No. 1 in the world! China's automobile export "volume" has won
"Do you know what Chinese products are the most popular in Russia right now? "I have been doing parallel import car business for more than ten years, dumping foreign cars to Dahua in China, and now shuttle through the border between China and Kazakhstan in Xinjiang and start a Chinese car export business.
"The ideal L9, which costs about 450,000 yuan in China, was once sold for 11 million rubles in Russia, equivalent to 900,000 yuan. In the eyes of Russian consumers, Hongqi is comparable to Rolls-Royce. Dahua told China News Weekly that now in the port of Khorgos, there are a group of active engaged in the automobile export business of the "downsided", their "upside-down" cars are not only Hongqi, ideal, but also Chery, Geely, BYD, Changan, Krypton, tank and other brand models.
"Russian consumers feel very new to China's smart cars, such as the 'refrigerator, color TV, and large sofa' on the ideal L9 car, which is different from the cars they have been exposed to before. In Russia, it has even given birth to an industry dedicated to Russian-language brushing of ideal car machines. Dahua said.
Khorgos is the mainland's largest land port for automobile exports, and thousands of commercial vehicles are sent to Kazakhstan, Uzbekistan, Russia and other countries every day after completing the inspection procedures. According to the statistics of Khorgos Customs, in January ~ November 2023, 269,000 commercial vehicles were exported from Khorgos port, a year-on-year increase of 326.4%. Among them, 103,000 commercial vehicles were exported from highway ports, a year-on-year increase of 268.7%, and 166,000 commercial vehicles were exported from railway ports, a year-on-year increase of 372.5%. Since August 15, 2023, when the Khorgos Highway Port piloted 7×24-hour freight customs clearance, automobile exports have shown a "blowout" growth, with more than 2,000 vehicles entering and leaving the country in a single day, a record high.
And this is just a microcosm of the explosion of China's auto exports. At the 2023~2024 China Economic Annual Conference held by the China Center for International Economic Exchanges on December 13, 2023, Han Wenxiu, deputy director of the Central Finance Office in charge of daily work and director of the Central Agricultural Office, introduced that in 2023, China's automobile exports will exceed 5 million, setting a new historical record.
On January 9, 2024, the Passenger Car Market Information Association released data showing that passenger car exports in December 2023 were 385,000 units (including complete vehicles and CKD, i.e., full assembly of bulk parts), a year-on-year increase of 49%, although the export data of commercial vehicles in December has not been released as of press time, but on the basis of 4.762 million units in the previous 11 months, the annual export volume has undoubtedly exceeded 5 million units.
Leap to "No. 1 in the world"
In 2023, Russia became China's largest destination for car exports.
Sputnik reported that in 2022, the market share of Chinese car brands in Russia increased from 9% to 37%. From January to October 2023, China's exports of cars to Russia reached 730,000 units, seven times that of the same period last year. According to Chinese customs data, Russia has jumped from 11th place to China's largest auto export market, with exports reaching 9.4 billion US dollars in 1~10 months, compared with only 1.1 billion US dollars in the same period last year. The Russian car dealer "Special Center for Automobiles" even predicts that the share of Chinese cars in the Russian market could reach 80% in 2024.
In Dahua's view, it is a good business to sell Chinese cars now, especially in the Russian-speaking region, where there are not only official overseas sales channels established by some Chinese car companies, but also a large number of individual and foreign trade companies.
In Dahua's view, with the continuous growth of China's automobile exports, more and more people are doing this business, and some large ports are close to saturation, and now the export market to small island countries is still very large, and there are many opportunities. According to his judgment, the establishment of Chinese automobile after-sales maintenance services overseas will be the next outlet. "Chinese cars have not yet established a complete after-sales maintenance network in Russia, and now it is difficult to find spare parts, and car repairs are still very expensive."
External factors such as geopolitical changes and setbacks in the international supply chain system caused by the new crown epidemic have become opportunities for Chinese automobiles to accelerate their overseas expansion. During the pandemic, the global automotive industry chain was severely impacted, and some overseas automakers had to reduce the supply of vehicles due to supply chain shortages. China has a complete automotive industry chain and is able to collaborate effectively. China's auto production capacity is not only sufficient to supply the domestic market, but also to fill the overseas market.
