effective way to enhance Hawtai's Russian strategy.

During the CICA Summit this May, Hawtai and DERWAYS entered into a US$1.1 billion contract co-witnessed by President Xi Jinping and President Putin. DERWAYS will manufacture vehicles for Hawtai sales company in Russia by KD (knocked down). Also, Circassia Manufacturing Base will be built together on the east coast of the Black Sea. The base mainly produces SUV, sedan and pickup, with annual capacity of 45,000 vehicles for Phase I, and 100,000 for Phase II. Boliger, the first SUV rolling out in the base, will be marketed locally first.

This joint venture base marks a key milestone for Hawtai's attack strategy. On one hand, Russian consumers get to know Hawtai cars better, and on the other hand, Hawtai manages to quickly sell cars and grasp the local market share. This lays a crucial foundation for Hawtai's expansion to the wider European market. In one word, Hawtai strategy for the Russian market delivers fruitful results.

 

Technology-Talent-Channel Synergy - "Three-Step Strategy"

Hawtai seeks multiple cooperation with its edges in vehicle manufacturing and core powertrain technologies, apart from the agreement with the famous DERWAYS for building a manufacturing base together. Focus is also placed on developing the automobile industry in second/third-tier Russian cities, with fruitful results in technology developing, talent training and channel building.

In the future, Hawtai will manufacture in Russia its proprietary 4/6AT transmission (unique control strategies and calibration technique) derived from German ZF technologies. Clean diesel engine developed from Italy's VM will also join the list, and it adopts a series of leading technologies like Common Rail Direct Injection (CRDI), Variable-geometry Turbocharger (VGT) and Exhaust Gas Recirculation (EGR). Thanks to a flexible operation system, powerful resource integration, and attraction of local elites, Hawtai has now a high-end local operation team. It dodges common problems facing Chinese car manufacturers in overseas expansion, like excessive cost and parts shortage. Hawtai strengths in vehicle manufacturing & marketing, after-sales service, and financial leasing integration will also be a direct push for Russia's economy and society.

Product quality is not Hawtai's only focus on the Russian market. After-sales service system building is also a priority. A total of 84 Hawtai 4S stores have been established in 71 Russian cities thanks to local distributors. A well-developed sales and service system formed in short time wins Hawtai quick recognition in Russia. Hawtai Santa Fe and Boliger, verified by ECE and GOST, have obtained OTTC certificate, and can be marketed in the Russian market.

This SUV heat initiated by Hawtai motor wins rave comments of both Russian media and consumers. This attributes to Hawtai's global R&D system, which assimilates latest technologies across the globe and offers the best quality of the time to consumers.

The Russian market will grow to be a vital component of Hawtai's going global strategy, and the success there will help Hawtai to seize business opportunities in Africa and South America. It may still be too early to judge the Hawtai model. But the market now sees an extremely confident Hawtai. Such confidence brings hope to the Chinese car industry. We believe that Hawtai will explore a path of success for China's car brands.