Chapter 92: Auto Show Harvest

The Tata Group, India's largest conglomerate, was bloated and inefficient due to its family-run management, and it struggled in the mid-to-late '80s. At this time, Ratan Tata (referred to as Ratan) was born, and as a third-generation member of the Tata family, he went to the United States to further his management studies, and after returning to China, he took over the Tata Group as the de facto helm.

With a keen sense of smell, he advocated a big push into the steel industry, and in the early 90s, India's rapid economic development and huge demand for steel brought a new life to the Tata Group. He then seized the opportunity to modernize the group and reinvent the Tata Group, relying on the funds obtained from the steel industry to enter emerging industries such as telecommunications, automobiles, tea, and IT, and become a well-known modern enterprise in India.

The biggest profit point for the Tata Group is the steel company, but Ratan has a long-term vision and wants to make a difference in the automotive sector. From steel to automobiles, it belongs to the upward development of the industrial chain, and the industrial added value brought by automobiles is more, and the profits obtained are more abundant.

Although Tata Motors claims to be India's second-largest car company, it is not very competitive, as can be seen from the two small cars it launched at the auto show.

Maruti Suzuki, India's largest automobile company, is more competitive than Tata Motors, and its sales are far ahead. The company is a joint venture between Maruti of India and Suzuki of Japan, but Suzuki has a 54% stake in the majority shareholder, and the joint venture model has been very successful in India.

"The joint venture is a very viable and realistic development model for Tata Motors, and it was clear that Maruti Suzuki was a good example for us. ”

For this reason, Ratan has discussed joint ventures with Toyota and Volkswagen, but in the end they could not reach an agreement for various reasons. At this auto show, Latan led a delegation to Geneva to participate in the exhibition, but the scenery was taken away by the Chinese.

He took his men down to the booth of the China Group and saw the new cars displayed by the Chinese.

"It's a very good car, it's good for people and cargo, it's not big but it's very powerful. ”

Unlike the others who revolved around "Tang" and "Qin", Ratan focused his gaze on Huaxia Hongguang, in whom he saw a strong practicality.

A small MPV, capable of working on various occasions, IKEA, not only suitable for China's national conditions, but also very suitable for India.

Of course, Ratan also inquired about the price of Huaxia Hongguang and learned that it may be in the early 60,000s, which is a bit expensive, but if the cost is controlled, it will be very competitive in the Indian market.

"I heard that Suzuki was defeated by this group of Chinese in China, and Suzuki's micro-car could not compete with them, and its market share was gradually declining. ”

The subordinates told Ratan Dao the information they had collected before, and he also introduced Han Hao's situation.

"Han Hao, the owner of the current Zhonghua Group, is the richest man in China, with an estimated net worth of 7 billion US dollars, which is at the top of Asia. ”

He is very concerned about China's economic development and knows that the richest man in China is a young man who makes cars.

"China's auto market has become the most competitive place in the world, and the global auto giants are all playing in it. Zhonghua Group can develop in the cracks, and it has also developed such a down-to-earth car, which is indeed extraordinary.

This time we lost to the Chinese, there is no reason to regret it, they did better than us. ”

Ratan admits that he is not as skilled as others at this auto show.

When Ratan wanted to take a closer look at the QQ model at the Chunghwa Group booth, he was pulled by his panting subordinates and told him that Han Hao was currently at the Tata Motors booth.

This is an excellent opportunity, to be able to have a personal conversation with Han Hao, the head of the China Group, must not be missed, Ratan vaguely felt in his heart that there might be a possibility of cooperation between the two sides.

Walking back to the Tata Motors booth with his subordinates, Ratan saw a young Chinese man in a gray suit and a Chinese flag brooch from a distance, sitting calmly on a chair and reading the materials.

Han Hao, the richest man in China, recognized the identity of the other party at first sight. Such a self-confident temperament that is light on weights is by no means something that ordinary people can show, and Ratan knows that the other party is the same kind of person as himself.

The heroes saw each other with affection, and when Han Hao saw Latan, he knew that the other party was also a business strongman. Before he came, he had a brief understanding of the current situation of the Tata Group, and he was full of praise for Rattan's ability.

"A direct dialogue between the new business leaders of China and India!"

The quick-eyed Tata Motors staff seized the opportunity to take a photo of Han Hao and Ratan shaking hands for the first time, which was published in India's largest-circulation newspaper after returning home, using the language as the headline on the front page.

Ratan praised the uniqueness of Huaxia Hongguang's design, and he said that he likes it very much and is very optimistic that this model can sell well in the Chinese market.

"Only those of us in the developing world will really understand what kind of products our people need. Although India's pace of development is slower than China's, its demand for automotive products is very similar to that of the Chinese. If we can, we would like to welcome Chunghwa Group's cars into India and build a joint venture factory to produce them. ”

The time of both parties is very precious, so Ratan took advantage of Han Hao's presence to put forward the joint venture intention.

Zhonghua Group can beat Suzuki in the Chinese market, and it may not continue to beat Suzuki in the Indian market, and a joint venture between Tata Motors and Tata Motors looks very feasible.

