Stainless Pipe,Stainless Steel tube,Stainless tube,stainless steel Hydrogrand Steel Pipe Co.,ltd , https://www.hydrograndtube.com
"Cost Innovation" Creates "Reliable Manufacturing in China"
"The timing for large-scale exports of Chinese automobiles has reached a mature stage," said Zhang Xiaoji, Chairman of the China Association of Automobile Engineering, at the recent "High-tech Summit on Scientific Development of China's Light Trucks for 50 Years." He pointed out that self-owned brands now account for as much as 95% of China's light truck industry, with production volumes exceeding 100,000 units. This scale has become a key driver for the industry's global expansion.
In recent years, China's auto exports have maintained a high growth rate for four consecutive years. According to the latest customs data, in 2007 alone, China exported 193,000 light trucks under 5 tons, making up 77.8% of total truck exports and nearly one-third of all car exports.
While the export performance is impressive, challenges remain. Currently, China's light trucks are mainly sold in the Middle East, Africa, and Latin America. "These regions have lower purchasing power, and product quality demands are not as high, which allows Chinese trucks to gain market share through cost advantages," explained Zhou Liang, General Manager of Nanjing Iveco. He added that these areas are experiencing rapid economic growth, creating significant market potential.
Recent data supports Zhou’s view. The average annual growth rate of the light-duty vehicle market in the Middle East has reached 30%, while Europe and the US saw only 3% growth during the same period. In Russia, another major export destination, stricter entry standards for commercial vehicles were introduced this year, including more rigorous Euro III testing and an increase in safety tests from two to nine items. As a result, Chinese truck exports to Russia dropped by 26.26% in January compared to the previous month.
Zhang Xiaolu emphasized that relying solely on low-cost advantages cannot ensure long-term competitiveness. He suggested that the domestic market should serve as a strong foundation, and the industry should focus on strategic exports rather than opportunistic ones.
At the summit, Nanjing Iveco's concept of "cost innovation" gained attention. Zhou Liang stated that between "Made in China" and "Created in China," national brands still need to go through a phase of "Trusted Manufacturing in China." He admitted that the international perception of "Made in China" is not ideal, and there has been overemphasis on the leap from manufacturing to creation. "We must first make 'Made in China' trustworthy so that we can build a solid foundation for its global recognition."
He highlighted that cost innovation is a key strategy for achieving "Trustworthy Chinese Manufacturing." While China will continue to have a cost advantage compared to the West, independent brands should leverage this opportunity to drive technological innovation. By integrating advanced technologies, brand philosophies, and operational models—such as those from Iveco—Chinese companies can gradually meet European standards while maintaining competitive pricing. Over time, the market will begin to value the brand itself rather than just the product.
The ultimate goal of cost innovation, according to Zhou, is to mobilize international resources, operate Chinese companies globally, and build a national brand with a global perspective.