Hoyer Motors Asia Grows by 300%
With the opening of the subsidiary Hoyer Motors Asia, the Hoyer-group has been well established in China and the goal to have a branch in Asia which resembles the European business model to meet the demand from global companies with activities on both continents has been achieved.
The opening of a subsidiary in Ningbo, China, puts the Hoyer-group in the unique and favourable position of offering the same services as Hoyer in Europe. The China office offers the same product program within motors, carries a large stock, has a professional assembly shop, quality control and an effective complaint handling procedure.
The creation of Hoyer Motors Asia
The beginning of Hoyer Motors Asia goes back to the fall of 2007. The purpose to open a new subsidiary was to offer global customers with activities in both Europe and in Asia the exact same products, services and logistics solutions as Hoyer in Europe. In 2010 all details regarding the Chinese organization were in place – and things have gone very fast since then.
The sale of electric motors constitutes the primary marketing focus for Hoyer Motors Asia. The China office currently employs 24 Chinese employees, and according to Ketil Vesterlund, CEO, Hoyer Motors Asia, the branch has more than lived up to the objectives for the financial year which ended on April 30, 2011.
“This last year has been much better than expected. Our goal was to double our revenues compared to 2010, but fact is that the last financial year for which the accounts have been closed shows growth of no less than 300%.
“The reason for this extremely positive development is, among others, that an increasing number of European businesses are expanding their production in Asia. This means that day to day business and the actual delivery are carried out here in China while the cooperation agreements still take place between the parent companies in Europe. In addition, several large Asian-owned companies are becoming aware of Hoyer Motors Asia, which of course plays a significant role in the positive fiscal year results and our future growth plans,” stresses Mr Vesterlund.
According to the CEO, Hoyer Motors Asia has benefitted from the economic crisis, since more companies have checked up on their supplier’s situation and therefore have opened up for new agreements.
The creation of Hoyer Motors Asia is a part of an overall objective to make the Hoyer-group a global player. Being physically located with a subsidiary in China enables Hoyer to be close to the customers and thus being an attractive business partner for global companies with activities on both continents.
“Many companies chose to use agents and retailers in Asia, but instead we have gone all the way and created a subsidiary. The subsidiary not only allows us to have direct contact with customers, we can also react faster and consequently provide an optimal service,” says Mr Vesterlund.
Another important factor for Hoyer’s global customers is that the company can offer one business partner – regardless of which subsidiary, they are doing business with. The goal is to gather the threads and create a uniform service level in order to give global customers the same positive experience and the same opportunities when they do business with Hoyer in Europe and Asia.
“What differentiates Hoyer from other brands is that we offer the same standard and quality in all markets where we operate. Other suppliers of electric motors choose to adapt their products to the Chinese market for example, but it is important for us that our customers always get the same product regardless of which department they purchase it from,” finishes Mr Vesterlund.
The objective for the next year is to double the revenues which shall be achieved through new appointments, a doubling of the storage capacity in China and general efforts to create the structure and stability which characterize Hoyer in Europe and are the trademark of the company.