Interview with Soueast-Motor

This year marks the 25th anniversary of the founding of Soueast-Motor. As one of the earliest independent brands established in the Chinese automotive industry, while deepening the Chinese market, the business in overseas markets has also achieved very rich results. This week, the IIA held a telephone interview with Xue Feng, the Deputy General Manager of Soueast-Motor. Xue said: "Soueast's export orders in the first quarter of this year reached 3,500 units, delivery of about 1,100 units, a year-on-year increase of 210%."

Xue also mentioned in the interview that Soueast-Motor's export has obvious characteristics. Although it started late, it has developed rapidly. Export sales increased by 440% year-on-year in 2018 and nearly 80% year-on-year in 2019.

IIA: This year marks the 25th anniversary of Soueast-Motor. What will the company do next?

Xue: This year we will launch a series of brand activities. With the spirit of excellence in craftsmanship and the pursuit of quality, Soueast-Motor has become a model for Fujian and Taiwan enterprises.

At the same time, Soueast-Motor will also organize a series of related activities around the 25th anniversary this year. Through 25 years of accumulation and the spirit of continuous innovation, we will show the fruits of our brand to the public and media.

IIA: The coronavirus epidemic has caused a very big impact on the Chinese auto market. Has Soueast-Motor adjusted some of the previously established market plans and targets? What is your opinion on the market trend this year?

Xue: The epidemic has definitely impacted the Chinese auto market. Soueast-Motor, as a member of the industry, is also inevitably affected. From the overall performance in February and March, the impact of the epidemic on Soueast-Motor is limited. We will not make much adjustment to our annual goals. The market is gradually promoting product launches, and the general direction is still three major businesses: domestic, foreign and new energy. In addition, Soueast-Motor will further improve the sales management and training of the dealer network. The most important ones are technical support and service guarantee. Do these tasks well.

After the epidemic is over, I judge that the market will usher in a small climax, and the recovery of market confidence is gradually emerging. From the data point of view, March will be much better than February, of course, this requires a process. However, as a whole, the competition in the automobile market will be more fierce in the future, and the Matthew effect will be formed. The strong will be more powerful, and the weak will be weaker, so we are also working on the development of Soueast-Motor's future development direction.

In the future, Soueast-Motor will continue to promote globalization, continue to expand overseas markets, increase overseas market share, and further increase export sales. Of course, the global epidemic is still spreading, but it has not affected Soueast-Motor too much. Our overseas performance is still growing.

IIA: What innovative marketing methods did Soueast-Motor launch during the epidemic?

Xue: During the epidemic, the automotive industry was constantly exploring new and innovative marketing models, and new Internet-based car buying models. We also guided dealers to carry out such activities as watching cars online, AI showrooms, and live short videos.

At the same time, Soueast-Motor also fully supports dealers across the country to carry out live broadcast activities online, setting up a 10 million yuan reward to help dealers use live broadcast to collect customers and sell cars. In addition, Soueast-Motor has also increased its assistance to the dealer system in a targeted manner, including adjustment of assessment targets, adjustment of inventory structure, reduction of inventory coefficient, and increase in financial support, etc., to work with dealers to respond to the outbreak of sales to Impact.

IIA: In the resumption of work, what efforts and work has Soueast-Motor made, and how is the progress?

Xue: The company has resumed production on February 21 in an orderly manner. For employees who have resumed work, strict epidemic prevention and control regulations have been implemented, and personnel health and safety investigations have been carried out. Employees who do not need to go to the company's office are required to work from home and complete related work by phone, network, video, etc.

At present, it has become normal for us to connect with national distributors through video conferencing. In addition, Soueast-Motor's export products are continuously exported overseas, and parts suppliers are well protected.

IIA: Can you tell us about your achievements in export?

Xue: Although Soueast-Motor started late in export, it has developed very quickly. In recent years, we have accelerated the market development of the countries along the Belt and Road. At present, we focus on the Central and South American and Central and South Asian markets, and have successively developed cooperation in the assembly of vehicle exports, CKD full parts and SKD semi-parts. In Ecuador in Central and South America, Southeast DX3 has reached the third place among Chinese brands of the same level. In Myanmar in Southeast Asia, Soueast-Motor's overall sales ranked first among local Chinese brands, and it took only a year to achieve such outstanding results.

In 2018, Soueast-Motor's export sales increased by 440% year-on-year, and in 2019 it also maintained a nearly 80% year-on-year growth. The cumulative harvest of foreign sales orders in the first three months of this year reached 3,500 units, with delivery of about 1,100 units, a year-on-year increase of 210%.

So far, Soueast-Motor has opened more than 40 cooperative outlets in the markets of Myanmar, Cambodia, Kuwait, Egypt, Ecuador, Peru, and Costa Rica, which also confirms the spirit of Southeast Asians who love to fight and win. The influence of the brand and Soueast-Motor brand in overseas markets is becoming stronger.

IIA: Could you please introduce the new models and strategic layout of Soueast-Motor this year?

Xue: Soueast-Motor will launch two new models this year, both representing the rigorous quality and car-making process of Soueast-Motor products. The two new models are the new DX7 and the new DX9, both of which will be introduced to the market this year. In terms of strategic layout, through this epidemic, the need for shared mobility and intelligent networking is more urgent. Soueast-Motor has successfully signed strategic cooperation agreements with Shenzhen Dacheng Technology Co., Ltd. and Shenma Travel. In the future, it will promote and share mobility in new energy vehicles. We will carry out in-depth cooperation.