Jiangxi, PR China

International Masters in International Business (IMIB)School of International Trade & Economics (SITE)

Presentation on:

Suggestions for JMC (Jiangling Motors Corporation Limited): How to expand their business in Bangladesh.

Course Name:

International Business Negotiation

(Conflict and Management)

Presented by:

1. Mohammad Ijaz Khan (Pakistan) 31540045

2. Saeed Ullah (Bangladesh) 31540046

3. Md Ameer Hossen (Bangladesh) 31540049

4. Mohammad Tawhidur Rahman (Bangladesh) 31540051

5. Jamshed Alam (Bangladesh) 31540057

Presented to:

Prof. ZHANG Xifeng

About JMCAbout JMCJiangling Motors Corporation Limited (JMC) was set up in 1968 based on the former Jiangxi Motors Manufacturing Plant. JMC Group has grown up through foreign cooperation & development over 20 years, and now JMC Group is one of the 510 Major Groups supported by the Chinese State Government.

JMC is one of the biggest companies in China commercial vehicle industry and one of the top 100 listed companies for consecutive eight years. JMC whole vehicle sales volume reached 200,000 units in 2012. The main products are Double cabin pickup and Mini trucks.

Rangs Group introducedRangs Group introducedJMC in BangladeshJMC in Bangladesh

JMC’s entry in BangladeshJMC’s entry in Bangladesh

Rangs Group is a diversified  and growing Group of Companies representing Global brands in Bangladesh. It has started its journey as a single business unit in 1979 and now has grown successfully in multiple sectors.

Rancon Automobiles Limited is one of the business wings of Rangs Group. It is the importer of various types of commercial vehicles in Bangladesh. Currently they are the sole distributor of the few Asian automobile brands including JMC.

Within last few years JMC spread their market well but still they are far behind of the other competitor like TATA, Eicher, Foton, Runner, JAC and so on.

JMC advertisingJMC advertisingPaper ad of JMC mini truck & Double cabin pickup by Rancon automobiles.

JMC’s market share in BangladeshJMC’s market share in Bangladesh

Brand Country of origin Market share

TATA India 29.8%

Eicher India 12.3%

Runner India 9.5%

Toyota Japan 9.2%

Mitsubisi Japan 8.9%

JAC China 7.4%

Foton China 6.7%

JMC China 5.8%

Others ---- 10.4%

Market share of few mini truck & commercial vehicles:

JMC’s competitor brand in BangladeshJMC’s competitor brand in Bangladesh

The Main and nearest competitor brands of JMC’s are Foton and JAC; both are from China.

There are few other Indian vehicle companies doing good business also.

However TATA, an Indian company holds the largest market share in Bangladesh.

The first target for JMC is to cross Foton and JAC. But their ultimate goal is to gain huge market share like TATA.

Challenges for JMC in BangladeshChallenges for JMC in Bangladesh

1. JMC has only 2 types of vehicles and their uses are limited. But other competitors like TATA provide multi purpose and different types of vehicles.

2. JMC has sole distributor but there is no franchisee or JV in Bangladesh as the other competitors have.

3. Lack of aggressive advertisement or promotional.

4. Shortage of service center and spare parts.

5. Lack of trust about the label “Made in China”

Future business scope in BangladeshFuture business scope in BangladeshBangladesh aspires to be a middle-income country by 2021. However, growing bilateral ties between neighboring China and India has brought with it investments into the country’s infrastructure industry for One belt-One road and Transit in south Asian countries..

Bangladesh has maintained an impressive track record on growth and development. The economy has grown more then 6% per year and expected to increase by 7~8%

Currently Bangladesh government focuses on the development of its communication and infrastructure. The largest project Padma Bridge is under construction, expected to be completed by 2018. This will increase connectivity and boost the business opportunity with the southern part of Bangladesh.

So the future business in Bangladesh will require more commercial vehicles.

Suggestions to expand JMC’s Suggestions to expand JMC’s business in Bangladeshbusiness in Bangladesh

1. Different types or Multi-purpose vehicles should be introduced to fulfill customers demand.

2. JMC should go through a strong franchisee or their own branch.

3. Need to increase distribution channels and service centers.

4. Should implement customer oriented advertising or promotional activities.

5. To gain public trust about “Made in China” & change the psychology of the people of Bangladesh.