At the International Motor Show in Munich, Germany, held in September this year, people visited Huawei's booth. Photo by Xinhua News Agency reporter Lu Yang
On December 1, visitors experienced the Great Wall Euler electric vehicle at the 38th Thailand International Motor Show held in Bangkok, Thailand. Photo by Xinhua News Agency reporter Wang Teng
In 2021, with the gradual recovery of overseas market demand, Chinese auto brands, with their increasing competitiveness and strong industrial chain supply chain resilience, continue to grow in exports in overseas markets, and the pace of "going out" has accelerated significantly, winning the double growth of overseas popularity and word of mouth with strength.
The quantity and quality of exports have risen together
According to the latest data released by the China Association of Automobile Manufacturers, the cumulative export volume of Chinese automobiles in the first 11 months of this year reached 1.793 million units, an increase of 1.1 times year-on-year. Among them, the export volume in November reached 200,000 units, an increase of 59.1% year-on-year.
Exports of a number of Chinese auto brands have increased significantly, hitting new highs. From January to November this year, SAIC Motor exported 245,000 passenger cars, exceeding the total export sales of last year; Jiangqi Group exported 68,000 units, an increase of 112.8% year-on-year; Chery Automobile exported 237901 units, an increase of 137.6% year-on-year; Geely Automobile exported 97,883 units, an increase of about 61% year-on-year; and Changan Automobile exported 109,000 units, an increase of 120% year-on-year.
At the same time, Chinese auto brands have also achieved breakthroughs in more overseas markets, and their rankings in many markets are also rising, and their reputation is gradually improving.
Up to now, SAIC Motor Passenger Vehicle has entered the markets of 66 countries and regions, and the product penetration rate has been continuously improved. From January to October this year, SAIC Motor's cumulative sales of passenger cars in Australia and New Zealand exceeded 35,000 units, ranking ninth in the Australian passenger car market, up eight places from the previous year, and fifth in the South American passenger car market.
In the first 11 months of this year, Great Wall Motors sold 20,359 vehicles in Australia and New Zealand, an increase of 253% year-on-year, becoming the fastest growing Chinese brand in local sales, and the Australian and New Zealand markets also became the largest overseas market for Great Wall Motor's vehicle exports.
Geely Automobile ushered in an explosive period in overseas markets this year: the first geometric C models that went to sea reached 2486 cumulative orders in the month of listing in Israel; in the Philippines, Geely Automobile's monthly sales set a new record; in Qatar, Geely Automobile's market share ranked in the top ten positions.
The European and Asian markets remain the focus of the export layout of Chinese auto brands. At the International Motor Show in Munich, Germany, held in September, Great Wall Motor exhibited popular models such as the Euler, a small electric vehicle that is popular in China. Also in September, Hongqi Motor's strategic model, the pure electric intelligent SUV E-HS9, announced its export to Europe, achieving an important breakthrough in the overseas high-end new energy vehicle market. From January to November, Geely Automobile's Lynk & Co brand has achieved a cumulative delivery of 4,380 vehicles to European customers under the subscription model, and the shipment volume of the Lynk & Co brand exports to the European market has reached 10,702; in the second half of this year, Lynk & Co's "Asia Pacific Plan" was launched, and Lynk & Co 01 also completed the listing in Kuwait.
Many Chinese car brands have focused on expanding into the Norwegian market this year. In September, NIO ES8 vehicle officially opened user delivery in Norway, bringing power exchange technology that is not available in the local area, and upgrading hardware functions through the cloud to bring users a new intelligent and digital experience. In addition, BYD has also begun to ship electric vehicles to Norway this year, and China's FAW has also launched car exports to Norway.
Chinese auto brands are also accelerating their long-term layout along the Belt and Road. In April this year, China FAW Hongqi brand and all products announced the listing in Saudi Arabia, and the Hongqi Riyadh flagship store was officially opened on July 1, which is the third flagship store of Hongqi brand in Saudi Arabia after Jeddah and Dammam flagship stores. In addition, Hongqi Motors has also established showrooms in Dubai, Kuwait, Azerbaijan, Cambodia and other countries and regions in the United Arab Emirates to showcase China's high-end auto products to the world.
Precisely match the needs
This year, the characteristics of "high-quality exports" of Chinese car companies have begun to appear. Exports of new energy vehicles have soared, leading the transformation of green transportation and travel in the local market. At the same time, both traditional car companies and new car-making forces are committed to launching customized and accurate models and services that match the needs of overseas markets, and China's automobile exports have gradually shifted from relying mainly on the low-end market to the high-end market.
New energy vehicles have become an important area driving the growth of China's automobile exports. According to data from the China Association of Automobile Manufacturers, from January to November this year, China exported 291,000 new energy vehicles, an increase of 189.9% year-on-year. Among them, 37,000 new energy vehicles were exported in November, contributing 32.9% to the growth. With sensitivity to the needs of electrification and intelligence, the sales of new energy models by Chinese car companies are not only favored by overseas consumers, but also help the transformation of local transportation energy consumption.
According to the data of the Association of Automobile Manufacturers, the top car companies in China's new energy vehicle export volume in November were SAIC Passenger Vehicles (6110 units), Great Wall Motors (426 vehicles) and BYD (404 vehicles), and the export volume of new energy vehicles of other car companies continued to rise.
Xia Heng, co-founder and president of Xiaopeng Motors, explained the internationalization strategy when releasing the new model Xiaopeng G9: "We don't want to simply be a Chinese company, but want to become a global company. We have enough patience and will spend a long time preparing to plan the layout of overseas markets. G9 is our first model that fully considers globalization from the beginning of design, and the design of this model not only pays attention to the issues of regulatory certification and environmental protection in various markets around the world, but also considers the needs of many overseas users in terms of function. ”
Xia Heng also said that Xiaopeng's "going to sea" is not simply to wholesale the car to the local dealer, but to deliver the car to each customer one by one and get them a lot of interesting ideas. "These needs and practices will be applied to our global models and demonstrated at the right time."
