CNN price of a small car in Ethiopia $ 33,751 April 12, 2016
Yin Minshan expects sales of Lifan in Africa will continue to grow 10 percent annually through 2015 provided to China Daily.
After being on the road for over 20 years, car and motorcycle manufacturer goes up.
Yin Minshan, Africa offers one of the most fertile land for private Chinese companies global development.
In President unpretentious Chongqing Lifan Group, it is difficult to see someone associated with aggressive expansion in a highly competitive global market, but on his plans for the group's expansion in Africa, its ambitions are big indeed act judicial.
I want to be the best Lifan automobile company and motorcycle in the world, Yin said Lifan, one of the largest domestic automobile and motorcycle manufacturers.
To achieve this we will first enter less developed foreign markets such as Africa brand operating costs are lower compared to the US and the EU, and that gives us a strong foothold to transform into a global giant.
Yin, 75, said that after obtaining the recognition of the brand, the group embark on developed markets such as the US and the EU.
With nine employees, Yin has established Lifan Group in Chongqing, southwest China, with a registered capital of 200,000 yuan to 36,000 times in 1992 Now, Lifan is one of the largest motorcycle manufacturers and cars in China, with about 20 billion yuan 3 3 billion revenue; February 5 billion last year listed unit of the group, Lifan Industry Group Co Ltd, sales 8 7 billion yuan last year, little different from the previous year.
The group of African companies began when he started selling motorcycles in Nigeria in 1998. Last year, its turnover was 70 million approximately 80,000 motorcycles sold in the sales area for cars sold in Africa was 30 million, and about 1,000 have been sold on the continent's exports to Africa have a value of 100 million last year, about a sixth of exports of the group, said Yin.
This kind of figures would meet a lot of business people, but Yin prepares for the great things he expects sales Lifan in Africa will continue to grow 10 percent annually through 2015.
Although the increase is not high, the profit is greater than in most of our overseas markets such as Southeast Asia.
Lifan works with more than 140 dealers in more than 160 countries and regions, including Africa, Latin America and Southeast Asia The group has set up five factories in Thailand, Turkey, Ethiopia, Uruguay and Vietnam, and plans to open one in Russia this year.
The car factory in Ethiopia the group has an annual capacity of 2,000 cars with 150 employees, and the group plans to expand capacity there by building another plant by the end of November, said Yin.
It's expected that the production capacity in our factory Ethiopian will be about 10,000 cars a year then, and our revenues in Africa will certainly increase with the expansion.
Chinese companies enjoy many advantages in Africa because the automotive and motorcycle there are similar to those of China it was 20 years ago, he said.
Compared to their Western counterparts, African consumers are not loyal to specific brands and for most local consumers, Chinese cars are labeled as those high-end, similar to the situation when Volkswagen Santanas were imported in China there 20 years ago.
Africa gives us time to mature, and our own technologies and brands will grow doubt that the market develops.
Jia Xinguang, an auto analyst in Beijing, said it is difficult for Chinese automakers to enter developed countries because the automobile industry there tend to develop and mature and emerging markets such as Africa offer many opportunities for Chinese carmakers, because customers there are not loyal to Western brands.
Most well known foreign cars sold in Africa were the second hand, for Europe and the United States have not paid much attention to the market, which offers an excellent platform for Lifan to develop its automotive industry there.
Lifan has surpassed Toyota as the largest in the sales of new cars in Addis Ababa, capital of Ethiopia, and you can see all our cars in this city, said Yin, speaking Mandarin with a strong Sichuan accent.
The healthy development of Sino-African relations offer great opportunities for Chinese companies to develop businesses in the region, he said.
Although Lifan started its business with motorcycles, he invests his best efforts in the development of the automotive industry, he said, because he realized that auto manufacturing is more cost effective, with car typically costs more than 15 times that of a motorcycle.
We want to turn us into a major automaker, along the lines of Japan Honda and BMW Germany.
The group has obtained approval of the product of the National Development and Reform in 2005 to make cars in January 2006 and its first sedan, the Lifan 520 last year toward the car Lifan represented about 53 percent of sales the company expects that by 2020, revenue of cars will be nearly 80 percent of the total, Yin said.
Despite his confidence in Lifan African expansion, he said challenges.
Lifan development in Africa is limited by underdeveloped industry vehicle components and some African countries are also suffering from political unrest, which poses problems for employee safety.
Yet the biggest challenge of Lifan in its expansion in Africa will enhance research and development, said Yin.
To maintain sustainable development and become the true market leader in this region, it is crucial for the group to develop its own core technologies, said Yin.
Lifan has more than 6,482 patents and says he spends about 5 percent of its turnover in R & D The company has also set up R & D centers in Chongqing and Brazil, making it the first private car company to have a national center R & D in Brazil.
We also examine the possibility of having another center of R D, probably in Europe, by 2015, said Yin.
Lifan has taken many measures to establish its presence in Africa Most of the strategies are focused on the location, including local hiring and production in Africa, most of the company's products are made from resistant materials heat to fight against the hot weather, said Yin.
He also said more opportunities are coming for Lifan to explore Africa in addition to developing the export business.
We plan now to develop our import activities, such as import of coffee in Ethiopia and sell it to the world.
Yin has a global vision of the company is not far from that of his hero Henry Ford, who worked until he was 85 and with the durability of Ford's business in mind, Yin believes that expect at least 15 years longer than head Lifan.
It also appears that as part of this ambition and staying power, Africa looms large.
Our private companies never lack courage, and Africa offers a great base on which to build our dream.
Lifan sees Africa as a gateway to business, Lifan, africa, world.
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