Previously, a number of authoritative institutions have predicted that in 2023, China's auto exports will surpass Japan and take the top spot as the world's largest auto exporter.
According to the export data released by the Japan Automobile Manufacturers Association, Japan's automobile exports for the period of January~November 2023 will be 3.99 million units, and the annual export volume is expected to be around 4.3 million units. China's customs exports of 4.762 million vehicles in January ~ November 2023, plus 385,000 passenger vehicles exported in December (including finished vehicles and CKD), without taking into account the December commercial vehicle export data, China's automobile exports have exceeded 5 million units, making the above forecast a certainty.
Compared with the steady increase in the automobile export business of other countries, China's automobile exports have almost "jumped" up. According to the data of the China Association of Automobile Manufacturers, from 2021, vehicle exports have grown strongly, with the export volume exceeding 2 million for the first time that year, a year-on-year increase of 103%, becoming the world's third largest automobile exporter, and in 2022, automobile exports will achieve a historic breakthrough again, with the export of complete vehicles (including complete sets of parts) exceeding 3 million for the first time, reaching 3.3212 million units, a year-on-year increase of 56.8%, and the export value of 60.156 billion US dollars, a year-on-year increase of 74.7%, and in 2023, this data will jump to more than 5 million units, surpassing Japan and setting a new historical record.
"The export of vehicles in mainland China has a blowout in a short period of time, and the volume and price have risen, indicating that the brand value of mainland automobile companies has begun to be recognized. Zhou Weidong, president of the Machinery Industry Branch of the China Council for the Promotion of International Trade, said at the conference on the international development of the automobile industry.
Although fuel vehicles are still the absolute main force in the export data, the export growth rate of new energy vehicles is very rapid. According to data from the China Association of Automobile Manufacturers, in 2020, the mainland exported nearly 70,000 new energy vehicles, accounting for only 7.0% of the total vehicle exports, in 2021, the export of new energy vehicles reached 310,000 units, a year-on-year increase of 300,000 units, and in 2022, the export of new energy vehicles reached 679,000 units, a year-on-year increase of 1.2 times.
According to Zhang Yongwei, vice chairman and secretary general of the China Electric Vehicle 100 Association, China's new energy vehicle exports are expected to exceed 1.2 million units in 2023, a year-on-year increase of 80%, and 1.8 million units in 2024, a year-on-year increase of 50%, according to Zhang Yongwei, vice chairman and secretary general of the China Electric Vehicle 100 Association. The export destinations not only include Russia, but also widely cover traditional automobile powers such as Germany and Japan.
China's auto exports are completely positively correlated with the sudden rise of new energy vehicles in the world.
Who are the main exporters?
China's auto exports can usher in this "pouring wealth" in a short period of time, of course, it does not depend on luck. In recent years, the "quality" and "quantity" of Chinese auto brands have risen, and they have been deployed in the field of new energy vehicles for many years.
In the field of Chinese brand passenger cars, the main export car companies include SAIC, Chery, BYD, Great Wall, Changan Automobile, etc., while Tesla is still the main exporter in the field of pure electric vehicles.
According to data released by SAIC Motor on January 3, its overseas sales for the whole year of 2023 will be 1.208 million units, a year-on-year increase of 18.8%, ranking first in the domestic industry for eight consecutive years. Among them, SAIC's MG brand is quite popular in the European market, and in 2023, MG will also become SAIC's most sold brand in the UK, reaching 72,000 units. Chery also announced its export data on January 2, and in 2023, Chery's cumulative annual exports will reach 937,100 units, a year-on-year increase of 101.1%.
BYD, the domestic sales champion, has exceeded the 3 million mark in total sales in the past year, while also achieving a significant increase in exports. According to data provided by BYD, BYD will export 242,000 new energy passenger vehicles in 2023, a year-on-year increase of 334%. As of January 2024, BYD Passenger Cars has entered 59 countries and regions. The relevant person in charge of BYD told China News Weekly: "Within a year, BYD's passenger car business in Europe has covered 19 countries, with a total of more than 230 stores, and released five models: Han, Tang, Yuan PLUS, Seal and Dolphin." ”
In the field of pure electric vehicles, according to the data of the National Passenger Car Market Information Association, the cumulative delivery volume of Tesla's Shanghai Gigafactory in 2023 will be 947,000 units, which accounts for more than half of Tesla's total global deliveries. The Model 3 and Model Y produced by the company are not only delivered in Chinese mainland, but also exported to various markets such as Asia Pacific and Europe. According to third-party data, in 2023, more than 344,000 "Made in China Teslas" produced by the Shanghai Gigafactory will be exported to overseas markets, with an increase of about 26.9% year-on-year.