Marketing is grounded, accurately matching local road conditions and use needs, and has also become a major feature of Chinese car companies going overseas.
Great Wall Motors has established more than 500 distribution networks in more than 60 countries overseas, and this number continues to rise. In the cumulative sales of more than 2 million Great Wall Gun pickup trucks, exports account for more than 400,000 vehicles, and the rapidly growing sales are due to overseas local policies, such as the Thai government's tax incentives and diesel subsidies for pickup truck models, and car companies have contributed to the marketing and "human design" shaping of the Great Wall Gun. In order to be able to integrate with the global pickup truck trend culture, the Great Wall Cannon launched a supercar pickup truck at this year's Guangzhou Auto Show, using the Great Wall Cannon as a prototype car, modifying it with a wide body and a low body, and the transformed model is very in line with the thai and Mexican car play culture, in order to quickly open the local market.
Geely Automobile's Lynk & Co brand mostly appears in the form of leasing in the European market, and this marketing promotion strategy stems from local market research. European cars are idle for the most part, so the focus of Lynk & Co Europe's plan has shifted rather than on vehicle sales, but on vehicle use. Consumers can choose short-term rental, long-term rental or purchase of vehicles to meet the diverse needs of users as much as possible. For an unfamiliar brand, the use of leasing can eliminate users' concerns about the product and be more acceptable.
The whole industry chain goes to sea
Industry insiders believe that the substantial improvement in appearance, quality, intelligent network configuration and other aspects, so that the competitiveness of Chinese car brands overseas continues to increase, especially the sudden emergence of new energy vehicles to give China's auto industry more opportunities to win the market, car companies will continue to accelerate the promotion of automobile exports.
From the perspective of export strategy, major car companies have strong expectations for more and faster access to overseas markets.
During the "14th Five-Year Plan" period, SAIC Motor plans to shift from focusing on domestic business to deepening the domestic market and expanding overseas markets. Through the whole industry chain going to sea, we will reconstruct the sales structure of SAIC Motor Group, and strive to exceed 1.5 million overseas sales, accounting for 15% of the group's overall sales, and the average annual compound growth rate is expected to exceed 30%. In 2025, SAIC Motor's European sales will hit the scale of 300,000 vehicles, of which new energy vehicles account for 70% to 80%, and achieve full coverage of entry-level to mid-to-high-end products. SAIC Motor strives to step onto the top five new stages of global auto enterprises in 2025 and become a trillion-level automotive industry group with global competitiveness of the industry and international brand influence.
Jiangqi Group is also actively implementing the internationalization strategy, changing the export of a single automobile to the output of the whole industry chain. During the "14th Five-Year Plan" period, Jiangqi Group has regarded the international business as a strategic core business and upgraded it to the same status as the domestic business. To this end, Jiangqi Group has set a strategic goal of reaching 150,000 vehicles in the international market by 2025.
Chery Automobile's overseas strategy is very clear, and during the "14th Five-Year Plan" period, it will fully realize the "double 50", that is, export 500,000 vehicles per year and achieve an export profit of 5 billion yuan, which means that a quarter of Chery Automobile's sales in 2025 will be contributed by overseas markets.
Geely Automobile's external strategy is also ambitious. In October this year, the "Smart Geely 2025 Strategy" and the "Nine Dragon Bay Action" were released to the public, of which the "Longwan Action" included comprehensively promoting Geely's globalization process and realizing technology going to sea, with overseas sales of 600,000 vehicles planned to reach 2025. Geely brand will focus on the layout of Eastern Europe, the Middle East, Southeast Asia, Africa, South America and other "Belt and Road" countries, build more than 600 overseas sales outlets around the world, and enter the European and Asia-Pacific new energy vehicle markets. After Lynk & Co's "Asia Pacific Plan" officially landed in Kuwait, Lynk & Co will continue to enter the auto markets of the United Arab Emirates, Bahrain, Saudi Arabia, Qatar, Oman, Israel and other countries in the future.
As an international enterprise that has completed its listing in Hong Kong, China and New York, china, and New York, Xiaopeng Motors has a global vision in its strategic layout. At present, in addition to China, Xiaopeng Motors also has R&D centers in Silicon Valley and San Diego. On the product side, the Xiaopeng P7 has been officially launched in Norway on October 25, and the new smart flagship SUV Xiaopeng G9, which debuted at the 2021 Guangzhou Auto Show, is a model designed and developed for the global market. Xiaopeng Motors will continue to actively deploy in Norway and other European markets, and will continue to improve its sales, delivery and service systems in Sweden, Denmark and the Netherlands in the future. Gu Hongdi, vice chairman and president of Xiaopeng Motors, said that Xiaopeng Motors' long-term goal is to sell 50% abroad.
Fu Bingfeng, executive vice president and secretary general of the China Association of Automobile Manufacturers, said that in 2021, China's automobile sales are expected to exceed 26 million, new energy vehicle sales are expected to reach 3.4 million, and automobile exports are expected to exceed 2 million. The "2022 CICC Auto White Paper" also expects that in 2022, the penetration rate of new energy vehicles in the global mainstream market will exceed the critical point of 10%, new energy vehicles will enter the steep stage of the S-shaped growth curve, the export market is expected to achieve multi-fold growth, and leading independent car companies will open up double growth space.
Source: Economic Reference Newspaper