Chapter IX: Good Neighborliness and Friendship

The current India is China, which just began to shout the slogan of reform and opening up in the early 80s, and as long as the future development can have China's five-point skill level, then investing in India for 10 years is a business that will make sure that it will not lose money.

Therefore, Han Hao has strengthened his belief in investing in India, and intends to deploy capital to establish an investment fund to buy the economy of this large South Asian country on a large scale in the future.

Like Chunghwa Group's large-scale mergers and acquisitions in China, Tata Motors has also taken the initiative and has just announced that it will take Daewoo Motors' commercial vehicle business into its pockets, showing its unwillingness to develop in the future. It is said that during the acquisition process, there was also a confrontation with SAIC from China, with Tata Motors bidding higher to take Daewoo Commercial Vehicle.

Ratan was also surprised to learn that Han Hao had completed the product line of buses and trucks in a short period of time, and the two sides agreed not to rule out continued cooperation in the field of commercial vehicles in the future and introduce high-quality and low-cost Chinese products to India.

The "Tata Panda" motorcycle, which was launched in the early import mode, was specially customized for the Indian market, and quickly opened up the sales situation with its price advantage.

After 10 years of R&D progress, the 125CC motorcycle manufactured by Zhonghua Group has caught up with Japanese products, and even surpassed the lead in many places. In terms of practicability, Huaxia motorcycles are even more advanced, fully meeting the situation of urban and rural roads carrying people and goods.

In China, defeated Japanese products, and now come to India, Huaxia motorcycles still show strong competitiveness, lower than your price and better performance than you, a little comparison of many Indian consumers turned to the "Tata Panda" ranks.

Speaking of Huaxia motorcycles, Indian consumers may be confused, but they still recognize their own Tata brand, and motorcycles marked with the Tata logo are a kind of strength endorsement.

This year, China's motorcycle production is expected to exceed 20 million units, of which 7 million units are exported, and the export volume of Zhonghua Group alone will reach 3.2 million units.

The first batch of cargo ships to set sail from the Dinghai port terminal in China transported more than 300,000 Huaxia motorcycles to Indian ports for OEM sales, and before the Tata Zhonghua factory was put into operation, the Chunghwa Group received a preferential tax policy for India's 500,000 motorcycle quota. In terms of the import of core auto parts, Zhonghua Group has also obtained a six-year tariff protection period as a preferential investment.

At the moment when Chinese motorcycles landed, the price of India's domestic motorcycle market fell in response, and the price loosened by about 5%, which shows that the Japanese motorcycle brands that dominate India are afraid of Huaxia motorcycles.

The initial results of the motorcycle market have further strengthened the confidence of Tata Group in cooperation with Zhonghua Group, and Huaxia Hongguang and Huaxia QQ will be the main forces to enter the Indian automobile market in the next batch.

In developing countries, price is the decisive factor in determining whether consumers buy or not, and this is where Zhonghua Group excels, which can manufacture qualified automobile products at an unimaginable low cost. Especially now that it has gradually gotten rid of patent restrictions and can be independently developed, the cost of large-scale production at home and abroad has been further reduced.

The opening of the Tata Sino-China joint venture has finally arrived, and the prime ministers of China and India, two major Asian countries, can attend and unveil it in person, indicating that the company is destined to be extraordinary from the day it opens.

During the talks in New Delhi, the Chinese and Indian prime ministers signed a friendly cooperation agreement and proposed to increase the economic and trade volume between the two countries to $10 billion in 2008.

Now Zhonghua Group has directly invested 500 million yuan, plus the subsequent import of many automobile and motorcycle spare parts products from China, it is estimated that it can complete a 10% share. If the joint venture develops smoothly, it is very likely that the Zhonghua Group alone will be able to swallow $10 billion in the future. After all, cars, SUVs, buses and trucks are still waiting to land in India, and they are enough to form a new Chinese army.

"You have done a great job in your factories in Russia, conquering discerning Russian consumers with excellent products. Not long ago, I met with the Russian Prime Minister, and he also specifically mentioned the automotive products of your Zhonghua Group, saying that your cars have greatly changed the impression of many Russians on Chinese goods, and I did not expect the Chinese to develop so quickly in the automobile industry. At that time, he will visit China and hope to bring people to the Zhonghua Group to learn from the experience and bring your advanced experience back to Russia.

I hope that your joint venture in India can also bring China's excellent products to the Indian people and promote China's positive image as it did in Russia. The image of a country may form an initial impression when foreign friends first come into contact with the country's goods. If they come into contact with the products of the Zhonghua Group and use them well, they will naturally have a good impression of China, which is conducive to the maintenance of friendly relations between our two countries!"

The Chinese prime minister and Han Hao are old acquaintances, and he encouraged him at the unveiling scene.

After the new government took office, the leaders first visited its Asian neighbors, indicating that China's international strategy has shifted from west to east and that it has given priority to maintaining good good-neighborly and friendly relations. The whole country is firmly committed to the principle of pursuing economic development and hopes that there will be a stable international environment in the surrounding areas. At a time when Europe and the United States are focusing on the Middle East, China is slowly consolidating its position as a great power in Asia.

"We intend to develop in India for a long time, and we are guaranteed to bring the best products to the local market, so as not to disgrace our Chinese products.