In 2022, China exported a total of about 945,000 pure electric vehicles, with Tesla products accounting for nearly 32%. In 2023, Tesla will still account for a significant proportion of pure electric vehicle exports.
Regarding the export of Chinese-made Tesla to the world as China's automobile exports, Zhou Weidong said, "The domestic Tesla is mainly based on the mainland's local supply chain, which should be regarded as the crystallization of the mainland's automobile industry and the embodiment of the initial competitiveness of the mainland's automobile industry chain." China's new energy vehicle industry chain is at the world's leading level, which can not only support Tesla, but also other foreign brands."
In the field of China's commercial vehicle exports, Yutong, the leader, has also delivered a beautiful report card. "As early as 2022, Yutong has won the sales championship of pure electric buses in Europe. Yutong Bus told China News Weekly. In some emerging segments, Chinese brands have also begun to deploy overseas. Geely's electric pickup truck brand, the Radar RD6, has not only been launched in China, but has also begun to be sold overseas. The person in charge of the automobile-related business of Radar told China News Weekly: "Radar has completed the preliminary layout of overseas markets, entered the Southeast Asian market and the Central American market, and will next penetrate into Central Asia, Eastern Europe, the Middle East and other regions." ”
"Interest in NEVs is increasing in Southeast Asia, driven by better subsidies and government incentives," said Lingkun Zhou, President of Deloitte Consulting China Enterprise Technology & Performance Group and Deloitte China Automotive Consulting Leader. In Southeast Asia, Japanese automakers, which have a high market share, are now sluggish in their electrification transformation, which also provides an opportunity for China's new energy vehicles.
A "roll out" transcript
For the big sales of China's new energy vehicles in the international market, Zhou Weidong attributed it to the comprehensive advantages of excellent manufacturing costs, early electrification transformation, and high degree of intelligence.
In Zhou Weidong's view, first of all, thanks to the large domestic market, the manufacturing cost of the whole vehicle is much better than that of the overseas market. Tesla has said that the production capacity of the Chinese-made Model 3 is about 65% lower than that of the United States. According to the UBS report, the Volkswagen ID models produced in China are exported to Europe by dealers in parallel, and the price of the same model produced locally is also 1/3 lower than that of the same model produced locally.
"Even in the European market, domestic cars can still have a cost advantage after superimposing high tariffs and value-added tax. This kind of advantage based on the whole industry chain is built by Chinese automakers in the past 20 years by insisting on independent research and development, and it is also our irreplaceable advantage. Zhou Weidong said.
Second, thanks to the global transition to electrification, China has a certain first-mover advantage. According to Zhou Weidong, in 2022, the global market share of new energy passenger vehicles will be 14%, but if the data of the Chinese market is excluded, this proportion is only 7%, while the penetration rate of new energy vehicles in mainland China will reach 28%. This first-mover advantage is not only reflected in the low unit price of components, but also in the core performance of the battery, such as energy density and mileage.
According to Li Xueyong, deputy general manager of Chery Automobile Co., Ltd. and general manager of Chery Automobile Marketing Company, China has "changed from a recipient of standards to a standard-setter" in the new energy vehicle market. Our safety standards not only meet the regulations in China, but also the standards of various countries." "It's all about the product. Li Xueyong told China News Weekly, "The chairman of the group said that Chery is an engine company, and in order to sell a good engine, he built a car by the way, and the engine and gearbox are good, which is the foundation of good sales."
"We have studied the historical data of waterlogging in major cities around the world, and the longest duration is London, England, 72 hours, so we have raised the design standard of battery waterproof capacity from the national standard of 1 meter deep for 24 hours to 2 meters deep for 72 hours, which is also much higher than the requirements of the European standard to minimize the economic loss of vehicles caused by flooding. The person in charge of the overseas market of Yutong Bus said that Chinese auto companies should not only work hard, but also continue to strengthen their understanding of overseas markets.
