Introduction: In recent years, with the subversive changes in the automotive industry, car companies have different opinions on the formulation of future technical routes and product strategies, but for Chinese car companies in the world's largest market, in addition to the pursuit of the "new four modernizations" era, "going out" has gradually become a consistent issue for many Chinese car brands in the era of quantity.
(Text/Zhang Jiadong Editor/Lou Bing) With the sharp contraction of the domestic auto market since the second half of 2018. China's auto market has officially entered a new normalization stage of stock competition. In the increasingly cramped domestic market space, the export market has become an important channel for the growth of China's vehicle enterprises.
In 2021, China's automobile exports were 2.015 million units, an increase of more than 1 times year-on-year, which not only set a new record for China's automobile exports, but also broke the bottleneck period of China's automobile exports that have been hovering in the millions for a long time.
Among the Chinese car companies that exported, SAIC motor exported 290,000 vehicles last year, an increase of 68% year-on-year. Chery's total exports reached 213,000 units, up 145.7% year-on-year; Geely Automobile exported 98,000 units, an increase of about 61% year-on-year; Changan Automobile exported 109,000 units, an increase of 120% year-on-year; and Tesla, a wholly-owned car company in China, exported a total of 160,000 units. In addition, in 2021, among China's export models, a total of 310,000 new energy vehicles, accounting for 15% of the total exports, increased by 3 times year-on-year, exceeding the total historical cumulative exports.
In terms of export destinations, before 2018, the main countries of China's automobile exports were mostly concentrated in developing countries such as Central Asia, South America, South Africa and emerging markets. Since 2019, high-purchasing power countries such as Saudi Arabia and Australia have gradually become a new force in China's automobile exports. In 2021, the main increase in exports will come from relatively developed countries such as Belgium, the United Kingdom, and Germany.
The sharp increase in export sales in 2021, the increase in the proportion of new energy and the maturity of export destinations show that the position of Chinese car companies in the market has rapidly improved. Fu Bingfeng, executive vice president and secretary general of the China Association of Automobile Manufacturers, said: "The changes in China's auto export market in 2021 reflect the turning point of the overseas development of Chinese car companies from quantitative to qualitative changes. "Under the increasingly sophisticated pace of China's auto products, the surge in the number of vehicle exports in 2021 will also become a new tone for the future export market."
Faltering
Of course, the pace of China's auto exports has not been smooth. As mentioned earlier, exports have been hovering at the million level for many years, and even fell at one point. In 2012, when China's automobile exports peaked, the export volume exceeded 1 million vehicles, and the China Automobile Association also held a celebration event in Beijing. After that high, exports continued to decline, falling to 730,000 units in 2015.
Although the data decline in this, there are some independent brands in overseas factories to carry out localization production, resulting in vehicle exports into parts exports, affecting the final data display. However, the sluggish export data in a considerable part of the time is actually related to the market-oriented environment in which independent brands are located and their own development strategies.
Since becoming the world's largest automobile market in 2009, China's auto market has entered a golden decade of development, and independent car companies that have just begun to have a certain willingness to export to the outside world have also set their sights on the domestic market, which is in a stage of rapid growth and easier to make money.
However, during the outbreak of the Chinese market, independent car companies lagged behind the world's advanced level in terms of core technology and key component technology. The dominant state-owned automobile enterprises generally have problems such as low efficiency and insufficient research and development capabilities, while private automobile enterprises are facing insufficient funds for independent innovation and research and development. In addition, the lack of synergy between industry, academia and research has also made the transformation of new achievements in the field of academic research into a profit cycle that is too long.
It is precisely because of the weak ability of independent innovation that the export of independent brand automobile products generally has the defect of "three lows", and it is greatly limited in the competition with traditional automobile powers when expanding overseas markets.
At the same time, due to the lack of matching top-level design, the Chinese automobile industry has long lacked a clear, clear and operable target system of independent innovation capabilities in its development strategy. At that time, export data was often regarded by enterprises as an accessory to the icing on the cake.
