Home /News /international news /China leaps to become the world's top exporter of automobiles: surpassing Japan with 5 million vehicles, and new energy has not yet been fully developed /
China leaps to become the world's top exporter of automobiles: surpassing Japan with 5 million vehicles, and new energy has not yet been fully developed
2023-12-15
At the 2023-2024 China Economic Annual Conference held this morning, Han Wenxiu, Deputy Director in charge of daily work of the Central Finance Office and Director of the Central Agriculture Office, introduced that in 2023, China's automobile exports will exceed 5 million vehicles, setting a new historical record.
5 million vehicles, which will also set a new record for the annual export scale of a single country in the past 30 years.
"The global competitiveness of domestic industries has improved," Cui Dongshu, Secretary General of the China Association of Automobile Manufacturers, told Shenwang. In the past two years, the Chinese automotive industry has been accelerating the construction of its export system.
Establishing a carbon footprint management system for new energy vehicles and batteries, building overseas factories, and collaborating with overseas enterprises to lay sales channels, China's new energy vehicle industry has taken the lead in the world. Countries and enterprises that want to complete energy transformation as soon as possible will also think of Chinese car companies as soon as they seek cooperation.
"Middle Eastern countries are now eager to build the new energy vehicle industry chain, and the senior officials of the Middle Eastern government have placed more importance on cooperation with China and the transformation of new energy vehicles. Emma, a special consultant for the transformation of new energy vehicles in the Middle East, told DeepNet that the Abu Dhabi Investment Bureau in the United Arab Emirates alone has seen its investment proportion in the Chinese market soar from 4.5% (at the end of 2019) to 22.9% (in the first quarter of 2023) in just over three years.".
China's automobile exports have entered a new stage, but from the perspective of export structure, it is still far from the time to truly exert force. The advantage battlefield of China's automotive industry lies in new energy vehicles, and now nearly 80% of China's exported cars are still fuel powered models.
From 2021 to now, when the production capacity of overseas automobile enterprises is limited under the influence of the global epidemic, and the Russia-Ukraine conflict has led to the withdrawal of European, American, Japanese and Korean automobile enterprises from the Russian automobile market, SAIC, Chery, Great Wall, Geely and other domestic traditional automobile enterprises, by virtue of overseas factories and sales channels operated for decades, quickly make up for the vacant fuel vehicle market.
Among them, SAIC Group has maintained the first place in domestic vehicle exports for 7 consecutive years, and Chery Group has maintained the first place in Chinese brand passenger vehicle exports for 20 consecutive years.
In the market for gasoline powered vehicles, new energy vehicles are seizing the high ground, and China is moving towards becoming the world's number one automobile power, causing anxiety in European and American countries with a century of automotive industry accumulation, and even "strict prevention and defense" against China.
"Bombing electric vehicles"
From January to October 2023, China's share of new energy passenger vehicles in the world reached as high as 62%. With the increase in the proportion of sales of new energy vehicles in China, the international brand appeal of Chinese car companies is also strengthening.
J. D.Power Japan President Hiroshi Yamamoto believes that pure electric vehicles will not immediately take away all market share, but through various surveys, it has been found that pure electric vehicles are forming their own brand and brand appeal. "This is very scary and may affect the sales of gasoline vehicles," he said
The rise of Japan's and China's automotive industries is similar, starting with assembly business, exchanging technology with the market, almost being monopolized by foreign car companies in the local market, and then seizing the opportunities brought by the oil crisis and relying on the accumulated automotive industry chain through assembly and OEM to enter the international market, which has been thriving to this day.
Prior to this year, Japan was the world's largest exporter of automobiles. In 1980, Japan surpassed the United States for the first time with a production volume of 11.042 million vehicles (8.09 million vehicles), becoming the world's largest automobile producer and exporter, completely changing the automotive industry pattern centered around Europe and America. Japan remained the world's number one automobile power for 42 years.
Japanese car companies are well aware of the enduring appeal of automotive brands. For over forty years, Japanese cars have always been the preferred model for American families, and until the first half of 2023, Japanese cars still accounted for almost half of the top ten best-selling models in North America.
Although Japanese car companies have shaken the global automotive industry in the era of fuel vehicles, they also have to pay for their strategic decision-making mistakes in the era of new energy vehicles.