Moreover, Chinese brands have taken the lead in making efforts to be intelligent, and intelligent configuration has strong competitiveness. After the car + Internet, intelligent configurations such as in-car voice interaction, high-definition central control screen, and mobile phone App have become the standard configuration of domestic automobiles, and have unique competitiveness in overseas markets. It is expected that with the further maturity of intelligent driving technology, China's intelligent vehicles may achieve "dimensionality reduction" and become a new core competitiveness.
With the rise of China's vehicle brands, the resilience of the new energy vehicle industry chain is also increasing, which not only attracts more international companies to invest, but also promotes the shortcomings of the industrial chain to be continuously strengthened. For example, after Tesla laid out the super factory in the Shanghai Lingang area, it also laid out the energy storage super factory project. The project will plan to produce ultra-large commercial energy storage batteries (Megapacks) for the global market. "The Shanghai Energy Storage Gigafactory is Tesla's first energy storage Gigafactory outside of the United States. The relevant person in charge of Tesla told China News Weekly, "The energy storage super factory will form a synergy with the vehicle R&D and manufacturing sector in Shanghai to provide better products and services for users in China and around the world." Qiu Xiaoxin, founder, chairman and CEO of Aixin Yuanzhi, told China News Weekly that the rise of Chinese brand cars has also driven the rise of the supply chain. "Chinese brands are the most willing to use domestic chips, so we must take advantage of this opportunity and cooperate with them to make China's autonomous driving chips."
Shi Jianhua, deputy secretary-general of the China Electric Vehicle 100 Association, told China News Weekly that it is feasible for China's auto market to reach 40 million annual sales in the future, driven by exports. "I think that in the future, more than 20% of Chinese auto products will be marketed overseas, which will lead to an increase in overall sales."
"The status and role of the automotive industry, especially the new energy vehicle industry, in the national economy have been unprecedentedly improved. In Zhang Yongwei's view, the internationalization of China's new energy vehicles will become a bright spot in 2024. "A big economic country must have a supporting industry as a pillar, new energy vehicles deserve it, and the economic development of next year will depend on the automobile industry."
"Many new technologies may be the first to be applied in China's automotive industry, which is a global bellwether, and the first launch of new models in China is also a bellwether. "This is a sign of representation, and the Chinese market may define what the next generation of cars will be."
Drive into the traditional "highlands" of automobiles
After achieving the first place in the export volume of automobiles, the quality of exports has also become the focus of the industry. It is generally believed that the export quality in the context of China's automobile market has two basic meanings: one is to see whether the export destination is Europe, America, Japan and South Korea and other automobile powers, only to conquer these "highlands", in order to prove that China's automobile industry has achieved the world's leading;
At present, most of the cars exported by China are gasoline and diesel vehicles, and most of the new energy vehicles are for Europe and Southeast Asia. Objectively speaking, there is a huge demand for new energy vehicles in the European and American markets. According to the plan, two-thirds of the new cars sold in the United States by 2032 will be electric. The European Union is even more ambitious, wanting all new cars sold to be electric from 2035 onwards. The EU's stringent emission regulations are an important factor driving the market shift to electric vehicles, providing market opportunities for Chinese brand electric vehicles.
Customs data shows that in the first seven months of 2023, China's new energy vehicle exports to the EU increased by 112% year-on-year, an astonishing increase. This increase is even more significant compared to 2021, with a 361% increase in export volumes. According to the European Commission, China's share of electric vehicles sold in Europe has risen to 8% and is expected to reach 15% by 2025. But it should not be overlooked that there are indeed obstacles to entering Europe and the United States – they do not want to import electric vehicles from China.
But for Chinese car companies, being able to enter the European and American markets and build factories is equivalent to a proof of their own strength.
Lu Fang, CEO of VOYAH Automotive, said that in terms of overseas markets, VOYAH is focusing on the European market. "VOYAH has a presence in Norway, Denmark, the Netherlands, Finland and other countries. Next, we will expand into other markets of Europe's traditional automotive powerhouses. Lu Fang told China News Weekly, "If Chinese car companies want to truly enter the European market or even the global market, they need to integrate into local users, policies, regulations, and living environments, and also participate in local economic development to create certain benefits for local people, which may be a more reasonable route."
