FAW Jiefang Automotive Co., Ltd. Wuxi Diesel Engine Works (FAWDE), one of oldest diesel engine manufacturers in China, has been selected as one of designated suppliers of generator units for TELKOMSEL, the largest mobile telecommunications carrier in Indonesia. FAWDE outrivaled a number of established counterparts thanks to joint marketing and promotional efforts with its distributors. The Indonesian office of leading Danish water pump maker Grundfos has already started commercial deployment of FAWDE’s water pump power assembly. An executive at the office said that power assembly products used in water pumps require high quality and in-time services and that FAWDE had proved its reputation in both automotive engines and off-road products for years in the Indonesian market. These two factors led to the decision to select FAWDE as the sole Chinese power assembly supplier for Grundfos’ operations in Indonesia.
FAWDE launched several targeted marketing campaigns after conducting an in-depth study of the Indonesian market, identifying specific market segments and visiting potential users of its products. Sales volume of generator units in Indonesia reached 8,765 units in the first eleven months of 2016 and, of those, FAWDE sold 1,345 of the units, giving the firm a 16 per cent share in the market and outperforming Japanese competitors.
Driving sales with services has been FAWDE’s goal. Currently, FAWDE has 13 service stations across Indonesia’s main islands. When a customer needs a service call, the nearest service station completes the call within six hours. FAWDE requires all service staff to master professional service skills before going out on service calls. In order to ensure service capabilities, every six months, the company runs a training, with required attendance by all service staff, where they are brought up to date on the company’s full range of products.
FAWDE established its Indonesian office in 2013. The country has since become a key strategic market for the company in Southeast Asia. FAWDE has sold more than 8,000 generating sets in the country, taking a major share in the market. As China’s “One-Belt, One Road” initiative to strengthen economic ties with the countries along the ancient Silk Road trade routes gains momentum, investment by Chinese companies in the Indonesian market has increased sharply, especially in the construction of nickel mines and infrastructure. In the middle of October 2015, China won the contract to build the high-speed railway from Jakarta to Bandung, marking another milestone in the expansion of China’s manufacturing sector and of China-made equipment being exported into foreign markets.
FAWDE’s Indonesian office has developed tailored marketing strategies for both its complete vehicles and its single units. The company plans to continue providing high-quality products, services and support in Indonesia, in an effort to further promote Chinese brands and premium power units in the market.