At a time when China is making every effort to transform into new energy vehicles, Japanese car companies represented by Toyota are "bombarding electric vehicles". The then president of Toyota Group, Akio Toyoda, is extremely pessimistic about electric vehicles. He believes that electric vehicles are only a short-term shortcut to quick results, and that hybrid and hydrogen fuel cell routes are the long-term path to take.
The market is voting with real gold and silver, and Toyota has broken through in the electrification market. Its two electric vehicle models launched in China only sold 31100 units in the first nine months, while BYD's monthly sales have reached 200000 units.
Akio Toyoda admitted that he couldn't understand electric vehicles, and after 14 years at the helm of Toyota Group, he stepped down as president in April of this year. When Akio Toyoda stepped down, he admitted that he had a strong passion for cars, but he was a conservative person.
"I am the older generation and have also felt the limitations of being a car maker. I believe it is necessary to retire in the new era."
According to data from the Japan Association of Automobile Manufacturers and the China Association of Automobile Manufacturers, the scale of pure electric vehicle exports between Japan and China has differentiated due to different strategies since 2018.
The proportion of Chinese electric vehicles in global electric vehicle exports has increased from 4.2% (2018) to 35% (2022); However, in Japan, it decreased from 24.5% (2018) to 9.3% (2022).
J. D.Power Japan President Hiroshi Yamamoto believes that pure electric vehicles will not immediately take away all market share, but through various surveys, it has been found that pure electric vehicles are forming their own brand and brand appeal. "This is very scary and may affect the sales of gasoline vehicles," he said
The rise of Japan's and China's automotive industries is similar, starting with assembly business, exchanging technology with the market, almost being monopolized by foreign car companies in the local market, and then seizing the opportunities brought by the oil crisis and relying on the accumulated automotive industry chain through assembly and OEM to enter the international market, which has been thriving to this day.
Prior to this year, Japan was the world's largest exporter of automobiles. In 1980, Japan surpassed the United States for the first time with a production volume of 11.042 million vehicles (8.09 million vehicles), becoming the world's largest automobile producer and exporter, completely changing the automotive industry pattern centered around Europe and America. Japan remained the world's number one automobile power for 42 years.
Japanese car companies are well aware of the enduring appeal of automotive brands. For over forty years, Japanese cars have always been the preferred model for American families, and until the first half of 2023, Japanese cars still accounted for almost half of the top ten best-selling models in North America.
Although Japanese car companies have shaken the global automotive industry in the era of fuel vehicles, they also have to pay for their strategic decision-making mistakes in the era of new energy vehicles.
At a time when China is making every effort to transform into new energy vehicles, Japanese car companies represented by Toyota are "bombarding electric vehicles". The then president of Toyota Group, Akio Toyoda, is extremely pessimistic about electric vehicles. He believes that electric vehicles are only a short-term shortcut to quick results, and that hybrid and hydrogen fuel cell routes are the long-term path to take.
The market is voting with real gold and silver, and Toyota has broken through in the electrification market. Its two electric vehicle models launched in China only sold 31100 units in the first nine months, while BYD's monthly sales have reached 200000 units.
Akio Toyoda admitted that he couldn't understand electric vehicles, and after 14 years at the helm of Toyota Group, he stepped down as president in April of this year. When Akio Toyoda stepped down, he admitted that he had a strong passion for cars, but he was a conservative person.
"I am the older generation and have also felt the limitations of being a car maker. I believe it is necessary to retire in the new era."
According to data from the Japan Association of Automobile Manufacturers and the China Association of Automobile Manufacturers, the scale of pure electric vehicle exports between Japan and China has differentiated due to different strategies since 2018.
The proportion of Chinese electric vehicles in global electric vehicle exports has increased from 4.2% (2018) to 35% (2022); However, in Japan, it decreased from 24.5% (2018) to 9.3% (2022).
"The Russian market is booming"
"The export markets in Central Asia and Russia have been very hot recently," a car import and export practitioner told Shenwang. "There are many factors that affect car exports, and prices will not account for too much. Car exports are greatly affected by geopolitical factors, and it depends on the import tax rates, market demand, cross-border transportation, and domestic production capacity of neighboring countries."
According to customs data, China's automobile exports remained at the million vehicle level from 2017 to 2020, and there was a breakthrough in 2021. Cui Dongshu believes that the breakthrough in automobile export sales and unit price is mainly due to the impact of the global pandemic and Tesla's domestic production.