On December 22, 2023, BYD announced that it will build a new energy vehicle production base in Szeged, Hungary. This is the first passenger car plant built by a Chinese automaker in Europe. In addition, BYD has set up a large-scale production base complex consisting of three factories in the city of Kamassari, which is expected to be operational in 2025. SAIC, Changan Automobile and Great Wall Motor are also interested in building factories in Europe. In July 2023, SAIC Motor announced that it would build a production plant in Europe, and is currently working on site selection. Great Wall Motor also said that it has started the site selection of a factory and R&D center.
In addition, in 2023, some new EV manufacturers will begin to cooperate with international car companies to complete the international layout. For example, the cooperation between Xpeng and Volkswagen, the cooperation between Leap and Stellantis Group, etc. Leapmotor will rely on Stellantis Group's layout in the European market to increase sales in overseas markets. "The C10 will be the first model to be introduced overseas through Leapmotor International, a joint venture with the Stellantis Group. In the future, relying on the global business network of Stellantis Group, Leapmotor is expected to accelerate the opening of the international market. The relevant person in charge of Leapmotor told China News Weekly, "Leapmotor does not have blind expectations for overseas sales to increase quickly, because it takes process and time."
Wu Qiang, co-president of Leapmotor, also said frankly: "Don't think about overseas expansion so easily, what we see are the market challenges brought by different cultures, politics, regions and consumer characteristics. ”
Above: BYD's electric bus about to go into operation in the southern Finnish town of Espoo on August 10, 2021. Middle: Buyers learn about China's new energy vehicle products at the Canton Fair New Energy and Intelligent Connected Vehicle Exhibition Area on April 15, 2023. Below: On November 13, 2022, in Bali, Indonesia, 300 new energy vehicles of SAIC-GM-Wuling were used as the official vehicles of the G20 Summit to provide daily commuting services for delegations and the organizing committee. Photo/Xinhua
Beware of countermeasures in the international market
"They were ahead of us and even exceeded expectations. Honda President Toshihiro Mibe said that during the pandemic, when the world was largely cut off from China due to travel restrictions and quarantine measures, China's electric vehicles have made great strides. He also admits that Honda is lagging behind in the global EV race.
The 2023 Shanghai International Auto Show provides an opportunity for overseas executives to visit China on a large scale for the first time after the pandemic. It was also at that time that the international market really had a three-dimensional and comprehensive understanding of China's current development in the field of new energy vehicles. Talking about the trip to the Shanghai Auto Show, Hiroki Nakajima, CTO and vice president of Toyota Motor Corporation, was deeply touched. He said that in the past few days in Shanghai, he has re-felt the rapid development and changes in China, and he is very shocked by China's new technological development.
If this time China's new energy vehicles have brought the touch to the world in China, then at the 2023 International Auto Show (IAA) held in Munich in September of the same year, Chinese car companies have directly entered the foreign base camp and brought full touch to the European market. China's exhibitors include not only BYD, AVATAR, LEAP, CIALIS, SAIC MG, XPENG and other vehicle manufacturers, but also upstream and downstream suppliers of new energy vehicles such as CATL, EVE, Horizon, Black Sesame and ECARX.
So much so that some European media lamented that the IAA has become an "international auto show for Chinese". German Chancellor Olaf Scholz even shouted to German automakers during the IAA: "You should be motivated, not intimidated." Olaf Scholz is not taking it lightly to appease the emotions of the auto giants, but also threw out an 110 billion euro incentive plan to support the development of the German electric vehicle industry.
The rapid rise of China's new energy vehicles has stimulated the sensitive nerves of traditional automobile powers in Europe and the United States to a certain extent, and in order to maintain their own status, the disguised suppression of China's auto exports has also followed.
Shortly after the conclusion of the IAA, the European Union announced that it would launch a countervailing investigation into Chinese electric vehicles. European Commission President Ursula von der Leyen said in her fourth State of the Union address to the European Parliament: "The global electric vehicle market is flooded with affordable Chinese cars that are low because of huge state subsidies, which are distorting our market." "In October 2023, the European Commission's anti-subsidy investigation procedure for electric vehicles in China was officially opened, and the anti-subsidy investigation was determined to be launched against three Chinese car companies, BYD, SAIC and Geely Automobile.
