China’s Engineering Machinery manufacturer Shantui has made a further step to tap the Kyrgyzstan market by opening its first franchise store in Central Asia in its capital city Bishkek earlier this year.
The company, which has entered the Central Asia market for 10 years, is seeking to win more customers in the region.
Shantui contributes to 30 percent of China’s exports of five types of engineering machinery to the Kyrgyzstan market, including bulldozers, excavators and road rollers, and has all the market share of bulldozers, said Chai Sen, Vice President of the import and export subsidiary of Shantui Construction Machinery Co., Ltd.
The company, based in the city of Jining, east China’s Shandong Province, began tapping the Central Asian market in 2009. Since the Belt and Road Initiative was proposed in 2013, Shantui sped up expanding its presence there by building a sales network and setting up sales offices in the major markets of Kyrgyzstan, Kazakhstan and Uzbekistan.
Shantui accounts for 80 percent of China’s exported bulldozers to Kazakhstan and Uzbekistan, said Chai. “Shantui has become a code word for bulldozers for its high quality and good service,” he said, predicting a sharp year-on-year sales growth in Kazakhstan in the first half of this year.
In recent years, more and more Chinese engineering machinery makers have been welcomed by the Shanghai Cooperation Organisation (SCO) countries.
Observers said many of the SCO countries, home to 44 percent of the world’s population, enjoy the population and resources divident, but have weak infrastructures.
Wuzheng, another engineering machinery manufacturer in Shandong Province, has adjusted its vehicle designs to cater to the buyers’ demands in Pakistan, given this country’s tropical and subtropical climate conditions and its right-side driving.
Zhang Xiwen, head of the international trade department of the Wuzheng Group Co., Ltd, said the new improvements on its sanitation vehicles could prolong the service life and improve its driving reliability and fuel efficiency.
Meanwhile, Other China made manufacturing machinery, like electric tricycles and tractors, are also welcomed by the SCO countries, especially in the Central Asian market.
Last November, tractors produced by Lovol Heavy Industry CO., Ltd, went on display on the Kyrgyzstan International Agricultural Exhibition, highly acclaimed by local buyers and industry experts for their stylish appearances and advanced technologies.
Lovol developed new generation tractors with a wide-range horse-power choices and multiple functions specifically targeted the Central Asian market. Their efficient performance, and timely repairs and components supplies helped keep alive the buying sentiment.
Li Guangjie, a researcher with the Shandong Academy of Social Sciences, said the robust growth of trade among the SCO member countries in recent years offers a strategic opportunity for Chinese engineering machinery manufacturers to expand overseas.