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Business / Auto China

I'll supply the truck, you supply the parts

By Xing Zhigang and Li Jiabao (China Daily) Updated: 2014-05-27 07:12

The truck assembler employs about 150 people, of whom 105 are permanent, with the rest contractees. Four staffers are from China, including the CEO overseeing five local senior managers, and the rest are locals. The company sold 630 trucks last year (surpassing a target of 600) and hopes to sell 800 this year.

"The prospects are very good, but the market is getting more and more fierce," Parry said.

I'll supply the truck, you supply the parts
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I'll supply the truck, you supply the parts
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"There are a lot of competitors who are also from China. But I think we have the right recipe, and the main selling point is price. Quality is good, and the cost per kilometer has been kept low. Localization is really what the African markets want," Parry added.

By keeping parts pricing in line with a competitive vehicle purchase price, Ever Star aims to ensure an affordable cost of ownership.

The in-house financing division also has made buying the company's vehicles more attractive, bolstered by trade-in deals, Parry said, who added that while Ever Star is "still in its infancy", it is growing with a lot of new products.

Leaders in the market include Mercedes-Benz and Volvo. According to Neil Genis, Ever Star's head of procurement and logistics, European trucks "are getting very sophisticated and expensive, and it's very difficult to get the expertise in other African countries".

Peter Stirk, senior head of Ever Star's assembly operations, said: "The Powerstar is a simple vehicle, and the engines from China are not that high-tech. Local experts can work on them without computers, making the products very suitable for Africa. The construction is usually done away from cities, and the vehicles can be serviced on site rather than being taken into the city for servicing."

Parry said: "We get the parts from China. Most of the stuff is produced in China, and we use local labor to put it together while adapting the product to the South African market."

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