After the news of the EU countervailing investigation, Li Yongping, president of the European Ningbo Chamber of Commerce and a member of the Italian Central Government's Task Force on China Affairs, held an emergency meeting with Meilin's European sales partners. In an interview with China News Weekly, he said, "China's high-quality and low-cost products are sold overseas, which has caused some overseas people to worry. In the future, Chinese automobiles will not only go overseas for their products, but also build factories overseas. The core raw materials and core components are still in China, and at least the assembly plant can be opened in Eastern Europe. We must go to the world with a more open and inclusive attitude."
The United States has also introduced the Inflation Reduction Act. According to the bill, starting in 2024, battery components produced by foreign entities such as China, Russia, North Korea, and Iran will not be eligible for consumer purchase subsidies for export to the United States for use in clean energy vehicles, including electric vehicles and clean fuel vehicles. In addition to the Inflation Reduction Act, the United States has also introduced the Bipartisan Infrastructure Act, the CHIPS and Science Act, and so on. These bills are aimed at curbing the development of Chinese new energy vehicles in the United States, while stimulating the development of new energy sources in the United States. The French government has also announced that from January 2024, France will introduce new cash incentives to help consumers buy electric vehicles, aiming to support the French and European car manufacturing industry to compete with Chinese rivals.
"Although the competition between the economies of Europe, the United States and Japan is also fierce, they have relatively consistent interests relative to inhibiting China's upward breakthrough, and we must have a clear understanding of this. Wang Qing, deputy director of the Institute of Market Economy of the Development Research Center of the State Council, said bluntly at the conference on the international development of the automobile industry, "the next step will be to face more investment and market barriers, mainly through national security, various types of review, etc., to set up barriers to investment, the global integration of important innovation resources, and the export of new energy vehicles in the mainland through carbon footprint."
Wang Qing is worried, "We are not fully prepared to deal with the carbon barrier now." For example, in response to the European Battery Act, there are still many shortcomings and obstacles in the use of battery recycled materials, our waste battery recycling system, the import of recycled materials and related resources."
"The mainland is more about supply chain costs and capacity advantages, in other words, we just have a window of time, in which everyone is trying to find change, Europe is attracting a large number of battery industry chains in Central European countries such as Hungary, and the United States is doing similar things. Wang Qing believes that the technical threshold of the mainland in the field of new energy vehicles needs to be improved. "We must try our best to prevent the substitution strategy of 'A-AB-B' from being realized, and we must try our best to improve the technical level, the depth of cooperation, improve the ability to wrap up, and reduce the possibility of being replaced."
Avoid internal and external wars, and learn to go to sea in groups
Since China has rapidly become the largest exporter of automobiles in just a few years, its own experience in going overseas is still very limited. The experience of many traditional automobile powers in going overseas has become a "textbook" that can be learned.
Zhang Yongwei believes that the internationalization path of China's automobiles, in addition to trade and export, should also be local investment, local production, and local sales. "In the future, 'selling real estate' will be the main model, just like Volkswagen and Honda build factories in China, produce in China, and sell in China."
"Overseas production is the main way to resolve the contradictions of overseas development. In Zhang Yongwei's view, the international development of automobiles cannot take the road of photovoltaics, "photovoltaic is mainly trade, easy to be dumped, countervailed." Automobiles have to learn from the Japanese and Germans, that is, to build factories in the local area, produce them locally, and sell them locally, otherwise they will get caught up in more complicated trade disputes."
In Wu Qiang's view, how to choose the export of vehicles and localized manufacturing is actually an economic account. Exports have import tariffs and freight, which take a long time, while local manufacturing has the advantage of shorter routes, avoiding tariffs, being closer to consumers, and shortening the delivery cycle. "Each has its own advantages and disadvantages, and in the end, we must calculate the economic account, which is cost-effective, and we will do which." For example, in order to get a government subsidy of 5,000 euros, consumers in some countries have requirements for localization, "In order for consumers to enjoy a government subsidy of 5,000 euros, we will also consider localized production."
Zhang Yongwei reminded that in the process of Chinese cars going to sea, it is necessary to pay attention to avoid re-taking the old road of motorcycle going to sea and encountering setbacks. Around 2000, Chinese motorcycles entered Vietnam and quickly surpassed Japanese motorcycles, with a market share of 80%. However, in less than three years, the market share of Chinese motorcycles in Southeast Asia has plummeted, and Japanese motorcycles have quickly regained the market that has been seized by Chinese motorcycles. Today, the market share of Japanese motorcycles has once again exceeded 95%, while the market share of Chinese motorcycles has been less than 1%.