Unexpectedly, the Indians were so active, Han Hao thought that he originally wanted to take a look at the Indian market, but he didn't expect to meet Tata Motors.

"We are also very interested in the Indian market, China and India are very similar, the economic development is similar, and there is a certain degree of overlap in the demand for cars.

If the results of the inspection are satisfactory, we are willing to cooperate with you to a deeper degree. ”

Han Hao agreed to the other party's invitation, and soon went to India to investigate, and if appropriate, he entered a joint venture with Tata Motors to introduce Huaxia Automobile into the Indian market.

Although the Indian market just sold more than 1 million cars last year, with a population of more than 1.2 billion, Han Hao believes that India is worth investing in now.

Unlike mature markets such as North America and Europe, Russia, Southeast Asia, India and other countries are the weak points of the layout of multinational auto giants, and Zhonghua Group is taking advantage of this opportunity to enter.

They left contact information for each other, and soon after the appointment, the two sides exchanged visits, and Han Hao ended the talks with the Indians.

"He's very smart and decisive, and I like to deal with people like that. Tata Motors must seize the opportunity to join forces or risk being left far behind by Suzuki. ”

After Han Hao left, Ratan commented.

Tata Motors could not compete with Suzuki and had to rely on a third party. Zhonghua Group is the perfect choice for third-party forces.

Returning to the booth of Zhonghua Group, Han Hao also made a summary of the strategy of entering India.

"Only by uniting all the forces that can be united can we compete with the international auto giants. Besides, if the countryside surrounds the cities, as long as we blossom and bear fruit in the developing countries, it will be natural for us to enter the developed countries in the future. ”

I thought that participating in the Geneva Motor Show was just to create momentum and improve brand influence, but I didn't expect that the harvest of this auto show greatly exceeded Han Hao's imagination.

As an international auto show, it naturally attracts car people from all over the world, including some powerful dealers.

Among them is the European MC car dealership, they saw that the cars from China are of high quality and low price, so they want to see if they can import them to the European market.

"As long as we pass the EU's mandatory crash verification and obtain a license, we can sell the cars of the Chung Wah Group in Europe. Of course, we will promote your products in Central and Eastern Europe, after all, value for money is a big consideration. ”

The sales director of MC Group took the initiative to come to the door and introduce Han Hao.

They want to get the exclusive dealership of the Chunghwa Group in Europe, committing to an import quota of 30,000 cars a year. Although the EU car import tariff reaches 10%, after deducting the increased cost, Chinese cars still have a price advantage.

Breaking into the European market, the threshold is very high, the crash results alone cannot be controlled, and there are exhaust emission standards, not to mention the car protection policies of other EU countries.

Han Hao expressed cautious optimism about this, and it is estimated that the economic benefits of selling cars in Europe are average, but the image improvement is really good, which is something that can be considered.

In addition to Europe, there are also dealers from Saudi Arabia and Syria in the Middle East, Libya in Africa, Brazil in South America and other countries to come to the door, hoping to start cooperation business with Zhonghua Group.

In addition, the foreign media who came to cover the auto show also took the Chunghwa Group booth as a must-stop and began to help introduce cars from China free of charge.

"The Chinese characters of the car logo clearly tell you that this is a car from China. Their Chinese meaning also represents the meaning of China.

It's a bold and interesting endeavour, and Chinese characters could be the dominant element in China's growing influence.

The car looks like it has elements of Chinese culture, and the design contains ......"

A journalist from the United States said this in front of the camera.

Through this auto show, with the help of media publicity, many foreign friends know that there is a good car production company in China called Zhonghua Group.

On the opening day of the auto show, "News Network" broadcast the grand occasion of Zhonghua Group, as a representative of Chinese auto companies, appearing in the top international auto show for the first time.

"The booth of Zhonghua Group became the most lively place in the whole Geneva Motor Show, and everyone was attracted by cars from China, among which "Tang" won one of the top ten most popular models of this year's Motor Show.

On behalf of China's automobile companies, Zhonghua Group has the courage to go abroad, participate in global competition, and show its technical strength, which is worthy of learning and reference from our domestic counterparts!"

"News Network" deliberately gave 90 seconds of news footage to the auto show, vigorously promoting the craze caused by Zhonghua Group abroad.

In the next few days, major media outlets across the country reported that the Chung Hwa Group's participation in the Geneva Motor Show was highly praised. With this, Zhonghua Group has become a positive example of winning glory for the country, and the quality of automobiles has been highly recognized by foreign people, and it has also become one of the subtle communication messages.

In a short period of time, the two major automobile brands of Zhonghua Group, "Huaxia" and "Zhonghua", have leapt to the forefront of the influence of domestic independent automobile brands, and are close to the old belief of the Chinese people - Hongqi. In the ranks of mass-produced automobiles, the two major brands of Zhonghua Group have become second only to the joint venture brands, and have become the potential choice of many consumers' purchase intentions.

Brand building is not overnight, but the Geneva Motor Show has fully improved the brand image of Zhonghua Group, and has begun to distance itself from other domestic independent brands.