Venezuela Gains Attention of China's Truck Corporations

Recently, great news was brought into China's truck industry: Venezuela's Minister of Ground Traffic Department Hyman Te Ludi said, with the approval of President Maduro, Venezuela was going to import 5000 heavy duty trucks from China. Some of them will be used in the newly established state-owned shipping company, others in some private companies in Venezuela.

Just like any other large orders, this 5000 order from Venezuela has attracted great attention from domestic truck enterprises.

More details needed for this project

"Of course we are interested in this order. No enterprise would ever reject an order like this." said Rui Fang, Head of CAMC Overseas Department. "However, for this project, we are still in the stage of information gathering. First of all, we have a specific number of purchases to be verified. Secondly, this project is now in the very early stage. All we know is that Venezuela has the intention to purchase a large amount of trucks from the Chinese market. This project will surely be carried out step by step. Thirdly, we haven't got the specifications."

Venezuela valued by many truck enterprises

In fact, it's not the first time that Venezuelan market has captured focus from Chinese truck enterprises.

In early 2010, Sinotruck Group and Venezuela's National Oil Company signed a contract of exporting 750 oil tank semi-trailer and 750 HOWO-A7 motor tractors. In May, the first 500 HOWO-A7 motor tractors were shipped from Qingdao Port. That is China's first export of large quantities of heavy duty trucks to Venezuela. In August 2012, Sinotruck exported 400 HOWO-A7 motor tractors to Venezuela, which became the second large scale exportation of heavy duty trucks. So far, over 1000 trucks in Venezuela came from Sinotruck.

Sinotruck is not the only corporation that has large exports to Venezuela. In June 2013, Anhui JAC exported to Venezuela 590 heavy duty trucks.

Venezuela, the focus of South Africa

Venezuela's market won the attention of China's truck corporations by its several features.

"Venezuela has a large demand for both vehicles and engineering machinery. If Venezuela buy products from other countries, it will not get support from China, which means its purchasing power will decline. This is because some of China's oil magnate get their crude oil from Venezuela, paying in U.S. dollars and some of the money can only been used in the purchase of China's product. This leads to the preference of Venezuela the purchase from China. Of course, there are also private projects in Venezuela but only a few as the local foreign exchange reserve is relatively small. As a result, the exportation is mainly through the government. As for related regulations, compared with many other countries, there are not many restrictions. After all, China has provided Venezuela with significant financial aid. Anyway, the development condition of the Venezuelan market is very favorable to China's enterprises. "Chen Wei told our reporter.

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