"Motorcycles are just a local factory, but not localized, this is just a company in Vietnam that has drifted away from China. Zhang Yongwei said, "Localization is to try to make joint ventures with others." For example, when German companies come to China, they actually cooperate at the capital level, and localization is not a purely foreign-funded company, but a local company."
"In the past, traditional automobile products have been exported for more than ten years, and they have also experienced problems such as 'fighting alone and not cooperating with each other'. Shi Jianhua believes that now Chinese cars can enter the European Union, a country with a strict access system for products, indicating that the product is intrinsic enough, "but we still lack the spirit of going to sea together, sharing overseas resources and collaborating to go to sea, and jointly supporting going out."
In this regard, Japan provides a high-quality model sample. "There's a commercial establishment in front, like Mitsubishi, Mitsui, Toyota Tsusho, Toyota Motor, and its host bank. This trading company model is a package, and the success rate of internationalization is very high because the synergy is very good. Zhang Yongwei said that we are currently a manufacturing enterprise going overseas, and there is a lack of a similar comprehensive trading company model, "the comprehensive trading company model is also very important in the development of China's automotive industry going overseas, and it is a new model that needs to be studied."
"The export of Japanese and South Korean automobiles to the world is supported by consortiums, logistics, and finance, not one company doing it, not one person fighting. In Shi Jianhua's view, Chinese cars can refer to South Korea's export experience in the past.
"Now it is easy to fight internally and externally, develop in a pile, rush to the top, and do not pay attention to the rules, which is difficult to avoid. Zhang Yongwei is a little worried that there are very few successful cases in the industry of uniting to go to sea, and there are no household appliances, motorcycles, photovoltaics, and machinery and equipment. "The key is to change our approach, to convince people to really become a local company, and not to go through the trade model."
"Now, although many companies have achieved 'going global', there are also many enterprises that are passive, especially a large number of small and medium-sized supporting enterprises. In this industrial chain, if you don't follow the ideas of European manufacturers, most of the market share will be lost, so you will passively go overseas. Wang Qing said.
"We should look at the international market rationally, and do healthy competition guided by real product quality and user value, so as to truly form a healthy and good image of China's automobile reputation. Otherwise, any Chinese brand that goes wrong there represents a Chinese car, which is the last thing we want to see. Li Xueyong said that many foreign markets are Chinese brands competing with Chinese brands, "I think everyone should be cautious and optimistic, to be healthy, long-term development of the export system."
McKinsey previously helped a Chinese car company to do research on going overseas in Europe, and at that time, it covered the logo of the Chinese car company and put it in a row with all European and American cars for everyone to choose. Guan Mingyu, a global managing partner at McKinsey, said that due to the outstanding design of this Chinese car, the number of people choosing this model is much higher than that of other brands. However, after informing the origin in advance, the number of Chinese brands selected has dropped sharply. "More than 10 years ago, the overall quality of some Chinese car companies going overseas, including safety performance, left some shadows on the European market. Guan Mingyu said.
In addition, even if you have a large amount of money to build a factory overseas, you may encounter a variety of unexpected challenges. In August 2022, CATL announced plans to invest 7.34 billion euros in the construction of a battery plant in the small town of Mikepércs in Debrecen, which encountered many setbacks.
How to integrate into the local community and how to do a good job of internationalization is a complex issue. Wu Songquan, senior chief expert of the China Automotive Center and chief engineer of the China Automotive Strategy and Policy Research Center, believes that although China's total auto exports are huge, its share in most single markets is relatively small. There are many Chinese auto brands, and compared with multinational brands such as Europe, the United States, Japan and South Korea, they have not achieved the same status.
"From a global point of view, China's new energy vehicles change lanes first, we have gone a few years first, and others may be a few years slower. Zhang Yongwei said frankly, "But whether we are a new energy vehicle power, whether we have turned the first-mover advantage into the development advantage of the industry, we cannot be blindly optimistic at present."
Published in the 1125th issue of China News Weekly magazine on January 15, 2024
Magazine title: China's auto exports leap to the world's first "volume" out of the report card
Reporter: Liu Shanshan Zheng Yu