After the outbreak of the COVID-19 pandemic in 2020, almost all automobile factories worldwide except for China have ceased production. According to media statistics, at least 120 automobile factories have temporarily closed.
The conflict between Russia-Ukraine conflict has reshuffled Russia, the top five automobile market in the world.
At the beginning of 2022, after the beginning of the Russia-Ukraine conflict, more than 20 European, American, Japanese and Korean car companies have successively withdrawn from the Russian market. Mercedes Benz sold its Russian subsidiary; Renault, Nissan, and Ford shed tears as they "sold assets in Russia for 1 yuan", resulting in a 30% drop in Renault's sales and Nissan's loss of nearly 5 billion yuan in the first half of 2022.
Moreover, European and American automotive component supplier giants have also suspended deliveries to the Russian market. A car involves hundreds or thousands of components, and if any one is missing, the entire car cannot be produced in compliance. The Russian automotive industry is almost paralyzed, making it difficult to find a single car.
Chinese car companies that have already established a presence in Russia are quickly filling the vacant markets of European, American, Japanese, and Korean car companies. In 2022, Russia ranked fifth in the total export volume of Chinese automobiles. By the first quarter of 2023, Russia had jumped to the top spot.
According to data from the China Association of Automobile Manufacturers, the sales growth rate of Chinese cars exported to Russia from January to October this year was as high as 611%. In the first three quarters of this year, six of the top ten Russian car sales brands were Chinese brands, with Chery, Great Wall Haval, and Geely ranking second, third, and fourth respectively, with year-on-year sales growth of 312%, 267%, and 302%.
After Russia, Chinese car companies have once again targeted Thailand, the largest car manufacturing country in Southeast Asia, this year. From January to October this year, the sales growth rate of Chinese cars exported to Thailand reached as high as 104%.
BYD has set up its first overseas passenger car production base in Thailand. In March of this year, BYD officially laid the foundation for its factory in Rayong Province, Thailand, with an investment of approximately 3.6 billion yuan. It is expected to start operation in 2024, with an annual production capacity of approximately 150000 vehicles.
GAC Aion established its Southeast Asian headquarters in Thailand this year; SAIC Group, Changan Automobile, and Great Wall Motors have all chosen to build factories in Thailand. This is because if car companies have factories in Thailand, the Thai government can provide them with an 8-year corporate income tax exemption, exemption from import taxes on key components by the end of 2025, and promise to subsidize the electricity costs of car companies' factories.
When Chinese new energy vehicle companies had not yet established global channels, domestically produced Tesla supported half of China's new energy vehicle exports.
In 2021, Tesla Shanghai SuperWorks contributed over 160000 overseas deliveries, accounting for 51% of China's new energy vehicle exports for the entire year, covering more than 10 countries in Europe, Asia, and more.
In 2022 and the first half of 2023, the proportion of domestically produced Tesla in China's new energy vehicle exports decreased to 40% and 34%, but domestically produced Tesla remains the backbone of China's new energy vehicle exports.
The rapid growth of China's automobile exports has even driven the development of the shipbuilding industry.
Shi Song, the head of the Marketing Department of Shanghai Anji Logistics Shipping International Business Department, revealed, "There is production capacity in China and orders from abroad, so it is difficult to transport now. If we rent a ship with 7000 parking spaces, the daily rent would reach $100000 (approximately RMB 710000)."
So, following the global buying of mines, car companies began to buy ships and build ships again.
As of August this year, almost all of the 170 pending orders for car transport ships worldwide came from Chinese automakers such as BYD and Chery, as well as European and Singapore shipping companies that transport cars to them. Daniel Nash, head of automotive transport ships at VesselsValue, a London based maritime data company, revealed.
You should know that before China began exporting cars in large quantities, there were only four orders for this type of ship each year.
On December 4th, BYD's Ro/Ro transport ship EXPLORER 1 completed its first 7-day trial voyage in Yantai, Shandong. Previously in November, China Shipbuilding Corporation's subsidiary, Guangzhou Shipbuilding International, undertook the construction of the first vessel of the BYD 7000 Dual Fuel Truck Transport Ship (PCTC) project in Nansha, Guangzhou.
