I. Qualification Criteria
What are the qualification criteria? Based on practical standards for regional distributorships, the criteria are evaluated across six areas: Registration—legally registered enterprise with import/export qualifications; Market—capability to develop sales networks or channels in the target market;
Finance—sound financial indicators (e.g., cash flow, net assets, debt-to-asset ratio) and no significant credit risk; Service—possession of technical service and after-sales support teams, as well as equipment warehousing and logistics capabilities; Experience—sufficient industry experience and a core team with a professional background (including an established customer base or industry resources, and the ability to provide a clear business plan for market expansion); and Industry—experience in product sales within relevant sectors (such as shipbuilding, chemicals, power/energy, petrochemicals, or steel) and experience in establishing and managing sales channels (along with full recognition of TEMAC and KWO products and market management policies, plus a strong willingness to cooperate). In summary, the six criteria are: legal registration, channel capability, financial health, technical service, industry experience, and alignment of business philosophy.
II.
Capability Thresholds
What are the capability thresholds?
Regarding the practical criteria for agency capability, the thresholds are defined as follows: **Ranking**—Must be a leading enterprise ranked in the top five locally for the rental market of specific product segments (XCMG Yizu); **Capital**—Registered capital of ≥5 million RMB (XCMG Yizu); **Experience**—Over 5 years of industry experience, based on actual operational history rather than just the date of business registration (XCMG Yizu); **Facilities**—Operational premises must include independent office space and facilities for warehousing and logistics (XCMG Yizu); **Personnel**—A total of at least 20 key management and sales/business staff members (XCMG Yizu); **Finance**—Financial status must demonstrate sufficient working capital for operations and good credit standing (XCMG Yizu). Summary of the six thresholds: top-five industry ranking, registered capital, 5 years of experience, operational facilities, a 20-person team, and working capital. The six criteria are clearly defined.
III.
Application Process
What does the application process entail?
Based on regional agency application practices, the process is structured as follows: **Submission**—Submit a franchise/agency application (prospective agents can first make inquiries via the official website or hotline before submitting the application form; Dongtai); **Review**—The company reviews qualifications; for qualified candidates, both parties engage in in-depth discussions regarding cooperation details—such as agency territory rights and obligations—and sign a formal contract upon reaching an agreement (Dongtai); **Pre-assessment**—Submit an expression of interest along with the company profile and track record (regional managers conduct a preliminary assessment of local market capacity and business qualifications; this is a mutual due diligence phase, weeks 1–2; Rippa); **Visit**—In-depth dialogue and factory tour (we strongly invite you to visit our intelligent manufacturing plant; weeks 3–4; Rippa); **On-site Inspection**—Regional channel managers conduct an on-site inspection of the applicant and reach agreements on promotion and committed sales/payment targets (both parties sign a sales service and authorized distributorship agreement, subject to approval by the headquarters’ channel management department; Gaoyuan Shidai); **Authorization**—Preliminary review of the prospective distributor partner; the assessment period is typically one year, followed by a final review and formal authorization (NSK). Summary of the six process steps: application submission, qualification review, regional negotiation, factory tour, on-site inspection, and authorization following an assessment period. The six-step process is streamlined and efficient.
IV. Training and Performance Assessment
What does the training and assessment entail?
Based on actual practices, the assessment covers the following: Training—Distributors must complete two training modules: sales training (2–3 days covering product specifications, competitive positioning, value-based sales, accessory recommendations, and application guidance) and technical training (2–3 days covering hydraulics, electrical systems, engine diagnostics, and troubleshooting); Regular Meetings—Regional distributors must periodically visit MOTEC headquarters for product and technical training; Exhibitions—Regional distributors must participate in local industry trade shows annually, with MOTEC providing partial support regarding exhibits and personnel; Reporting—Regional distributors must report relevant market information and key account details to MOTEC through various channels; Exclusivity—Only one distributor is appointed per region, and each distributor handles only one MOTEC product series; cross-regional sales are prohibited (distributors must meet annual purchasing quotas agreed upon by both parties); Assessment—Authorization will be revoked if performance targets are missed for two consecutive years or if the three-year cumulative growth rate falls below 30%. In summary, the training and assessment framework comprises six key elements: dual sales and technical training modules, periodic headquarters training, industry exhibitions, market reporting, regional exclusivity, and performance-based authorization reviews.
V.
Support Policies
What do the support policies entail?
