Chongqing - On June 13, the parking lot of Chongqing Jinguan Automobile Manufacture Co., Ltd. was packed with hundreds of modified vehicles, most destined for overseas markets. 

This scene is uncommon for a company that has primarily served the domestic market for 40 years. However, with a significant push towards international markets this year, orders have surged, turning the parking lot into a temporary storage area.

The assembly line of Chongqing Jinguan Automobile Manufacture Co., Ltd. is bustling with activity. (Photo/Jinguan Auto)

Serving worldwide customers 

Jinguan Auto, a high-tech enterprise based in Bishan, Chongqing, specializes in recreational vehicles (RVs), special-purpose vehicles, and other modified vehicles. As a leading player in China's modified car industry, the company produced and sold 2,000 vehicles in 2023, achieving a production value of over 500 million yuan (68.86 million U.S. dollars). 

For the first time, Jinguan Auto ventured into the overseas market this year, selling more than 300 modified vehicles from January to May, generating an export value of 11 million U.S. dollars, accounting for 30% of the company’s total output.

"Unlike complete vehicle manufacturing and sales, the modified car sector is a niche market," said Yi Hongbo, Executive Deputy General Manager of Jinguan Auto.

RV modification, which constitutes more than half of Jinguan Auto's production value, is in high demand overseas, especially for business RV modifications. This segment shows tremendous potential, prompting the company to target it as the main focus for its international expansion.

Jinguan Auto's confidence in entering the global market stems from its provincial-level enterprise technology center, comprehensive modification production and testing systems, 40 years of experience, and 102 effective patents. For years, the company has collaborated with major car manufacturers like Mercedes-Benz, Volkswagen, Ford, Iveco, and Jiangling Motors, gaining extensive experience in meeting automotive standards and authorized modifications. This foundation provides strong technical support and quality assurance for their overseas ventures.

From a profitability perspective, the overseas market is more lucrative. For example, the RV modified from an Iveco sells for over 400,000 yuan domestically but can fetch over 500,000 yuan abroad, a 30% increase. The higher profits offset the additional logistics and time costs.

Leveraging online platforms

Earlier this year, the company established an overseas market department, handling everything from product promotion and platform operations to vehicle export and after-sales service. Initially, the results were modest.

“It took nearly a month before we landed our first overseas customer, an individual from the United Arab Emirates,” recalled Zheng Hong, head of Jinguan Auto’s Asia regional market. This initial sale provided valuable insights into the overseas market, such as customer awareness channels, modification needs, and how to showcase products better and streamline sales channels.

By analyzing more overseas customer data, the team discovered that modification quality, presentation, and vehicle pricing are crucial factors for their target audience. Customized business RVs, in particular, are highly popular. “Most customers focus on interior and exterior modifications to enhance sportiness, comfort, and luxury,” Zheng said.

Jinguan Auto quickly leveraged online platforms to communicate with overseas customers, allowing them to understand the company's offerings through live broadcasts, videos, and personalized consultations. This approach directly showcased the production process, modification quality, functionality, and aesthetics to customers. The company also sought local partners to establish sales terminals, propelling its overseas business into high gear within a month.

Projected overseas market value to reach 200 million yuan

During the May Day and Dragon Boat Festival holidays, the factory fulfilled overseas orders. “Customization cannot be standardized or mass-produced. Over 40 workers are involved in more than 20 processes, taking about a month to produce a modified vehicle,” Yi explained. Overseas orders take approximately two months from customer order to delivery.

Yi noted that, based on market responses from the past six months, participating countries of the Belt and Road Initiative are the most concentrated areas for overseas customers, with business RVs priced at around 200,000 yuan being the most popular. Central Asian markets account for nearly 80% of all overseas orders. Other significant markets include the Middle East, Southeast Asia, Africa, and South America. Logistics mainly involve road transport from Khorgos to Central Asia, road-sea intermodal transport from Guangzhou to Southeast Asia, and river-sea intermodal transport from Shanghai to South America.

Jinguan Auto aims to sell 800 modified vehicles to the overseas market this year, achieving an export value of 200 million yuan, contributing to an overall annual production value of 700 million yuan.

(Liu Hanshu, the Chinese reporter from Chongqing Daily, also contributed to this article.)