This city has made the greatest contribution, and China has become the top exporter of automobiles

Not long ago, at the Munich Auto Show, China sent nearly 20 companies to participate, becoming the country with the highest number of exhibitors besides the host Germany.

In the first half of this year, China surpassed Japan to become the world's largest automobile exporter, and the proportion of automobile exports to Europe to China's total vehicle exports increased from 5.7% in 2018 to 39.1%.

What is the level of competitiveness of Chinese cars globally in terms of exports? What countries have been the most exported to? Will the anti subsidy policies of some countries affect the future of China's electric vehicle industry?

Top exporter of automobiles

In the first eight months of this year, China's automobile exports reached 2.941 million units, a year-on-year increase of 61.9%. Among them, passenger car exports reached 2.455 million units, a year-on-year increase of 69.8%; The export of commercial vehicles reached 486000 units, a year-on-year increase of 31.1%.

China has consistently ranked first in global automobile production and sales for 14 consecutive years.

But the takeoff of export volume only began after 2020.

Since 2012, China's automobile exports have exceeded 1 million units for the first time and have been hovering around 1 million units for nearly 7 years.

In 2021, China's automobile exports exceeded 2 million units for the first time, reaching 2.015 million units, surpassing South Korea to become the world's third largest. In 2022, exports reached 3.11 million vehicles, surpassing Germany to become the world's second largest.

In 2012, Japan exported 3.7869 million more cars than China.

In the first half of 2023, the total export volume of Chinese automobiles was 2.341 million units, ranking first in the world with a year-on-year growth rate of 76.9%. The export volume of Japanese cars during the same period was 2.02 million, a year-on-year increase of 17%.

In recent years, Germany and Japan have failed to keep up with the transformation of industries dominated by new energy in a timely manner, resulting in a decline in automobile exports instead of an increase, further promoting China to become the largest exporter of automobiles.

New energy vehicles drive a surge in the European market

Overall, the export volume of new energy vehicles in China in the first eight months has increased to 25% of the overall export volume, an increase of 10 percentage points from 2021, with an increase of 111.3% in export volume, far higher than traditional fuel vehicles, and has become an important engine driving exports in key markets.

According to data from the General Administration of Customs, as of July this year, among the top ten countries in China's automobile exports, Russia, Mexico, Saudi Arabia, and the United Arab Emirates mainly rely on gasoline vehicles. In European countries represented by Belgium, the United Kingdom, Spain, and Southeast Asian countries such as Thailand and the Philippines, new energy vehicles have already taken the leading position in exports.

In terms of exchanges, China's exports of new energy vehicles rely heavily on Asia. Before 2020, China's total vehicle exports to Asia accounted for about 90%. With various reasons, the prices of traditional energy in Europe have risen, and the "good quality and affordable price" of Chinese car companies quickly attracted the attention of the European market.

In 2020, China's exports of new energy vehicles to Europe reached 70000 units, accounting for 33% of the total. In 2021, the proportion reached 48%, making it the largest region for China's new energy vehicle exports. In 2022, the export volume of new energy vehicles to Europe exceeded 500000 units, accounting for nearly half of the total.

SAIC has the highest contribution and BYD has the fastest growth rate

According to data from the China Association of Automobile Manufacturers, as of August 2023, SAIC has made the highest contribution to vehicle exports, reaching 667000 vehicles; In terms of growth rate, China's independently developed automotive brands have strong momentum: BYD exports 125000 vehicles, a year-on-year increase of 6.5 times; Chery exported 558000 vehicles, a year-on-year increase of 1.2 times; The Great Wall exported 182000 vehicles, a year-on-year increase of 95.5%.

In terms of regional significance, Shanghai has a significant impact on China's automobile exports. In 2021, Shanghai accounted for 23% of China's automobile exports, and in 2022, it rose to 24%. This is because Shanghai has two heavyweight car companies, SAIC and Tesla, with strong export performance. In the first three quarters of 2023, Shanghai's export volume accounted for 20.3%.

Anhui's exports are also relatively strong, thanks to the contribution of its local car company Chery.

Chinese independent brands face obstacles and have a long way to go

The EU initiated anti subsidy investigation has raised concerns about the future of China's exports of new energy vehicles.

However, upon closer examination, it can be seen that the impact is not significant.

According to relevant regulations, the anti subsidy investigation mainly targets brands produced in China and imported into Europe, and the earliest date can be traced back five years, which is 2018.

China's subsidies for new energy vehicles have been declining since 2018. In 2019, the maximum subsidy amount was reduced from 50000 yuan to 25000 yuan, and the subsidy threshold was raised to over 250 kilometers. This year, the subsidy policy has been completely cancelled.

Moreover, China's main export vehicles to the European market, such as SAIC MG and Smart, are European background brands that are less affected by subsidies. They also have a strong consumer base and sales network in the local area, so the impact of the survey will be relatively small.

But established car manufacturing countries such as Germany have realized the "threat" from Chinese car companies. The German financial group Allianz Group recently released a report stating that if no action is taken, European car companies will lose 7 billion euros in profits every year by 2030.

In this sense, it cannot be ruled out that Chinese independent brands will face more policy protection and stronger competitors when going abroad in the future.

The overall competitiveness of China's new energy vehicles is attributed to a complete industrial chain system and multiple important technological breakthroughs, which have controlled costs to a lower range. Relevant data shows that the production cost of China's new energy vehicles is even about 15% lower than Tesla's.

Although China's total automobile exports are huge, the market share in most single markets is not significant, and there are many brands. It is still difficult for a single brand to compete with traditional large manufacturers. The policies, investment environment, and ever-changing geopolitical disputes of different countries may be potential stumbling blocks for Chinese automobile companies.

Taking the European market as an example, in 2022, China's export of new energy vehicles to Europe reached 300000 units, while the overall sales of new energy vehicles in Europe during the same period were 2.52 million units. Although China has a 12% market share, the proportion of each independent brand is still relatively small.

Therefore, Chinese car companies still need to hone their internal skills, adhere to long-term principles, and enter a new stage of globalization and large-scale development.