Regarding the practical application of distributor support policies, the support can be viewed across six key areas: **Bonuses** (incentives for meeting annual purchase quotas, with a 1% bonus on the total annual purchase amount—plus an additional 1% on any amount exceeding the quota); **Advertising** (subsidies covering 50% of costs for company-approved advertising at the prefecture and county/city levels, up to a limit of 1% of the annual purchase amount); **Training** (comprehensive two-way training: distributors may send staff to the manufacturer for product and sales training, while the manufacturer also sends personnel to the distributor’s location for enhanced training and support); **Protection** (strict regional protection policies to control territories and prevent disorderly competition, alongside guarantees for product quality—returns, replacements, and repairs—and the establishment of local after-sales service networks for timely supply and restocking); **Support** (product supply featuring automation equipment with continuous upgrades and iterations; professional technical and sales training; sharing of successful case studies and provision of promotional materials for marketing); and **System** (brand advantages, authorized dealership system, comprehensive product lines for one-stop purchasing, and annual incentives for top distributors, supported by systematic training—online product sessions and offline service capability workshops—as well as regular channel manager visits for market guidance and promotional materials). In summary, the support framework covers these six aspects: annual bonuses, advertising subsidies, two-way training, regional protection, continuous product iteration, and channel visits.
Conclusion
How does one apply for a regional distributorship for non-standard assembly lines?
The answer lies in a five-dimensional standard: qualification criteria, capability thresholds, application procedures, training and assessment, and support policies.
**Requirements:** Legally registered enterprise with import/export qualifications; existing sales networks or channel development capabilities in the target market; sound financial standing (healthy cash flow, net assets, and debt-to-asset ratios) with no major credit risks; possession of technical service/after-sales support teams and capabilities for equipment warehousing and logistics; a core team with sufficient industry experience and professional backgrounds (including a stable client base or industry resources, and the ability to provide a clear business plan for market expansion); and experience in sales within the relevant industry and in establishing/managing sales channels, alongside full alignment with the company’s products and management policies. **Thresholds:** A leading player in the specific product rental market (ranking within the top five in the local city); registered capital of ≥5 million RMB; over 5 years of operational history; independent business premises and warehousing/logistics facilities; a combined total of ≥20 key management and sales personnel; and sufficient working capital and good credit standing. **Process:** Submit a franchise application (after initial inquiry via the official website or hotline); company reviews qualifications followed by in-depth discussions on cooperation details (rights and obligations regarding the agency territory) and signing of the formal contract; submission of an expression of interest, company profile, and track record for preliminary review by the regional manager (mutual due diligence during weeks 1–2); in-depth dialogue and factory visit (weeks 3–4); on-site inspection by the regional channel manager, agreement on promotion and sales revenue targets, and signing of the authorized distributorship agreement.
The process involves headquarters approval and a preliminary review of the candidate dealer, followed by a typical one-year trial period before final authorization is granted. Training requirements include 2–3 days of sales training (covering product specifications, competitive positioning, value-based selling, and accessory recommendations) and 2–3 days of technical training (hydraulics, electrical systems, engines, diagnostics, and troubleshooting); dealers must also attend periodic product and technical training at headquarters and participate in local industry exhibitions annually (with the manufacturer providing exhibits and personnel support). Operational rules mandate market information reporting and key account registration; exclusivity is strictly enforced (one agent per region, one series per agent, and a ban on cross-regional sales), and authorization is revoked if performance targets are missed for two consecutive years or if the three-year total growth rate falls below 30%. Support measures include a 1% annual bonus on the agreed purchase volume (with an additional 1% on the excess amount), a 50% cost subsidy for approved advertising at the prefecture or county/city level, and two-way training (dealers send staff to the factory for sales and technical training, while the factory sends staff to the local area for initial training and support). Strict regional protection prevents disorderly competition, and the system guarantees returns, exchanges, and repairs, alongside the establishment of after-sales service networks in prefecture-level cities and timely product supply, restocking, and exchange services. Continuous product upgrades are accompanied by professional technical and sales training, the sharing of success cases, and the provision of promotional materials.
The authorized dealership system offers one-stop procurement, annual performance incentives, and regular guidance visits from channel managers.
In short, the regional agency model boils down to this: complete qualifications, sufficient operational strength, a completed procedural workflow, and successful performance evaluation—pass these four hurdles, and the agency business is secure.
