Chinese Brand Aims to Deliver ‘World-Class’ Quality

Q: What key factors set Shacman apart from its competitors?

A: Shacman is a Chinese company and the third-largest truck manufacturer worldwide. It has extensive experience and leads numerous international markets. We heavily focus on technological development, as our mission is to deliver cutting-edge technology. Instead of prioritizing price, our offering stands out for maximizing the overall value of the vehicle. We play a crucial role in setting new standards and regulations in the industry, positioning ourselves as a key player in its transformation.

Q: What are the highlights of Shacman's evolution in Mexico?

A: We arrived in the country to transform the sector by introducing high-quality vehicles at a highly competitive cost, accompanied by a comprehensive set of safety features. Furthermore, we have maintained a strong dedication to leading and pioneering in various areas, especially concerning natural gas. While we all recognize that electrification will ultimately be the future of transportation, in the case of heavy-duty transport, there is still a long way to go before it becomes a reality. This is where natural gas comes into play as a highly beneficial transitional technology. We are providing our customers with the opportunity to be more environmentally friendly while achieving significant savings, reducing costs by up to 40%.

This path to success has not been without challenges. Every attempt to introduce a new perspective has encountered resistance but we keep advancing steadily. 

Q: What are the primary barriers that are hindering the rapid adoption of this technology?

A: On the one hand, there is the reputation associated with being an Asian brand. Some Asian competitors have not left a good impression. On the other hand, when adopting natural gas, there is always a fear of the unknown when it comes to making changes. This is understandable as operating a natural gas truck is not the same as operating a diesel vehicle. It entails certain operational adjustments and not everyone is willing to make them. Fears include routes that lack natural gas fueling stations and concerns about technical breakdowns. However, these barriers are being broken down. As the infrastructure expands and evolves, the appetite for adopting these technologies will also increase. 

While some may perceive natural gas vehicles as slightly more expensive, our gas trucks cost about the same as traditional trucks. When factoring in fuel savings, it often balances out.

Q: What collaborative efforts can be forged between public and private entities to enhance the adoption of natural gas?

A: Introducing incentives would yield a substantial impact, not only within heavy industry but across the entire automotive sector. In numerous countries, electric vehicles enjoy exemptions from certain charges. For example, 50% of vehicles in Shanghai, China, are electric partly because these vehicles do not pay for license plate fees. This same principle can be applied in Mexico. Forging partnerships with the public sector represents the most promising path forward. 

Permits are also a challenge, especially concerning natural gas. Public intervention can play a pivotal role in addressing this issue. 

Q: How does Shacman deal with the prejudice that Chinese automakers sometimes attract?

A: Mexican transporters trust us due to their positive experiences. Our engines, for example, come from well-known brands, which instills peace of mind and confidence. We also established the "Shacman Warranty," which ensures that if a truck encounters issues, we take responsibility. This demands that we ensure everything works properly, which has helped us overcome various barriers, making us the fastest-growing brand in Mexico over the past year.

Our strategy is to offer world-class trucks at competitive prices, supported by a network of professionals. We will continue in this direction and keep introducing improvements. 

Q: How is your goal of producing 5,000 units in Mexico between 2020 and 2025 advancing? 

A: We have manufactured about 600 units in Mexico but we are undergoing a complete transformation. We are expanding our assembly facilities to make them larger and more efficient, with the goal of achieving a production capacity of between 2,000 and 2,500 trucks per year. As a result, our plan for the upcoming year is to produce around 1,500 units and to maintain that pace until 2025.

Q: What are the primary obstacles that the industry is encountering?

A: The Mexican government wants to reduce emissions by 2024 but the country lacks nationwide access to low-sulfur diesel. The government is also unable to supply this fuel. Stakeholders within the sector are making efforts to sustain operations despite these challenges. The shift toward cleaner and more efficient vehicles is positive; the obstacle lies in promoting a solution that remains unavailable. If a truck operates in an area without low-sulfur diesel, an alternative fuel must be used. 

Another pressing concern is the modernization of the fleet, with the average truck age being 18 years. This lack of competitiveness elevates operational expenses for companies, introducing a range of difficulties.

The third obstacle is the transition to clean energy sources. While there is willingness among stakeholders, the transition needs well-defined regulations, documented incentives and a sense of certainty throughout the process. A prevailing lack of confidence exists due to the recent turbulence in the energy sector, which led to substantial investment losses for many. It is imperative to establish clear and unambiguous guidelines. If a solid foundation is established, the private sector will likely be inclined to invest. 

Shacman, a Mexican subsidiary of China-based Shaanxi Automobile Holding Group, is a truck manufacturer present in over 100 countries. Through innovation and research, it is committed to achieving profitability for clients and transitioning to greener fuels.