Mr. Sergey Mashnin, General Manager, Vartech Group Company, Kazakhstan informed that “VARTECH” corporate group was founded in January 2003. Mainly
the company was active in import of lighting equipment for Kazakhstan market. By 2012 a client base of about 2000 partners all over Kazakhstan was established. The company has a trade depot with large storage facilities and several freight vehicles used for deliveries.
In 2012 the executive management decided to expand its business. Thus apart from lighting equipment, the company is now also actively importing automobile tyres. For the realization of set goals two independent companies were founded: “VarTechElectro” and “VarTechAuto”.
At the beginning of 2013 “VarTechAuto” signed a distributor agreement with one of the China’s largest radial tyre manufacturers – Huanan. According to this agreement, “VarTechAuto” acquired exclusive rights of marketing WANLI brand tyres in Kazakhstan. “VarTechAuto” supplies the Kazakhstani market with tyres for passenger and freight vehicles as well as large-size tyres for special use vehicles.
Today, owing to vast experience in the field of business, having qualified specialists with knowledge of the Chinese and English languages and a wide database, “VarTech” companies are capable to also render consulting assistance, intermediary services as well as direct deliveries of any goods from Mainland China and Taiwan.
Sergey appreciated the efforts of CTF organizers who arranged this event, he said; “we are already doing tyre business with our supplier but this fair is a platform and Shandong is hub of tyre industry therefore we are here to see the trends and update about the industry.”
Mr. Ali Saleh Ali Al Suhaibi, Purchase Manager, Al Yazidi For Trading Est. from Jeddah, Kingdom of Saudi Arabia said; “we are doing tyre business already with three different brands in different categories Deestone, Mitas and Solideal for PCR, SUV, Off-road and Solid Rubber Tyres. I am here to visit China Rubber Tyre & Wheel Fair because here all Qingdao, Shandong based companies are available for every kind of tyre related products, and major Chinese brands. Some leading tyre manufacturers have established themselves as key players in Saudi Arabia tyre market.”
Ali Saleh informed that Saudi Arabia has one of the highest numbers of per capita vehicles, globally. In 2013, about 0.74 million units of commercial vehicles and passenger cars were sold in the Kingdom. Saudi Arabia hugely lacks in terms of vehicle production as only a handful automobile assembly units are located across the country. As a result, the entire domestic demand for automobiles as well as tyres is met solely through imports.
According to Saudi Arabia Tyre Market Forecast & Opportunities, 2019, the tyre market in Saudi Arabia is forecast to grow at a CAGR of around 17% till 2019. Increasing passenger car sales, expanding automobile fleet size, favorable government policies and significant foreign investments in the automotive sector are some of the key factors propelling tyre demand in Saudi Arabia. Due to extreme weather conditions, replacement period for tyres is relatively shorter, which is also a major reason for increasing replacement tyre sales in the Kingdom.
Passenger car tyre is the most dominating segment in the Saudi Arabia tyre market, followed by commercial vehicle tyre and other vehicle tyre segments. The Kingdom’s Western and Central regions, comprising Riyadh, Makkah and Madinah, collectively account for around 57% of the total tyre sales in Saudi Arabia. Besides major Chinese brands, some leading tyre manufacturers have established themselves as key players in the Saudi Arabia tyre market, Ali Saleh concluded.
Eng. Rafael Arambulet, Manager, Venchi Motors CA, from Barquisimeto city, Lara state, Venezuela in his remarks stated that M/s: Venchi Motors is a company dedicated to the wholesale distribution nationwide dealing in Brand products Venchi and others. “We are also dealing in spare parts and accessories for motorcycles and existing vehicles in the Venezuelan market, thus guaranteeing our customers a quality product and confidence at best standards of technology and worldwide low price.”
Rafael commented that this is a big Tyre fair in Qingdao. We are here to visit for looking PCR & TBR Tyres and Alloy Rims. Here we saw so many brands some already in our market but we are looking few other brands for competitive price and quality. You know here very large number of different tyre manufacturing and trading companies and brands are available. But being a company with social meaning, dedicated to the import of parts and accessories for vehicles and motorcycles that can market and distribute high quality products we have to fulfill the expectations of our customers and consumers.
Mr. Amit Khanna, Director, Hangzhou Suraki Trading Co., Ltd., disclosed that every year he visits this Rubber Tyre & Wheel Fair in Qingdao. “I am exporter of Chinese brand TBR & PCR tyres to India because of Chinese tyre prices. I live in Hangzhou, Zhejiang province but for this fair I come every year because this is better place for meeting with tyre suppliers. Their factories and offices are also located here in Qingdao and I visit them on this occasion.”
Stating about his Company he said; “this is a wholly foreign-owned enterprise founded in 2007 in Hangzhou. It is a well reputed buying agent and a professional foreign trade Company that provides buyers and importers with an end-to-end solution for exporting Textiles, Garments, Furnishings, Auto parts, Electronic products and other products from China. We have numbers of steady stock dealers and products providing markets in UK, USA, India, Pakistan, Dubai and other Middle East countries,” Amit added.
Mr. Anwar Mirza, Director, Jarral Motors, Luton, from United Kingdom stated that it was his first visit of this Rubber Tyre & Wheel Fair in Qingdao. “In this fair I have found some good brands and visited their factories in other districts of Shandong. We have planned to do business on long term basis. I am here not for once in life but we have to do it for regular export to our country and fulfill the demand of our customers on proper channel, we have already our sales network and online store in UK.
Mirza disclosed that he belongs to Gujranwala city of Pakistan, but was shifted to United Kingdom in 2002 due to law & order situation in the country. Replying to various questions he said; “we are budget tyres provider in UK, having 4 outlets on different places. We have very good opportunity through this Fair with respect to Budget tyres for our market.”
By introducing his Company, M/s: Jarral Motors, Anwar said it was established in 2012. It deals in new and part worn tyres, steel rims, alloys and spare parts. “We require EU Tyre Labeled brand. By defining the ‘EU Tyre Label’, Anwar said the Tyre Label is a mark for motor vehicle. Manufacturers of cars, light and heavy trucks must specify, wet grip and noise classification of every tyre sold in EU market starting from November 2012. For passenger car, light truck and truck tyres the information must be available in technical promotional literature, the manufacturers or importers have the choice of either putting a sticker on the tyre tread or a label accompanying each delivery of batch of tyres to the dealer and to the end consumer. The tyre label will use a classification from the best (green category “A”) to the worst performance (red category “G”).”
He further informed that mostly Chinese tyre export brands have ‘EU tyre label’. It’s quite easy for us to find any brand but it depends on the exporter who is already working there or not. In UK, there are so many Chinese tyre brands that are popular in budget tyre segment. We are already working in automobile business in UK; therefore, we know the UK market. Chinese brands have already taken place not in UK but other parts of the EU too.
The other visitors included Mr. Girish Berwani, Regatta Industries, Idumota, Lagos, Mr. Refaat Reyad, Said El Gazaar Foundation, Cairo, Egypt and Mr. Hassan Reza Habibi, General Manger, Tire & Flap Trading Co., Tehran, Iran.
-Published from pages#36-47 June-2015 edition of MOBILE WORLD Magazine