Spontaneous awakening
However, with the decline of the domestic market after 2018, China's automobile exports have been raised to a new height. In 2019, Wei Jianjun, chairman of Great Wall Motors, proposed that "Great Wall Motors chooses to die abroad and also to challenge." In the same year, Yin Tongyue, chairman of Chery Automobile, also put forward the theme strategy of "continuing to adhere to open innovation and creating independent international famous brands". The change in the strategic attitude of independent brands has prompted China's automobile exports to enter a stable and rapid growth cycle.
In recent years, the rapid rise of independent brand technology and quality has become the strongest endorsement of China's automobile exports. Since 2019, independent brands have rapidly moved closer to joint venture products on the product side, and through strategic adjustment and technology application, brands such as Great Wall, Geely, and Changan have crossed the threshold of annual sales of one million vehicles; SAIC Passenger Cars, Chery and other independent brands have also developed rapidly.
In 2021, the market share of Chinese brand passenger cars increased significantly, with annual sales of 9.543 million units, an increase of 23.1% year-on-year, accounting for 44.4% of the total passenger car sales.
The rise in the quality of key parts and vehicles has led to a rapid change in the recognition of Chinese auto products and brands in overseas markets.
According to the report of the 2021 EU Automotive Safety Assessment Organization, the performance and quality scores of SAIC MG have reached the same grade of Audi, BMW and other brands. The Hongqi H9 was voted one of the most popular safety vehicles by Saudi Arabia, the most purchasing power in the Middle East. Volkswagen CEO Herbert Dies also expressed his high appreciation for Chinese brand cars in an internal speech at the guild.
At the same time, the sense of identity in overseas markets has further deepened the willingness and confidence of independent brands to "go global". At present, mainstream independent brands such as FAW, Dongfeng, SAIC, BAIC, GAC, Changan, Geely, Chery, Great Wall, JAC and BYD have clear overseas market layout plans.
Taking SAIC Motor, which ranks first in export volume in 2021, as an example, SAIC motor has experienced many failures since it officially prepared for overseas business projects in 2011. Yu Jingmin, then deputy general manager of SAIC Passenger Vehicles, pointed out: "Independent brands must clearly understand that to win the overseas market, they cannot just export, they must build a mature and perfect system, although it is difficult at the beginning, but it is the only way to go." ”
After 8 years of hard work and precipitation, SAIC Motor has gradually outlined the layout of the overseas operation system integrating sales, research and development, production and service. At present, SAIC Motor has established three major innovation and R&D centers in Silicon Valley, London and Tel Aviv, three overseas vehicle manufacturing bases in Thailand, Indonesia and India, 95 overseas parts bases, and 12 regional marketing service centers including Europe, South America, the Middle East, North Africa, Australia and New Zealand and ASEAN, etc., set up more than 500 overseas marketing service outlets around the world, created 4 overseas logistics branches and 3 ocean routes, and established diversified financial companies in Indonesia.
In terms of business strategy, while adopting differentiated products, SAIC Motor has also moved the domestic efficient system to the international market. For example, in the Thai market, "smart interconnection" is used as a breakthrough to attract consumer attention; the usual two-month delivery period for local vehicles in Europe is advanced to two weeks or even faster. In order to better integrate into the local market, SAIC Will even choose to adjust its positions in the Middle East market and other localities, and hire overseas professional managers who have been engaged in international operations for a long time, so as to make business progress more in line with local customs.
Similar business strategies have formed a similar collective effect in the overseas marketing strategies of independent brands. Compared with the model of domestic manufacturing transportation to overseas sales 10 years ago, major groups have now built a full set of industrial chain layouts such as R&D centers, vehicle manufacturing bases, and service marketing networks in overseas main sales markets. More abundant technology, funds and market support have laid a solid foundation for the continuous growth of sales of independent brands in overseas markets.
Industry "forerunner"
On the other hand, the rapid growth of independent brands and the opening up of policies at the national level have given Chinese car companies a leading position in the wind of the times. Facing the electrification and intelligent transformation of the automotive industry, China has strengthened the comprehensive policy promotion such as new energy subsidies since 2015. Although it was once astray in the early stage of market development, China has successfully become a vane for the global market in the field of new energy vehicles and intelligence.