The motorcycle products sold in the form of imports have been recognized by Indian consumers, and many people do not believe that this is a product made by the Chinese, and think that it is a new Japanese brand.

This situation shows two points, one is that our products are already on par with the Japanese side, and the other is that Japanese brands have a wide influence overseas, and we still have a long way to go. ”

Han Hao briefly introduced the situation encountered in the local area to the premier.

"Chinese companies going overseas are still at the level of primary school students, and there is still a lot of homework to make up. No matter what you do, the country is your strongest support.

I have instructed the comrades of the embassy in India to change their concept of work, to show more concern for the development of Chinese-funded enterprises investing in India, and to solve problems for you. Not only the domestic economy should be developed, but even abroad, it is necessary to do a good job in the Chinese-funded overseas economy. ”

The prime minister is still very far-sighted, knowing that developing the economy and supporting the overseas development of Chinese-funded enterprises is a major matter.

In addition to the unveiling of the company, it is also the day when Huaxia Hongguang and QQ are officially launched in India, and the new cars assembled in the CKD mode will be sold in India under the "Tata Panda" brand.

The new model has been improved for the Indian road conditions, and the price has been reduced due to the corresponding simplified specifications taking into account the Indian conditions, so as to start competing with Suzuki in the market.

It has always been the turn of the Zhonghua Group to copy this behavior and sell it in India. For example, ESP, leather seats, CD players, co-pilot airbags, sunroofs, etc. have been abandoned, in order to reduce the price of the whole vehicle, the price of the car has been reduced to about 3-50,000 yuan, so as to cater to the consumption power of the Indian people. Tata also proposed to simplify the bumpers, in exchange for lower price competitiveness, such a crazy behavior was rejected by Han Hao, money to earn at least safety to guarantee.

The Indian auto market is the third largest market in Asia, after China and Japan, with annual sales of 1.5 million units, and has broad prospects for development in the future. Unlike Chinese who like sedans with good face, Indians are more practical and prefer mini cars, as long as they can walk on four wheels.

Suzuki is relying on the advantages of mini cars, Alto models firmly occupy the top spot in the local sales list, and it is no wonder that the company's president Osamu Suzuki insists on transferring the Indian experience to China, and is only willing to develop mini car products.

The back waves of the Yangtze River push the front waves, and the Zhonghua Group, which started from the mini car under Suzuki, has now begun to blow the horn of counteroffensive to its master, intending to use the experience of catching up with Suzuki to really fight a business war in a third-party country, so as to prove who is the real king of the mini car world.

Behind Hongguang and QQ, there is also Huaxia Zhiguang ready to move, this large micro noodles independently developed by Zhonghua Group, which can be sold at a price of more than 20,000 yuan after simple configuration, which is believed to greatly stir up the existing automobile market in India.

Why did Volkswagen, General Motors, and Toyota not enter India, because after research, it was found that this is the world of mini cars, and it is likely that it will not make money to build factories for production.

However, in Han Hao's view, although the profit of mini cars is not large, as long as it has a firm foothold in India, it can still make money through small profits and quick turnover. Zhonghua Group's Huaxia brand products are strong in the low-end market, and they have enough strength to dig gold in the Indian market. What's more, if you earn less today, when India's economy grows in the future, you will be able to lay out in advance and gain more. At present, the big international brands are not coming, which is just for the Zhonghua Group to expand its power, and when they come in the future, they can defeat each other head-on.

In the past, China implemented the strategy of encircling cities from rural areas, but today the strategy of encircling cities from rural areas is still being implemented around the world, starting with markets that international giants do not pay attention to, and gradually cultivating their own forces to compete with them.

After the success of his visit to India, the Chinese premier visited Pakistan and was accompanied by Han Hao.

With a population of 160 million, Pakistan is also one of the most populous countries in Asia, and most notably the country has close ties with China.

However, compared with India, Pakistan's domestic economic situation is worse, the regional development is more unbalanced, and the industry is dominated by cotton textile industry, which shows the dominance of its light industry.

China and Pakistan have signed a free trade area agreement, and at the same time stipulate that the bilateral trade volume will reach 15 billion US dollars within five years, and the Pakistani side strongly hopes that China can invest to help it develop its economy.

Why does China attach great importance to its relationship with Pakistan?

First, it is due to the geopolitical need to restrain India, and second, Pakistan has a great say in the Iranian countries, and can assist China in establishing good international relations from the side.

If India is the China of the 80s, then Pakistan is the China of the 70s, with a more backward economy but also more development potential.

Compared with other countries, Chinese capital is more unimpeded in Pakistan, and it is too late to regret it in the future if you don't start now.

In this economic and trade agreement, Chinese state-owned enterprises have made a big show, and they will help Pakistan develop infrastructure on a large scale, and cooperate in roads, hydropower stations, power grids, etc.

Han Hao also came forward to sign a cooperation agreement, Zhonghua Group will first set up a local assembly plant of 200,000 motorcycles, and in the next three years, build a local production plant of 500,000 units. Motorcycles will be mainly used on straddles, and products such as scooters will not be introduced in the country due to the fact that women are not suitable for cycling. Compared with the Indian market, Pakistan's motorcycle market share is only 600,000 units, which is still in its infancy.

With the visit of the chief, the development path of the South Asian region has been determined, and the Zhonghua Group has spread its influence to more than one billion people in neighboring countries, preparing for future development.