Changing lanes and overtaking+ecological sailing: China's new energy vehicles are favored by overseas markets. Automobile | Market

According to data released by the China Association of Automobile Manufacturers on the 10th, China's automobile exports reached a historic high from January to July. New energy vehicles continue to perform well, with a steady increase in market share.

The data shows that from January to July, the export of automobiles reached 2.533 million units, a year-on-year increase of 67.9%, reaching a historic high. Among them, the growth rate of new energy vehicle exports exceeded that of traditional fuel vehicles. From January to July, the export of new energy vehicles increased by more than 1.5 times.

Chen Shihua, Deputy Secretary General of the China Association of Automobile Manufacturers: China's new energy vehicle industry has a leading advantage, a relatively complete and stable industrial chain, and products have strong competitiveness. This year, we expect the export of automobiles to exceed 4 million units, with new energy vehicles steadily exceeding 1 million units.

The export growth rate of electric passenger vehicles is significant

Since the beginning of this year, China's foreign trade has shown impressive performance in the "new three types". The new three types here refer to electric passenger vehicles, lithium batteries, and solar cells.

The latest data from the China Association of Automobile Manufacturers shows that electric vehicles, which account for the vast majority of new energy vehicles, have become a strong driving force for the surge in automobile exports.

Since the beginning of this year, the average monthly export volume of electric vehicles at Shanghai Haitong Port has remained above a thousand. The latest data from SAIC Group shows that from January to July this year, SAIC's overseas market sold 172000 new energy vehicles, a year-on-year increase of 214.9%. Not only that, in mid March, the international self operated route from Ningde to Mexico set sail at Ningde Port in Fujian, with the first batch of thousands of new cars heading towards Mexico. According to statistics, in the first half of this year, the growth rate of electric passenger vehicles exported by Fujian Province was significant, with a year-on-year increase of 195.5%, and exports amounted to 1.27 billion yuan.

Huang Mingjuan, Director of the Statistics and Analysis Department of Fuzhou Customs: The export of electric passenger vehicles in Fujian Province has significantly increased. One reason is the market demand, which continues to expand for new energy and green energy. The second aspect is that our industrial and supply chains have also greatly improved.

In the Taicang Port area of Suzhou Port, Jiangsu Province, since the opening of China's new energy vehicle export special service in mid July, the area has been very busy. Recently, the first special cargo ship loaded 2797 new energy vehicles to South America. According to statistics, Taicang Port Area completed the export of 172000 vehicles in the first half of this year, a year-on-year increase of 11.3 times, of which 90000 new energy vehicles were exported, accounting for 52.3%.

The reporter noticed that while the number of electric vehicle exports continues to increase, the prices of exports to overseas are also impressive. In Nanning, Guangxi, a new energy vehicle factory produced 50000 vehicles last year, of which 5000 were exported to Thailand. The average selling price per vehicle was 130000 yuan, which is much higher than the domestic price of 70000 yuan. The latest data from the China Machinery Industry Federation shows that in the first half of this year, the export value of electric passenger vehicles, one of the "new three types" driving the growth of national foreign trade, increased by 163.8% year-on-year.

Europe is becoming a major incremental market for China's automobile exports

What are the advantages of electric vehicles produced in China? Why is it favored by overseas markets?

During this period, Tian Marco, the head of the Finnish Business Promotion Agency's Greater China region, has been very concerned about electric vehicles produced in China. He told reporters that Finland's goal is to achieve carbon neutrality by 2035. Currently, carbon dioxide emissions in Finland's transportation sector account for 20% of the total emissions, of which 50% come from private cars. They plan to have 25% of new cars being pure electric or natural gas by the end of 2025. Tian Marco said that pure electric vehicles produced in China have technological advantages, and he is full of expectations for Chinese electric vehicles entering the Finnish market.

Tian Marco, the head of the Greater China region of the Finnish Business Promotion Agency: I have no doubt about the market prospects of China's new energy vehicles in Europe. It is expected that by 2025, China's electric vehicle exports will account for 15% of the European market share.

