Hualing joins hands with Mitsubishi, Cummins, and ZF to occupy the international high-end market
Valin's international strategy began to take shape in June. Prior to this, the company had already laid a strong foundation through its "alternative import" initiative. In key regions like Fujian, Shenzhen, and Guangzhou in the Pearl River Delta, Hualing Heavy Trucks successfully replaced imported heavy trucks for one of the country’s largest and most influential customers. At the start of last year, the company introduced the concept of "replacing imported vehicles with domestic ones," which gradually matured into a broader market strategy. This led to a new export-oriented approach being pushed forward within the industry.
On June 9th, Hualing Heavy Trucks announced a major partnership with Mitsubishi, Cummins, and German ZF at a press conference held at Beijing Diaoyutai State Guesthouse. The event marked the expansion of both domestic and international markets, with plans to export 1,000 heavy trucks and issue 100 international bids.
The company is now working to change its long-standing image of low-cost, low-quality, and low-tech exports. "By teaming up with industry giants like Cummins, Mitsubishi, and ZF, we are planning overseas markets and implementing an internationalization strategy that goes beyond just replacing imports," said Chairman Liu Hanru.
With strategic partnerships evolving from cooperation to stronger alliances, Hualing aims to break free from price wars in the domestic truck market, following a path similar to Haier. When Chinese appliance price wars were rampant, Haier expanded globally, entering developed markets and achieving industrial upgrading. Today, Haier products are more expensive but highly regarded by consumers. Inspired by this model, Hualing is now targeting high-end international markets.
Liu Hanru emphasized that "in the coming years, Hualing must represent China’s auto exports." From domestic competition to import substitution, and then to international expansion, the company is moving from foreign companies competing in China to Hualing competing with top global brands. This shift seems natural for the company.
Hualing’s international strategy is aimed at high-value-added middle and high-end markets, changing the previous perception of Chinese products as low-cost and low-quality. By integrating high-reliability components such as Mitsubishi engines and ZF transmissions, Hualing is positioning itself in the global high-end market. For instance, the company is promoting high-power diesel engines used in the U.S. and Japan—products that are rare in the domestic market.
Hualing’s overseas clients are large conglomerates or powerful local companies. For example, an Algerian merchant supplies 90% of daily necessities like oil and sugar, while Vietnamese customers include Koreans who compete with Hyundai Heavy Trucks. These clients demand high-grade engines, resulting in higher prices for Hualing trucks abroad, yet they remain significantly cheaper than similar products from Europe, America, and South Korea.
Innovative strategies have won support from key partners. At the press conference, Vice President Shi Zhengfu mentioned that Hualing has sold over 1,000 units internationally since last year’s Shanghai export ceremony. Support from companies like Mitsubishi Fuso, Cummins, and ZF has been crucial to Hualing’s success.
Mitsubishi Fuso expressed satisfaction with seven years of successful collaboration, stating it will work with Hualing to plan the global market. Cummins’ Song Bowen praised Hualing as a leader in China’s automotive innovation, noting the deepening relationship between the two companies, now covering supply, marketing, technology, and service.
Hualing has also gained attention for its service and cost-effectiveness. Exported to the Middle East, North Africa, Central Asia, and Southeast Asia, the company has built a reputation for good value. Overseas users appreciate Hualing’s reliable service, with technical teams dispatched to provide training and support.
Looking ahead, Hualing plans to move its R&D center to Shanghai, invest in right-hand drive vehicles, and participate in the prestigious Hanover Motor Show in Germany. With a global product line spanning Japanese and European platforms, Hualing is aiming to expand its presence worldwide.
Liu Hanru emphasized that Valin’s strategy is not about defeating competitors, but about capitalizing on their mistakes. He believes that persistence and focus in the heavy truck sector will give Hualing an edge when others fail.
During the “11th Five-Year Plan†period, the national auto industry policy encourages independent R&D, manufacturing, and service systems. Hualing aims to produce and sell 50,000 units, generating 15 billion yuan in revenue, and achieving a significant leap forward.
Key international partners include:
- **Mitsubishi Fuso**: A leading commercial vehicle manufacturer under DaimlerChrysler, known for its advanced truck and bus technology.
- **Cummins**: A world-renowned engine manufacturer, supplying high-performance engines for Hualing trucks.
- **ZF**: A German engineering giant with a long history, providing critical components like transmissions and suspensions.
Through these collaborations, Hualing is building a solid foundation for global expansion, aiming to become a respected name in the international truck market.
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