General manager of GAC Motor says he thinks the days of foreign brands are numbered
The man responsible for making domestic-made cars popular in China, a market hitherto dominated by foreign brands, clearly remembers how Trumpchi, the best-selling Chinese model, got its name.
The story starts nine years ago, when Wu Song, now executive director of GAC Group and director and general manager of GAC Motor Co, was on a business trip to Northeast China.
Wu Song (fifth from left), general manager of GAC Motor Co, introduces the company's GS4 sedan to visitors at a Shanghai auto show. Provided to China Daily |
"I was deeply moved as I listened to a Chinese song - Chuanqi (Chinese for legend) - during a taxi ride," the 52-year-old recalls.
Trumpchi, which is pronounced similar to Chuanqi, sprang into Wu's mind as a potential brand name for domestic vehicles made by GAC, an enterprise that was still on the drawing board at the time.
Wu was then working with Guangzhou Automobile Group Co, the parent of GAC. In 2007, he was asked to lead a team in developing a brand for a new vehicle. For Wu, at first it seemed like a mission doomed to fail.
"Building a Chinese car brand was so challenging because the market was dominated by foreign companies," he says. But Trumpchi sales grew rapidly, especially in the past few years, and today it's a household name.
The numbers tell the story. From 17,000 units in 2011, Trumpchi's first year, sales surged to 190,000 units in 2015 - an increase of more than 1,000 percent over four years. In January, GAC sold more than 33,000 units of Trumpchi cars, up 300 percent year-on-year, according to a company source.
"We realized the dream of building a world-class car by stressing quality and technology, which are among the top concerns for a Chinese carmaker," Wu says. Such talk creates an impression that Wu is a lifelong automobile expert. But that's not the case.
"I didn't major in automobile engineering; but then again I always tried to challenge myself," he says.
One of his first major assignments was to build a car-engine factory, a joint venture project with Japanese carmaker Toyota. "We learned a lot during that project, from technology research and capital control to corporate management."
The factory was to become a role model for Toyota's overseas projects, and engines developed by Wu's team were even exported to Japan.
Then, the onerous responsibility of developing a Chinese-made brand was thrust on his shoulders. "For me, it was a great challenge. I'd never worked in a car production line."
Wu visited libraries and bought many automobile books to broaden his knowledge. During the construction phase, he would visit the factory in Guangzhou's Panyu district every weekend. "I realized it was a dream come true for me, a once-in-a-lifetime experience."
And when the first car rolled off the assembly line, he, along with hundreds of team members, resolved that they would make only quality vehicles and never compromise on this aspect.
"Technology and safety, which are boosted by innovation and efficient management, helped promote our brands. That's why, the company's sales have increased sharply in recent years."
Small wonder then that GAC went on to establish a global research and development network and an international supply chain, with a sales network covering 18 countries and regions.
After its fast growth, domestic and foreign media hailed GAC Motor's success as a miracle. Bloomberg Business honored the company by presenting it an award for the fastest growing Chinese automaker in 2015.
Wu did not allow higher sales alone to become his goal, however. He says his dream is that Chinese automakers would soon play a leading role in domestic and overseas markets. "Foreign brands cannot always be the leading players in the Chinese auto market. It will be dominated by domestic brands in the years ahead."
His prediction could well come true if local auto companies' recent performance is any indication.
Sales of GAC's star sports-utility model, the GS4, which was launched in China in April, surpassed 30,000 units in January, according to a company source.
In global terms, GAC is still a young carmaker. Yet its overseas sales grew by 38 percent year-on-year in 2015, with the Trumpchi brand becoming widely recognized in West Asia.
qiuquanlin@chinadaily.com.cn
(China Daily Africa Weekly 03/11/2016 page30)