XCMG chairman on the OEM’s strategy for rental

XCMG’s chairman Yang Dongsheng said the manufacturer would take a pragmatic approach to targeting the equipment rental sector in worldwide markets.

Speaking to KHL Group, Mr Yang said in more mature rental markets like the US, it will seek to partner with “top tier, professional rental companies”.

He acknowledged that major western OEMs have strong and stable dealer networks in the US, many of whom are also engaged in rental, and that was not possible for XCMG to replicate that model quickly.

XCMG chairman Mr. Yang Dongsheng (Image: KHL Group)

Instead, XCMG will take a step-by-step approach to developing its own dealer network and try to sell to established major rental businesses.

In other emerging markets, he said the company would take a different approach.

“XCMG and the other Chinese brands already have a good influence and contacts among the customers”, said Mr Yang, speaking to KHL through an interpreter.

“So, that advantage means we can grow and cultivate our own strategic partners.

“Therefore, we need to select [the right model] based on different countries, different markets, and different situations.”