In 2021, China's new energy vehicle sales reached 3.521 million units, an increase of 1.6 times year-on-year. Among them, a total of 2.476 million New Energy Passenger Vehicles of Chinese brands were sold, accounting for 74.3% of the total number of new energy passenger vehicles. With the rapid growth of the mainland's new energy industry, the export business of new energy vehicles has also begun to break out. In 2021, 310,000 new energy vehicles will be exported, an increase of nearly 3 times year-on-year. In November 2021, the contribution ratio of mainland new energy vehicle exports to growth was 32.9%, that is, 3.3 for every 10 cars exported were new energy vehicles.
Even in the face of the comprehensive turn of joint venture car companies in 2021, independent brands have made sufficient global synchronization and even first-mover advantages in the field of electrification and intelligence. Chinese suppliers such as CATL, Hive Energy, Baidu, Huawei, etc., from batteries and electronic control technologies to vehicles and autonomous driving solutions, have effectively created relatively mature industrial supply chain advantages in the transformation of the core selling points of the vehicle.
Under the aggravation of the epidemic and the lack of core in 2021, this advantage has been vividly reflected, and among the export destinations of new energy vehicles, the European markets such as the United Kingdom, Norway, Germany, and France have become the main incremental markets. Fu Bingfeng said, "China's automotive industry supply chain is relatively complete, which can provide overseas consumers with competitive products in a timely manner and create sustained and rapid growth for exports." ”
At the enterprise level, the expansion of overseas markets is not limited to traditional car companies, and the new car manufacturers who focus on the high-end market are more simple and rude to the overseas market. From the establishment of the brand, the new car brand facing the mature market has the concept of overseas research and development and distribution at the beginning of the layout, such as the construction of marketing networks in major European cities such as Ji Kr, Weilai, Xiaopeng and Aiways, and even earlier than the birth of its first product. Just like Tesla's subversion of the global market, the new car has taken root in overseas markets, and has also created its own unique business card and label, and has provided a steady stream of fresh blood for the export providers of Chinese car brands.
Reverse output
At the same time, from the export of technology to China in the 1990s to the current "localization" to the strategic level of taking root in China, "based on China, looking at the world" is becoming an important choice for global car companies. With the significant improvement of China's vehicle R&D and manufacturing capabilities, the quality of the joint venture brand in China has also made a qualitative leap forward.
In 2021, the number of exports from Tesla's gigafactory will reach 160,000 units, accounting for 7.9% of China's total automobile exports. Industry insiders believe that the European market is known for its strict requirements, Tesla Shanghai Gigafactory products exported to Europe, representing the level of China's automobile manufacturing, industrial chain and comprehensive manufacturing level, has a strong international competitiveness. Tesla also said that the Shanghai Gigafactory will undertake more original design and research and development of products in the future.
In addition to Tesla, luxury brands such as BMW and Lincoln also expressed their hope to "localize" China last year and use China as an innovation base to present different product visions for the global market. Last year, Gao Le, President and CEO of the BMW Group Greater China, said: "At the time of 'China's trends leading the world', 'Settling home' china will help the BMW Group transform the needs of Chinese consumers into competitive products and give full play to the creativity from China in the strategic transformation on a global scale." ”
Today, on the Ford Mustang Mach-E, BYD's NCM811 battery has been implemented; in GAC Mitsubishi Artuka, GAC Aeon has played the role of the core technology supplement of the three-electric system. From "take-ism" to "reverse export", China's auto market has achieved a comprehensive transformation on the technical side. In this context, the resale of joint venture auto products produced in China in the local market of the joint venture is destined to become a growth point with great potential in the export business.
Take a look:
In the past 30 years, China's automobile market has also undergone earth-shaking changes, from a car is difficult to find to travel essentials, Chinese car brands have experienced countless technical accumulation, product polishing and brand building in the market. Years of deep cultivation of overseas markets have expanded the overall sales scale and brand influence for car companies, and also laid a solid endorsement for Chinese automobiles to comprehensively knock on the door of overseas markets.
The surge in export figures in 2021 is the truest feedback and portrayal of the overall reform of China's automotive industry. With the continuous deepening of the global business layout, Chinese auto brands will continue to rapidly change their image in overseas markets.
Under the comprehensive empowerment of the overseas strategies of various car companies, China's auto export business is destined to enter a long-term sustained growth period, and at the same time, driven by the rapid rise of the global new energy market, Chinese brands that occupy the first opportunity are also expected to achieve staged leapfrog growth.
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