High-quality but inexpensive Chinese automobiles have gradually won the confidence of the African market and are becoming a bright new link in Sino-African economic ties. On September 4, a total of 400 Polarsun minibuses, made in Shenyang, capital of northeast China's Liaoning Province, were shipped to Algeria. This is the largest batch of automobiles the company has ever exported.

Statistics from the Shanghai Haitong Port, China's largest port for automobile exports, show that in February alone, a total of 3,000 automobiles were shipped to overseas markets, of which 1,320 went to African countries.

"Africa is becoming China's major overseas automobile market, a trend that emerged last year," said Chen Ge, Manager of the International Roll-On-Roll-Off Department of the Shanghai Haitong Port. According to him, of the 29,700 Chinese automobiles exported via the port in 2005, nearly half went to Africa.

All the automobiles exported via the port in February were Chinese brands, including JMC (Jiangling Motors Corp. Ltd.), Jiangnan Alto and Yuejin Truck.

"Africa has become our largest export market," said Zou Guojun, Chief of the Import and Export Co. of JMC. Last year, JMC exported more than 4,000 automobiles to Africa. "Our goal this year is to increase the number to 6,000," he said.

The soaring international oil price has slowed down the growth of the domestic automobile market in recent years, which compelled some Chinese automobile manufacturers to shift their eyes to Africa. Moreover, the comparatively lower import barriers make Africa and the Middle East viable destinations. In 2005, more than 90 percent of the cars manufactured by the Wuhan-based Chery Automobile were exported to the two regions. Geely, China's leading private car-making company, exported almost 93 percent of its production.

Service is the key

As a newcomer, Polarsun has been involved in automobile manufacturing for less than four years, and only began marketing its products two and a half years ago. Asked why a new player in the automobile market could make such an immediate impact in vehicle exports, Jin Long, General Manager of Polarsun Motors, said that service, especially post-sale service, is the key to his company's success in overseas markets.

At the beginning, Polarsun did not export vehicles together with parts because, limited by a lack of technology, local distributors' after-sale services could not be guaranteed.

Polarsun therefore devised a service system for its overseas clients, which involves before-sale service, sales service and after-sale service. Before entering an African country and selecting a partner, Polarsun strictly examines local distributors and only chooses those that have a long-time sales experience and a complete sales and service network capable of supplying systematic auto maintenance. Before exporting the 400 minibuses to Algeria, Polarsun's technical, marketing, sales and service personnel visited the country to ensure that their criteria were met.

Then, Polarsun gave the chosen distributors detailed technology support and training, both in Algeria and China. This has helped to establish independent after-sale services.

Meanwhile, in order to improve service, Polarsun has started to establish large-scale logistics and service centers in Africa.

The prices of Polarsun automobiles are comparatively lower than competitors, but low price does not mean low quality, said Jin. "No one would like to buy a car that needs repairing frequently, no matter how cheap it is," Jin said.

In order to reduce production costs, Polarsun simplified and cut luxurious equipment in its vehicles according to its clients' requests. "Low price is our advantage, but high quality is the core part of our competition in Africa," he said.

Mutual cooperation

Egypt is an important market for Chinese cars in North Africa. The number of cars in the country in 2005 reached 2.5 million. It is also the largest automobile assembling Arab country in Africa with its market reaching East Africa, southern Africa and the Middle East. According to a report from the Egyptian central bank, during the 2004-05 fiscal year, Egypt's automobile import value reached $240 million. In the last quarter alone, the amount totaled $100 million, up 100 percent year on year.

On August 1 this year, Chery established an assembly and production line in Egypt, in collaboration with DME (Daewoo Motor Egypt).

Actually, Chery started to sell its sedans in the Egyptian market by cooperating with the Egyptian trading company CIG in November 2004. By the end of 2005, about 2,000 Chery cars had been driven away by Egyptian customers. Experts say the form of production localization will greatly promote Chinese car brands in Egypt and increase its sales.