"Chinese car brands have been able to live until now, and they are doing well." This sentence has been repeatedly mentioned by many car company executives. The reason for this judgment is that Chinese auto brands have not only won a double harvest of sales and word of mouth, but also achieved the "domestic + overseas" two major markets go hand in hand. Entering overseas markets and participating in global competition are important criteria for testing whether an automobile brand is international. Only by opening up overseas markets outside the local market can we have the opportunity to become a world brand. In 2021, with the explosive growth of the number of automobile exports and the change of the export environment, Chinese brands are ushering in the "second curve" of growth.
Chinese auto brands are ushering in a harvest period in overseas markets
According to the latest statistics of the China Association of Automobile Manufacturers, from January to November 2021, Chinese brand passenger cars exported 1.427 million units, an increase of 1.2 times year-on-year.
According to the latest data released by the General Administration of Customs, from January to November this year, the highest proportion of growth in the cumulative export volume and amount of China compared with the same period last year was automobiles (including chassis, passenger cars, commercial vehicles), from January to November this year, the cumulative export of 1.928 million vehicles, an increase of 101.9%; the cumulative amount of 202.99 billion yuan, an increase of 108.4%. According to the statistics of Guangzhou Port, in 2021, Guangzhou Port will open 6 new foreign trade export routes, which will facilitate the export of Chinese auto independent brands such as SAIC-GM-Wuling, Geely, GAC Trumpchi, Changan and BYD to Mexico, the Middle East, Southeast Asia and Europe. From January to November this year, Guangzhou Port's cumulative export of automobiles exceeded 100,000 units, an increase of 180.6% year-on-year, a record high.
It is not easy for Chinese auto brands to export overseas, facing a series of thresholds such as product quality, emission standards, access rules, etc., coupled with local operations and other reasons, for a long time, the export of Chinese auto brands is in the investment stage of "only seeking hard work, not asking about harvest".
In 2021, the export of Chinese automobile brands finally ushered in the harvest period, and the sales volume of many brands in overseas markets climbed. From January to November this year, SAIC Motor exported 245,000 passenger cars, exceeding the total export sales of last 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 initially built a global sales and service system overseas. Up to now, Guangcheng International has promoted the GAC MOTOR brand to enter 26 countries and regions, and the product penetration rate has been continuously improved. In September this year, nearly 1,000 new cars were exported to Mexico by Guangcheng International, and the local supply was in short supply, with more than 400 orders per month. In view of this, the second batch of new cars has also been loaded and set sail, and will be launched on the local market at the end of this year.
SAIC Passenger Vehicles has entered 66 countries and regions, of which the cumulative sales in Australia and New Zealand exceeded 35,000 units, ranking ninth in the Australian passenger car market. BYD officially entered the Philippine passenger car market in 2013. After nearly a decade of development, ATD's market share of new energy passenger cars in the Philippines has exceeded 80%, ranking first in the Philippine market share.
New energy vehicles have become an important driver of the surge in export volume
"European market" and "new energy vehicles" are the two keywords for the explosive growth of Chinese brand car exports in 2021. According to the statistics of the China Association of Automobile Manufacturers, the sales volume of new energy vehicle passenger cars in Europe in 2020 will be 1.365 million units, becoming the world's largest new energy vehicle market, which has also brought greater incremental opportunities to the export of new energy vehicles of Chinese brands.
At the 2021 Munich Motor Show, Great Wall Motors announced its entry into the European market. Qiang Sunbing, vice president of Weipai EU brand, said that the growth trend of new energy vehicles in Europe is very fast. European countries have strong support and subsidy policies for new energy vehicles, such as Germany's subsidy policy is planned to end in 2020, but it has now extended to 2025. It is reported that in the first 11 months of 2021, MG accounted for 1.9% of new car sales in the UK, surpassing Honda and Mazda; in November, the proportion of single-month sales increased to 3.6%, close to Nissan and Ford. The key reason for MG's hot sales in the UK is that local young consumers are increasingly favoring technologically advanced and environmentally friendly new energy vehicles. Among them, due to the high penetration rate, Norway has become the first stop for many Chinese car brands to explore the European market. In September, NIO ES8 cars started delivery in Norway. BYD and China's FAW have also started exporting cars to Norway. Since the beginning of this year, in addition to new energy buses such as Yutong and BYD, new energy vehicles under SAIC, Hongqi, Weilai, Xiaopeng, Aichi, Great Wall Euler and other brands have also entered the European market. "This year, the European new energy vehicle market trend is very strong, the European government subsidy policy has promoted the development, and China has a certain foundation in new energy vehicles, which provides opportunities for China's new energy vehicle exports." Cui Dongshu, secretary general of the National Passenger Car Joint Association, said.
In November 2021, Chinese brand passenger cars exported 170,000 units, an increase of 71.2% year-on-year. Among them, the export growth ratio of new energy vehicles was 32.9%. That is, for every 10 cars exported, 3.3 are new energy vehicles.
Dongxing Securities Research Report believes that China's automobile exports will increase significantly in 2021, on the one hand, the layout of independent brands will continue to advance into the product volume period. On the other hand, overseas vehicle production has been more affected by the epidemic and cannot meet the normal local demand. In the major overseas markets, the European market is larger, and the original pattern is relatively stable, but most of them are concentrated in the field of fuel vehicles. In the field of new energy vehicles in Europe, all brands, including Chinese brands, stand on the same starting line. In the next three years, Chinese brands are expected to gain 1% of the local market share.
In addition to Europe, in South America, Asia and other overseas markets, Chinese brands have also accumulated a set of systematic experience, in the introduction of new cars, localization services, brand marketing and other aspects can continue to understand the needs of consumers in different regions and respond quickly.
Chinese cars are expected to expand the "leading" advantage of electrification and intelligence
According to the China Association of Automobile Manufacturers, China's total automobile sales will reach 27.5 million units in 2022, an increase of 5.4% year-on-year. Automobile exports will be an important driver to promote the high-quality development of China's automobiles, and new energy vehicles are an important area to promote the growth of China's automobile exports.
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. From January to November this year, China exported 291,000 new energy vehicles, an increase of 189.9% year-on-year. This good growth trend is expected to continue into 2022.
Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers, said that in 2022, China has multiple factors conducive to the development of the automotive industry, such as the sustained and stable recovery of the macro economy, the promotion of automobile consumption by macro policies, the strong overseas demand, and the continuous improvement of new energy vehicle exports.
China's new energy automobile companies are making various preparations for automobile exports. At the 2021 Guangzhou Auto Show, Xiaopeng G9 was launched in the world, and the car was based on internationalization at the beginning of research and development, and it was necessary to meet the needs of different countries in terms of regulations and environmental protection. SAIC motor plans to hit 300,000 vehicles in Europe in 2025, of which new energy vehicles account for 70% to 80%, and achieve full coverage of entry-level to mid-to-high-end products. Geely Automobile plans to sell 600,000 units overseas by 2025. During the "14th Five-Year Plan" period, Chery Automobile should fully realize the "Double 50", that is, export 500,000 cars per year and achieve an export profit of 5 billion yuan. Industry insiders believe that the substantial improvement of product strength has greatly improved the competitiveness of Chinese brands overseas. The "leading" advantage of Chinese cars in electrification and intelligence, coupled with a clear forward-looking layout, is even more promising for Chinese brands to win more opportunities in overseas markets.
Text/Guangzhou Daily, New Flower City Reporter: Zhou Weili
Photo/ Guangzhou Daily, Xinhuacheng Reporter: Zhou Weili
Guangzhou Daily New Flower City Editor: Zhao Dongqin