The "lane changing overtaking" of Chinese new energy vehicles has given Chinese car companies the opportunity to enter traditional car companies like Germany. Europe is becoming a major incremental market for China's automobile exports, with new energy vehicles contributing significantly to the growth. The person in charge of Great Wall Motors' European business told reporters that Europe is a relatively traditional automotive market, with local automotive brands occupying a large market share. However, this trend is changing, especially for electric vehicles, where people are more accepting of brands and may even lean towards Chinese brands.

Stephen Coster, Chief Business Officer of Great Wall Motors Europe: In the first four months of 2023, Chinese electric vehicle brands have increased their market share in Europe to 7.3%. China is a pioneer in electrification in the automotive industry, and many new energy vehicles compete with international brands in terms of range, performance, and safety. In terms of digitalization, comfort, and other aspects, Chinese cars have caught up with European brands.

In order to better promote China's new energy vehicles to overseas markets, the China Academy of Automotive Engineering and other institutions have recently invited counselors from embassies around the world to visit outstanding enterprises in China's new energy vehicle industry, engage in in-depth exchanges in scientific research, production, and sales, and further build a bridge for China's automotive industry to go global.

Liu Ming, Director of the Political Research Consulting Center of China Academy of Automotive Engineering: Our target market is more diversified, moving from Southeast Asia, the Middle East, South America and other markets to European and American markets. In 2022, more than a quarter of the automotive market exports entered Europe, with Belgium, the United Kingdom, Australia, Spain and other important target markets.

Industry insiders say that the reason why Chinese new energy vehicle brands are popular in the global market is composed of multiple factors, including technological innovation, price competitiveness, as well as support from the Chinese government and growing global market demand.

Building a world-class automotive enterprise with Chinese brands has become an industry consensus

The reporter learned in the interview that while China's export scale of new energy vehicles is constantly increasing, it is currently becoming a consensus in the industry to build world-class car companies with independent brands.

On August 9th, at BYD headquarters in Shenzhen, the production of BYD's 5th millionth car was launched. BYD stated that they are the world's first car company to achieve this milestone, and next, they will work together with peers to create a world-class automotive brand.

Li Yunfei, General Manager of BYD Brand and Public Relations: We believe that overseas, every enterprise not only represents itself, but also represents China's business card.

Not only BYD, but also Great Wall Motors stated that new energy vehicles are becoming an important driving force to support their export of new energy. In the first seven months of this year, the market penetration rate of new energy reached over 30% among the 150000 vehicle exports.

Shi Qingke, the overseas business manager of Great Wall Motors: In the automotive markets of Latin America and ASEAN, we deeply practice "ecological going global", actively layout the entire industry chain, and create a new energy vehicle ecosystem that covers consumers from intelligent products, charging services to lifestyles.

In the interview, the reporter noticed that going abroad is a necessary path for the development of China's automotive industry. After experiencing early trade exports, establishing dealer models for independent brands for exports, it has now developed to establishing assembly businesses overseas and directly investing in factories. After more than 20 years of overseas development, Chinese car companies have achieved an ecological outbound layout of the entire industry chain, including technology, brand, and capital, becoming a new model for Chinese manufacturing to go global.

Industry insiders: Seize the important window of internationalization for Chinese car companies

Industry insiders say that the internationalization development of Chinese automotive companies has ushered in a bright prospect, and the current important window period for Chinese cars to go global should be seized.

Industry insiders suggest that in order to achieve global development of the industrial chain, car companies should prioritize both traditional and new markets. We should not only focus on traditional incremental markets such as Southeast Asia and Latin America, but also actively explore markets in developed countries.

Liu Ming, Director of the Political Research and Consulting Center of the China Academy of Automotive Engineering, said: We should not only pay attention to relevant countries and regions' carbon tariffs, anti-dumping policies, and other policies, take corresponding measures in advance, but also actively establish a policy, regulation, and standard library for the service industry, and study and promote mutual recognition of testing and standards.

Industry insiders also suggest that China should establish an industrial service system and form a combination of international automotive businesses. We need to create a platform for international development, exchange, and promotion in the industry, and carry out trade coordination, international exchanges, and other work.

Chen Shihua, Deputy Secretary General of the China Association of Automobile Manufacturers: In addition, we believe that enterprises should continuously improve their brand power in international competition and place brand building in an important position.