By the end of 2016, diesel engine producer FAWDE will have supplied Vietnamese auto manufacturers with 4,000-5,000 more units than it did in 2015, as the company continues its international expansion.
FAWDE, which focuses mainly on diesel engines and spare parts for trucks and buses, has been increasing its exports to Vietnam and other ASEAN (Association of Southeast Asian Nations) countries over the last several decades amid increased market demand and relaxing of local policy.
FAWDE produces seven main engine types, known as the W, X, K, F, L, M and N series and maintains a constant stock inventory of 35,000 units. It has also created a network of service outlets across Vietnam by working with local auto manufacturers to significantly reduce its local service radius and repair time.
It began accelerating its delivery and marketing operations in Vietnam in 2008, first establishing a Central Parts Warehouse in the capital Hanoi in 2012, which currently stocks over 500 kinds of common parts, including both those under warranty and special spares.
Commenting on the company's growth to date, FAWDE chairman Hengrong Qian said, "As we have been paying increasing attention to overseas markets over the last two years, our office in Vietnam has also stepped up marketing efforts to build a market position where it performs well in the segments of trucks and buses and achieves full coverage of local auto manufacturers in Vietnam.
In the truck segment, FAWDE continues to maintain a good cooperative relationship with Vietnam's largest auto manufacturer Truong Hai Auto Corp. In 2015, we also engaged with the second largest auto producer in Vietnam - TMT Motor - by supplying more than 1,000 units of engines in the first year of cooperation. In the same year, we also secured an order of 100 units of high-end models (260 hp) from Dongfeng Changjiang, the third largest auto maker in the country."
Furthermore, the company recently signed an LOI for strategic cooperation with Vietnam's fourth largest auto company with a sample engine already delivered and large quantities of orders expected within this year.
In the bus segment, FAWDE has achieved full coverage of the northern part of the market, where Plant No. 23, Plant No. 51, Red River and VEAM are taking sizable delivery of engines from FAWDE. The delivery of 80 units for a single model has been made and orders are expected to add up to 150 units for the whole year, providing an eye-catching success story for any single product.
Based in Wuxi, China, FAW Jiefang Automotive Co., Ltd. Wuxi Diesel Engine Works (FAWDE) supplies diesel engines and spare parts to leading manufacturers both in China and across Southeast Asia. www.fawdieselengine.com