Forging ahead丨TIM group joins hands with overseas financing to develop a new sales model
In recent years, in the face of the continuous acceptance and gradual recognition of Chinese heavy truck brands by overseas customers, the scale of its overseas sales has continued to expand, but the contradiction between the expansion of sales volume and capital occupation has become increasingly apparent. The high interest rates of overseas banks and the complicated procedures have made it difficult for overseas customers to expand their purchases. At this time, the sales model actively developed by TIM Group in cooperation with financial leasing companies is undoubtedly the best supplement.
In the passenger car and commercial vehicle sectors in Indonesia, the instalment purchase model prevails. For TIM Motors Indonesia, which has just entered the Indonesian market in 2019, direct instalment to customers will cause two major problems: one is the huge occupation of funds in the early stage, and the second is the increase in the risk of later collection.
In order to solve this pain point in sales, Ms.Lily, vice president of TIM International Group, went to Jakarta in August 2019, visited a number of local financing companies, reached preliminary cooperation intentions, and signed cooperation agreements and repurchase agreements.
In the second half of 2019, the business personnel of the Indonesian company successively developed the Kalimantan equipment rental company (dump truck) and the Jakarta mixing plant customer (mixer truck). These two customers all plan to expand production in 2020 and are willing to raise funds through financing companies. The client's company documents and financial statements were approved by the two financing companies and sufficient quotas were obtained.
In 2020, the sudden Covid-19 epidemic swept the world, and investment and engineering construction in Indonesia have stagnated. The previous expansion plans of potential customers have also been shelved, and financing companies have been more cautious and strict in approving customers, leading to the shelving of orders that have already been completed through financing companies. In the face of various unfavorable factors, the Indonesian business team firmly grasped the needs of customers, did not get discouraged or gave up, always maintained close communication with financing companies, and at the same time increased market development efforts.
In the second half of 2020, the Indonesian company reached a business cooperation with a logistics company in Jakarta. In early 2021, a batch of tractors were successfully delivered to customers, and at the same time, the customer company documents and delivery-related documents were submitted to the financing company. The financing application was approved at the end of March, and the financing company made a one-off payment to 70% of the balance of our Indonesian company. For the first time, our company has opened up the sales model of realizing long-term credit sales to customers through financial leasing companies,It is of great significance to our TIM Group's future development in the Indonesian commercial vehicle market.
At the same time, part of Sulawesi's dump truck financing application was also successfully approved. At the end of March, the vehicle had departed from Kendari to the customer project site, and 70% of the payment from the financing company could be received in early April. The follow-up purchase requirement of this customer is currently being approved by another financing company.
The main difficulty encountered when Chinese heavy trucks are sold in Indonesia is that the recognition of Chinese brand vehicles and machinery in Indonesia is still being cultivated, and it is difficult to get support from local financing companies. The main reason is that the long-term preconceived notion has weak acceptance of Chinese brands; Second, the lack of after-sales service and spare parts supply capabilities of many Chinese brands in Indonesia has brought concerns to customers. However, we are not discouraged over the difficulties, but to face the difficulties, overcome the difficulties, and give full play to the advantages. TIM Indonesia can provide both parts and maintenance support, which greatly solves the worries of customers buying cars. Our advantages and corperate integrity make it possible to reached cooperation with the local financial leasing company which achieves a breakthrough in the business model for our company. Under the current economic situation, it not only reduces the company’s financial pressure, minimizes the collection risk and other uncontrollable factors, and at the same time To a certain extent, it has revitalized Indonesia's sales model, which is of great significance to the subsequent business expansion.
Vice President Lily
Financing company visit
Before Chinese New Year
A batch of tractors were successfully delivered to customers
With the success of this financial leasing model in Indonesia, our group will also continue to increase the development of this model in other subsidiaries such as Zambia, Tanzania and Nigeria, develop smart transportation and commercial vehicle services in Africa and Southeast Asia, and join hands with Chinese heavy trucks to create New brilliance in overseas markets.
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