A Geely's Geometry C electric car is seen on display before the signing ceremony in Budapest, Hungary, on Nov. 4, 2022. Chinese automaker Geely Auto Group has entered the European Union (EU) market by signing an agreement with Hungarian car importer Grand Automotive Central Europe (GACE). (Photo by Attila Volgyi/Xinhua)
BEIJING, April 19 (Xinhua) -- Thanks primarily to the enhanced global competitiveness of domestic auto brands and the rapid development of new energy and intelligent connected vehicles, China's auto sector has achieved a "multi-fold" growth in exports in the first quarter of the year. In the first quarter of this year, China exported 994,000 vehicles, a year on year increase of 70.6 percent, with exports of NEV reaching 248,000 units, surging 110 percent year on year, according to the latest data released by General Administration of Customs (GAC).
Analysts predict that China's strong momentum in auto exports is likely to continue and strengthen in the rest of this year. However, creating international automotive brands will require a focus on local production, channel innovation, and improving service networks in overseas markets.
-- Impressive data from China’s auto industry
According to data from GAC, the export of electric passenger cars, lithium batteries, and solar cells increased by 66.9 percent in the first quarter this year, with a year on year increase of over 100 billion yuan, boosting the overall export growth rate by 2 percentage points.
This further highlights the driving force of China's auto industry, which is undergoing rapid development in the field of NEV. The impressive export figures demonstrate the global competitiveness of Chinese automotive brands, and bode well for the future of the industry.
Data released by the Ministry of Industry and Information Technology (MIIT) shows that in March 2023, China exported 364,000 vehicles, a year-on-year increase of 110 percent, with exports of new energy vehicles (NEV) up 390 percent year on year to 78,000 units.
China's auto production and sales increased 15.3 percent and 9.7 percent year on year to 2.584 million and 2.451 million units in March this year, respectively. Among which, the sales of NEV amounted to 654,000 units, up 34.8 percent year on year, according to MIIT.
On the specific export performance of Chinese automakers, among the top ten automakers in terms of exports, China’s leading NEV manufacture BYD exported 43,000 vehicles in the first quarter of 2023, hiking 12.8 times over the same period last year, while Anhui Jianghuai Automobile Group Co., Ltd. (JAC) saw exports up 97.1 percent year on year to 46,000 vehicles in the same period, according to GAC.
Experts pointed out that in recent years, Chinese auto companies have continuously developed overseas markets. Export has become one of the important engines supporting the growth of automobile sales. Lang Xuehong, deputy secretary-general of the China Automobile Dealers Association (CADA), said that China's auto export sales began to rise rapidly in 2021 and maintained this trend in 2022, reaching 3.111 million units, a year-on-year increase of 54.4 percent year on year.
"Chinese NEV is very competitive, and overseas markets are also quickly accepting them," said Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers (CAAM).
-- Chinese auto industry receives favorable policy boost
With the vigorous momentum of Chinese automotive companies expanding into overseas markets, various local governments in China are also rolling out favorable policies to provide more efficient and convenient logistics methods and reduce enterprise costs, helping domestic auto brands participate deeply in the international market.
Local transportation authority in Shenzhen, south China’s Guangdong Province recently released a draft scheme for the "Shenzhen Port Automobile Export Subsidy Plan," which provides encouraging policy for vehicles exported via Shenzhen Port by companies according to the number of vehicles they carried each year during 2023-2024.
On April 12th, a China-Europe freight train carrying cars worth around 40 million yuan departed from Wuhan, capital of central China’s Hubei Province, to destination in Russia. By executing simplified customs procedures, the train is expected to reduce transportation time by one to two days compared to previous trips.
Wuhan Asia-Europe Logistics Co., Ltd,the freight train operator, announced that since the freight service of the special train of Dong Feng Motor Corporation was launched on November 25th last year, the freight train has achieved regular operations. In order to further enhance the quality of the freight train, various transportation and logistics departments in Wuhan have collaborated to optimize the train clearance process and improve operational efficiency.
"Jilin Province provided important support in port coordination, transportation guarantee, export clearance, and other work," said Yang Dayong, Chairman of FAW Group Import and Export Co., Ltd., adding that in the first quarter of this year, the group witnessed vehicle exports surged 125 percent year on year to 15,000 units.
-- Chinese automakers speed up localization
"Intelligent electric vehicles may be an opportunity for Chinese brands to build world-class brands," said Wang Jun, President of Changan Automobile Group, adding that Chinese NEVs are expected to move towards a stage of higher efficiency and benefits.
An Conghui, CEO of Geely Automobile Holdings Ltd. and Zeekr Intelligent Technology Holding Limited, also emphasized the need for Chinese NEVs to enter the global market with more confidence and at a faster pace. Moreover, large-scale participation of Chinese new energy brands in international competition will further unleash innovation and growth vitality.
Lang Xuehong added that China is expected to achieve an export volume of nearly 5 million vehicles this year. However, the current production of domestic brands is still primarily for the local market with only around 10 percent of total output exported. To transition from simple automobile trade to building international automotive brands, it is necessary to research new markets and respect local cultures and market dynamics.
Since the second half of last year, several Chinese auto companies have been aggressively expanding their localized production, establishing marketing channels and continuously improving their service networks.
For example, BYD has set up more than 30 industrial parks worldwide, while BAIC Global has established assembly plants in nearly 10 countries and regions such as Pakistan, Myanmar, Türkiye, and Iraq. In addition, SAIC Motor has built a complete automotive industry value chain overseas, including innovation and Research and Development (R&D) centers, production bases, marketing centers, supply chain centers, and financial companies, with four vehicle production bases in Thailand, Indonesia, India, and Pakistan. (Contributed by Li Tangning, edited by Jiang Feifan with Xinhua Silk Road, 346129473@qq.com)
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