MAN has the first distributor in Mongolia.
On November 6th, the signing ceremony of Mann Commercial Vehicles Trading (China) Co., Ltd. and Mongolian NOMIN Company was held in Ulaanbaatar. According to the agreement, NOMIN will formally represent the sales of MAN Trucks in Mongolia and fully promote the expansion and enhancement of the MAN brand in the Outer Mongolia region. At this point, NOMIN became the first dealer of Mann (China) in Mongolia, and Man also became the second European truck giant to enter Mongolia.
What is the heavy truck market in Mongolia, a country that is very close to China but looks far away? Why haven't dealers that used to have high-end heavy trucks start to appear gradually? How will the future heavy truck market in Mongolia develop?
With the same curiosity, the first commercial vehicle network reporter accompanied Man to embark on a Mongolian, this neighboring and unfamiliar country.
Mongolia Market: Economic Heavy Trucks
Walking on the road in Mongolia's national potholes, looking at a Chinese brand truck such as Shaanxi Auto, Heavy Duty Truck, and Bei Ben that has been passing by on the road, one cannot help but make people feel illusions in the middle and western regions of China.
This is Mongolia, where infrastructure is in urgent need of improvement and China’s heavy trucks dominate.
Located in Mongolia in Northeast Asia, the country covers an area of ​​1,656.5 thousand square kilometers. It is one of the largest landlocked countries in the world and has rich mineral resources. She borders Russia on the north and borders China on the east, south, and west. Due to this special geographical relationship, in recent years, with the development of the Mongolian economy, a large number of Chinese brand trucks have flooded into the country, becoming a common exotic landscape on the country’s roads. .
“Compared to China, the cost of the infrastructure used in this country is very low every year, and the truck market is also very small.†Stefan Geiger, Director of Sales of Mann Commercial Vehicles Trading (China) Co., Ltd., told reporters that Mongolian Heavy Trucks The market sells about 5,000 vehicles a year. “After four or five years, people mostly bought trucks of Chinese brands such as Jiefang, Zhongqi, and Beiben. In the past two or three years, Daewoo, Hyundai, and other heavy truck brands have entered this market, but They are more imported into Mongolia and sold in the form of used cars."
Gerhard H. WACKENHUT, Director of the Automotive and Logistics Division of NOMIN, stated that at present, there are about 90,000 heavy trucks in the entire Mongolian market, and Chinese brands dominate the market. Nearly 90% of Chinese vehicles are used in the mining industry.
Although China’s trucks are cheap and inexpensive, they cannot meet the needs of all users in Mongolia. In particular, with the rapid growth of the Mongolian economy for seven consecutive years, the demand for high-end trucks is increasing.
The reporter learned that Mongolia has now entered the ranks of middle-income countries. This is mainly due to the rapid economic development brought about by the development of mining industry and the deepening industrialization in recent years. With the exploration and development of more copper and gold mines and coal mines, Mongolia is expected to become one of the fastest growing economies in the world in the next decade.
At the same time, due to the gradual increase in fiscal revenue, the government has begun to “make up†the lagging investment in infrastructure construction. More infrastructure projects and engineering projects have been launched in succession to provide business opportunities for construction machinery vehicles and logistics and transportation vehicles.
It is from the demand for high-end heavy trucks that led to the recent big action of NOMIN - with the German company Mann, thousands of miles away, the two parties intend to jointly explore wasteland, cut from the high-end, and seize this untapped market segment.
Mann-NOMIN joins hands in pioneering waste
Some people think that in the imported heavy truck market, Mongolia will be the next China. "As more and more high-value commodity shipments increase, users' demand for high-quality, high-reliability trucks is an inevitable increase."
Gerhard H. WACKENHUT also believes that with the continuous development of the national economy and the improvement of transportation efficiency, the demand for high-end trucks is gradually increasing. "Man trucks are mainly located in the field of engineering construction and logistics transportation. These areas are most evident in the requirements for excellent vehicle quality and the value of efficient transportation."
For Man, NOMIN is also a pragmatic option for Manner based in Mongolia. The group is the fourth-largest Mongolian enterprise and the second-largest private company. Its turnover accounts for 3% of the country's GDP, and its business scope has expanded to include supermarket retail, light industrial processing, logistics and distribution, and distribution of cars. "More importantly, NOMIN intends to provide efficient transportation solutions for Mongolian users, which is consistent with the company's corporate philosophy." Dong Chenrui, President of Mann Commercial Vehicles Trading (China) Co., Ltd., responsible for the operation of the Mongolian region, said .
“Mongolia's mineral resources are abundant, which has led to the development of resource transportation. The logistics market has also grown faster. In addition, most of the Mongolian municipal vehicles and fire fighting vehicles are used cars of the Soviet Union. The Mongolian government is making greater efforts to improve this. In this situation, the future demand in this area will be relatively large, and we also understand that MAN Trucks has excellent performance in China's high-end fire engine market, and we want to transplant Man's operation model in China's fire trucks to Mongolia and take its place. Gerhard H. WACKENHUT told reporters: "With the high quality and high added value of MAN's imported trucks, the two partners will have a lot to do in Mongolia."
According to reports, the first Mango truck 4S shop in Mongolia built by NOMIN will be completed in July and August next year. This is also the second domestic Mongolian heavy truck dealership (the first one is a Mercedes-Benz truck, completed in the first half of this year). The 4S store will be responsible for the sales, after-sales service and financial services of MAN Trucks, and together with Mann (China), it will promote the expansion of high-end trucks in the Mongolian market.
The outlook is promising. Cooperation between the two parties still needs to go through several roads.
First, although the economic and trade exchanges between Europe and Mongolia have become more frequent, the awareness of high-end truck brands among ordinary users still needs to be further improved. In particular, it requires a process for customers to recognize and recognize Mann’s efficient logistics solutions.
Secondly, the automobile exhaust emission standards in most regions of Mongolia still remain in the second phase of Europe. Only a few cities such as the capital Ulaanbaatar have begun to implement the National 3 and 4 standards, which will undoubtedly reduce the competitiveness of high-end imported heavy trucks in the region.
Thirdly, the overloading of trucks in Mongolia is more serious. Although the government has repeatedly inspected the overload limit, the effectiveness has not been obvious. This is also a bad news for European and American import heavy trucks.
“As the Mongolian economy develops, more and more customers will choose to purchase high-value transport products. They realize that in the long run, if the vehicles are not reliable, the logistics process will become inefficient and affect His own business.In recent years, the ideas of customers in China and neighboring countries have changed a lot, and the demand for high-end trucks is constantly rising.This is a good development trend. Therefore, at present, we must first ensure that Man's sales network can To keep up with the needs of customers." Turning to the future, Dong Chenrui looks very patient.
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