In 2012, strong commercial vehicle manufacturers such as Daimler, Scania, and Volvo encountered sales declines in the European market and reduced profits. MAN was also not spared. In order to recover the adverse effects of the European market, Germany Mann put more attention on the "BRIC countries."
Can Mann "wall flowers bloom outside the wall"? Can Mann's efforts in the "BRICS" make up for the decline in Europe?
Decline in European Market Profits Increase Operating Pressure
It is understood that in 2011, German MAN commercial vehicle sales reached a historically good record, with nearly 155,000 trucks and passenger cars being sold. However, high sales did not result in high net profit. In 2011, Mann tried to sell Ferrostaal, a large-scale industrial equipment and equipment service provider. However, due to the company's deep bankruptcy scandal, the company's selling price plummeted, making Germany Mann’s net. Profit dropped sharply from 722 million euros to 247 million euros.
In 2012, the impact of the economic environment made the development of Mann in Germany even worse. According to the forecast of the German Automobile Industry Association (VDA), the sales volume of commercial vehicles in Western Europe in 2012 will fall by 4% compared with the same period in 2011. The direct effect of the sales decline is the drop in revenue. In the second quarter of 2012 alone, the operating profit of German Mann decreased by 50%. From the current point of view, the German Mann only through the cooperation with Scania to ease the pressure and reduce costs.
Brazil's strong market "frustrated"
Brazil has always been one of the strong markets in Germany.
In Germany, Mann has occupied a 30% share of Brazil's 5-ton truck market, ranking first, which is not easy for “outsidersâ€.
In 2011, Mann's revenue in Latin America exceeded 3.6 billion euros. However, in 2012, after Brazil determined to manage environmental pollution problems, the upgrading of truck emission standards caused the entire Brazilian truck market to shrink by 15%, which also led to Germany's lowering its expectations for this strong market.
According to Germany's forecast, the gross profit of the Brazilian market in 2012 will fall by 9% compared to the same period of last year, in which revenue from the commercial vehicle business will fall by more than 5%.
However, from the recent performance, Germany's expectations for the Brazilian market are much more optimistic than other competitors. Recently, Volvo has reported the reduction of truck production in response to the decline in sales in the Brazilian market, while Germany has yet to cut production plans.
Indian market ready to go
In order to cope with the strong Indian local commercial vehicle manufacturers, companies have chosen to adopt a slow penetration approach to spread to this potentially huge market.
According to the German Mann plan, the sales volume of its trucks in the Indian market will reach 10,000 within 2-3 years, and its market share will increase to 5%. In order to achieve this goal, Germany Man implemented a "two-pronged" strategy in the Indian market. Firstly, MAN's joint venture in India, MANFORCE, mainly produces CLA series mid-to-high-end heavy trucks. The load range covers 16-49 tons, the price ranges from 33470 to 52,022 euros, and the target output is 24,000 units; second, India will As an export base, exports to the Philippines, Indonesia, Uzbekistan and Saudi Arabia, according to statistics, in 2011, Germany Man exported a total of 1,250 trucks in India, accounting for 25% of its total sales.
According to forecast, in 2020, India's truck market will be expanded to 300,000 units, how much can Germany's Man share in this attractive market, a look at its strategy, and secondly, it will look at its relationship with local manufacturers. Game."
Force the Russian market
Lars Himmer, chief operating officer of MAN Commercial Vehicles, Germany, said: "Russia has great potential for development and occupies an important position in Mann's internationalization strategy."
Due to the economic crisis, the country’s truck market once collapsed, but with the doubling of oil and ore prices in recent years, the Russian economy has returned to a rising path. In recent years, German Mann has also made remarkable achievements in the Russian market. In 2010, the sales volume of trucks with more than 10 tons of multinational commercial vehicle brands in Russia reached the highest point, about 11989 vehicles. Among them, Germany's Man sold the highest, followed by Scania, Iveco, Volvo and Daimler.
In recent years, the Russian government has continued to emphasize local manufacturing. Multinational commercial vehicle companies have chosen local assembly or joint ventures under the pressure of high tariffs. For example, Daimler cooperated with Russian commercial vehicle manufacturer Kamaz, and Volvo Group built a factory in Kaluga to sell Volvo and Renault brands.
In fact, as early as 2008, German Man started the Russian site selection plan, and finally selected Petersburg from among the five cities of Moscow, Kaluga, Smolensk, Petersburg, and Nizhny Novgorod. Scania also assembled trucks in Petersburg.
In 2012, Mann and Scania were taken over by the public. German Mann finally decided to sit in St. Petersburg, indicating that Mann and Scania of Germany will work together to make greater determination in Russia.
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