China vehicle manufacturer eyeing East Malaysian market

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DALI PREFECTURE, Yunnan Province, China: Dali-based commercial vehicle manufacturer, Yunnan Lifan Junma Vehicles Co. Ltd is planning to expand its existing market in Malaysia, said its group chief executive officer He Zhanfei.

In fact, He said the company would visit East Malaysia in July to study the market potential there.

Dali Junma Industry and Trade Group was established in June 2003, producing 30,000 tractors annually at its production lines in Eryuan County. In 2004, Yunnan Lifan Junma Vehicles was established with an annual production capacity of 200,000 vehicles from its five manufacturing plants.

The company develops two vehicle brands, namely Sojen and Projen, comprising nine series, 36 models and 146 variants.

The media delegation from Sabah had the opportunity to visit Yunnan Lifan Junma Vehicles headquarters and interviewed the top management of the company at Fengyi Innovation Industrial Park at the National Economic and Technological Development Zone, Dali during the recent trip to China organised by the Consulate General of the People’s Republic of China in Kota Kinabalu.

The delegation was taken on a tour around the production plant where the trucks are manufactured and assembled.

In line with the Belt and Road initiative and leveraging on Yunnan’s advantage as the hub in reaching out to South Asia and Southeast Asia (SEA) , the company is not only focusing on expanding its share in the domestic market, but is also actively venturing out to market its commercial vehicles to South Asia, SEA and West Asia regions.

According to He, Yunnan Lifan Junma Vehicles recorded RMB 19.4 billion production value in 2016.

Last year, the company produced 130,000 trucks, 40,000 low-speed commercial vehicles and 96,000 tractors, which are not only sold in the domestic market, but  exported to nine countries in SEA, South Asia and West Asia.

“In 2016, our company exported 13,478 vehicles, 10 per cent of which were to Malaysia. We have high hopes on the markets in West Asia and SEA,” he said.

He said Yunnan Lifan Junma Vehicles entered the Malaysian market early this year and had set up a sales outlet in Kuala Lumpur.

The next step will be a trip to Sabah and Sarawak next month to assess the market potential in East Malaysia, he said.

The company would make the necessary adjustments to its vehicles and accessories to meet the specifications required for different road conditions and terrain in overseas markets. The company is also in international trading, real estate and cultural tourism business. According to Dali Foreign Affairs Office senior official Xie Yubao, Dali produces 70 per cent of dairy products in Yunnan Province. There are 90,000 dairy cows in Dali to supply milk to three local dairy and yogurt product manufacturers.

During the trip, the media delegation visited Yunnan Ouya Dairy Products Co. Ltd that produces more than 70 kinds of dairy and yogurt products.

Established in 2003, the company recorded a sales revenue of RMB 950 million last year. At present, it has two factories which can process up to 640 tonnes of fresh milk daily. Each day, the company processes 300 tonnes of fresh milk sourced from its own dairy farms, partners and more than 30,000 individual dairy farmers.

Its annual output is reported at 150,000 tonnes. Due to growing market demand, the company has invested RMB 300 million in building its third dairy processing plant last year, which is expected to boost the company’s annual output to 200,000 tonnes.

The dairy and yogurt products made by Yunnan Ouya Dairy Products are certified halal.

Located at Xiaguan, Dali, Yunnan Xiaguan Tuocha (Group) Co. Ltd is one of the top three tea companies in China in terms of the scale of production. The company was formerly founded as Yunnan Xiaguan Tea Factory in 1941. In the 1950s, dozens of big and small tea firms established in the early 20th century in Dali were integrated into Xiaguan Tea Factory through public-private partnerships.

The company produces close to 200 varieties of tea products, including pressed tea, green tea, specialty tea and tea bags. The company has more than 700 outlets at 30 provinces in China, and produces up to 5,000 tonnes of tea annually. Its products are exported to over 10 countries including Japan, Korea and Malaysia.

Yunnan Xiaguan Tuocha is the patent holder of Tuocha tea which is a dome-shaped Pu’er tea as well as the only tea producer that makes Tuocha tea in mushroom shape. The company is  constructing a new 50-acre production, sightseeing cum leisure site at Yinqiao town.