Recently, at the German embassy in Mongolia, the German truck manufacturer MAN (Chinese name: Mann) has signed an agreement with Mongolia's fourth-largest company, the second largest private company and NOMIN Holdings, which accounts for 3% of national GDP, to jointly build MAN in Mongolia. The country’s first commercial vehicle distribution network. According to the agreement, in 2013, the German MAN's first showroom in the Mongolian capital, Ulaanbaatar, will be completed and officially entered the operational phase.
As a close neighbor of China, Mongolia's economic growth in the past two years has been astonishing. In 2011, it exceeded China and ranked first in the world with a growth rate of 17%. With the lack of growth in developed economies around the world, emerging economies are increasingly valued by multinational corporations and given the responsibility of stimulating production and sales. However, MAN's move in the backwardness of the auto industry and the relative lack of auto production resources in Mongolia tested the industry's confusion.
Geographical attraction
All along, the impression that the Mongolian auto industry has left on people has been relatively backward, starting late, etc., and it is rarely associated with high-end heavy trucks. However, Mann, one of the world's leading manufacturers of commercial vehicles, is now making a move to open up the Mongolian market. According to Yang Aiguo, the deputy secretary-general of the China Motors Products Import & Export Chamber of Commerce, it depends on which model Mann will introduce first or which model to launch. On the other hand, Mongolia is in an attractive geographical location.
“Mann is a traditional manufacturer of commercial vehicles and its products represent high levels of commercial vehicle manufacturing. Just like heavy trucks such as Volvo, Scania, and Mercedes that are now imported into China, the prices of ordinary trucks and domestic trucks Compared to the price of high-end cars, the first thing to look for is whether Mann sells its ordinary trucks or high-end products in Mongolia.In addition, Mongolia has two huge potential markets, namely, China and Russia, and the west is directly connected to Central Asia. The country, in order to further expand its business in neighboring countries is also a possibility." Yang Aiguo told reporters.
Industry insider Yang Zaiyu said: "Now Mongolia's economy is relatively backward, the user's purchasing power is limited, and there is little demand for high-end heavy trucks."
According to reports, Mongolia is one of the poorest countries in Asia and has many international aid projects. Its national economy is dominated by animal husbandry. Light industry, heavy industry, construction, real estate, etc. are at the initial stage. Mines, metallurgy, oil, natural gas and other resources Urgently to be developed.
Large demand for mineral transport
The export of Mongolia's coal has been growing in recent years. Nearly half of the exports have entered China through its southern border. According to the China-Mongolia Investment Forum held in May this year, China has now become the most important investment force in Mongolia, and most of the mineral products produced in Mongolia are exported to China. According to Deng Zabuh Sukhbaatar, Ambassador of Mongolia’s Extraordinary and Plenipotentiary to China, as of 2011, the Mongolian Communist Party exported 21 million tons of coal, of which 99.3% was exported to China; copper, iron ore and crude oil were all exported to China, among which copper 57.6 Ten thousand tons, 5.008 million tons of iron ore, and 2.5 million tons of crude oil.
“In Ganjimaodu Port of Wulatte Zhongqi, Bayannaoer, Inner Mongolia, there were tens of thousands of vehicles pulling coal every day for the first two years and transporting it from Mongolia to China.†said Zhang, a former driver of the coal mine in Mongolia.
It is understood that Mongolia is rich in coal resources, and coal reserves are mainly based on coking coal resources. The current coal production in Mongolia is mainly coking coal, 1/3 coking coal and part of lignite. The country’s most famous Tabun Tolgoi coal mine is the largest undeveloped coking coal mine in the world, 255 kilometers from the Ganqi Maodao port on the China-Mongolia border line. It is estimated that by 2015, the amount of coking coal available for export in Mongolia will reach 50 million tons, which will become one of the major suppliers to the international coking coal market. The importance of Mongolian coking coal imports in the coking coal market in China is becoming increasingly prominent. The amount of coking coal imported by China from Mongolia has increased year by year, from 2.15 million tons in 2006 to 2003 tons in 2003.
“With the development in recent years, the infrastructure for the early suppression of the outflow of coking coal in Mongolia has been gradually improved. The capacity of roads and railways, coal washing capacity at the ports of Ganjimao, Ceke, and Mandurah, which are close to the main mining areas of Mongolian coking coal Capacity and port clearance capabilities are basically formed and continuously improved,†said an industry insider.
“The heavy trucks exported to Mongolia are mainly used for short-distance transportation between coal mines and coal plants. When we first went to Mongolia to run the market, there were many used cars in the region, such as the Soviet Union, Mercedes-Benz, Volvo, etc., but at the time The road condition is very bad, and the vehicle is depleted quickly.†A truck sales company Mongolia market specialist told reporters: “The Mongolian economy has grown rapidly with the development of coal and other mineral resources, especially in recent years when Sino-Mongolian joint ventures have opened up mining products. The increase in the number of resources projects has led to a substantial increase in the domestic demand for various types of tractors and trucks, and the purchasing power of users has also increased. The demand for economical China heavy trucks has also increased."
The market specialist also stated that Mongolia's early accession to the WTO, and the country's auto industry is backward, can not meet user demand, so trucks mainly import. China is close to Mongolia and exports have advantages. Domestic vehicle manufacturers are also adjusting strategic development directions, changing their export models, and actively exploring foreign markets. Coupled with the relatively low prices of domestic cars, the degree of recognition in Mongolia has also continued to increase. However, as domestic commercial vehicle companies have seen this market one after another, vicious competition has followed and has occurred from time to time.
It is reported that Inner Mongolia’s Erenhot Port is China’s largest border port open to Mongolia, and 70% of Mongolia’s items are entered by Erenhot Port. According to statistics from Inner Mongolia Erlian Customs, in the first three quarters of 2011, the number of vehicles exported from Erlianhot was 4013. The main export categories were tractors, buses and trucks, of which 1,444 were tractors.
Infrastructure car or another growth point
The reporter learned that in addition to hard roads in several large cities in Mongolia, the roads in Mongolia are almost entirely original roads without any tracks. There are traces of ruts on the roads. The average speed is about 30 kilometers per hour, but most Areas can take the car. Most of the dirt roads are natural sand roads, so they can be driven shortly after the rain. In Mongolia, larger construction machinery and equipment, such as concrete mixers for civil use and tower cranes for lifting, are difficult to obtain and are difficult to lease. Commonly used small and medium-sized construction machinery such as concrete mixers are also difficult to purchase and lease.
"Although improving the infrastructure construction is a work that the Mongolian government has been working on, at present, infrastructure construction (such as roads, railways, urban roads, airports, etc.) is still unable to adapt to the current development needs and urgently needed to be built. However, the national economic foundation is weak and financial The low income has severely constrained the development speed of various industries, especially infrastructure construction.Mongolia has confidence in further development, but its capacity is limited. This contradiction also determines the inevitability and feasibility of its current use of foreign capital, sole proprietorship, and joint ventures. Sex and priority trends.†Analysis of the industry.
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