BYD Ro/Ro transport ship EXPLORER 1
Automobiles are a large-scale industry, and it is about who can obtain the most market share. Nowadays, the growth of the domestic automobile market has slowed down. According to statistics from the China Association of Automobile Manufacturers, the year-on-year growth of passenger car sales from January to October this year was only 0.7%, and going abroad has become a necessary option for Chinese car companies.
But while Chinese car companies are expanding their territory, they also need to not forget to hold their ground.
Chery Chairman Yin Tongyue raised a serious question: "The domestic market is currently so competitive, but in fact, most car companies have not achieved profitability in new energy vehicles. We consume resources with each other, which is actually consuming our competitiveness and vitality. In the end, who will give up the Chinese market?"
"Take strict precautions and defend firmly"
On December 1st, the United States added new purchase discounts for pure electric vehicles (EVs). Starting from 2024, if Chinese battery components are used, this model will not be eligible for discounts; Starting from 2025, if important minerals from China are used, this model will not be eligible for discounts.
The definition of "Chinese products" in the United States is also very broad. Even 100% American funded enterprises that are influenced by the Chinese government may be considered "Chinese enterprises" and their products are defined as "Chinese products".
For example, Ford's wholly-owned power battery factory built in the United States at a cost of $3.5 billion (approximately RMB 25.1 billion) carries the risk of being defined as a "Chinese product", as the factory will receive technical support from Chinese power battery giant CATL.
The EU has launched a countervailing investigation into Chinese electric vehicles since September this year, intending to impose high tariffs on Chinese electric vehicles to protect local industries. European Commission President von der Leyen believes that the reason why Chinese electric vehicles are highly cost-effective is "because they have received huge national subsidies."
Due to their relatively complete charging infrastructure and superior electric vehicle policies, European Union countries have been selected as their first stop for domestic car making new forces such as NIO and Xiaopeng Motors.
At present, the top three pure electric vehicle market share in Europe is still dominated by European and American car companies (Volkswagen, Tesla, and Stellantis Group in the United States), but the market share of Chinese brands is continuously increasing.
"If you want to eat someone else's food, you can't smash their pot, and you also need to grow and share the harvest with them." Chery Group Chairman Yin Tongyue shared his views on the EU's anti subsidy investigation at Xuanyuan Academy: Europeans are big countries that eat car food, and if we compete for someone else's job, this is unacceptable to anyone else.
Chery has been going global for decades, and Yin Tongyue's important lesson is that in terms of internationalization, Chinese companies need to become local high-quality corporate citizens. "We need to learn to contribute in order to stay for a long time, not just for taking."
For the European Union and the United States, completely drawing a clear line with the Chinese automotive industry is also a way to harm the enemy by one thousand and self harm by eight hundred.
At present, the global electric vehicle industry is highly dependent on China, which holds the refining technology for the vast majority of key minerals in power batteries, and China's production of power battery packs accounts for about two-thirds of the world's total.
For example, among the 34 important raw materials used in batteries in the European Union, 11 of them are mined or processed from China as the largest source. The United States heavily relies on Chinese imports for lithium-ion batteries.
But while Chinese car companies are expanding their territory, they also need to not forget to hold their ground.
Chery Chairman Yin Tongyue raised a serious question: "The domestic market is currently so competitive, but in fact, most car companies have not achieved profitability in new energy vehicles. We consume resources with each other, which is actually consuming our competitiveness and vitality. In the end, who will give up the Chinese market?"
"Take strict precautions and defend firmly"
On December 1st, the United States added new purchase discounts for pure electric vehicles (EVs). Starting from 2024, if Chinese battery components are used, this model will not be eligible for discounts; Starting from 2025, if important minerals from China are used, this model will not be eligible for discounts.
The definition of "Chinese products" in the United States is also very broad. Even 100% American funded enterprises that are influenced by the Chinese government may be considered "Chinese enterprises" and their products are defined as "Chinese products".
For example, Ford's wholly-owned power battery factory built in the United States at a cost of $3.5 billion (approximately RMB 25.1 billion) carries the risk of being defined as a "Chinese product", as the factory will receive technical support from Chinese power battery giant CATL.
The EU has launched a countervailing investigation into Chinese electric vehicles since September this year, intending to impose high tariffs on Chinese electric vehicles to protect local industries. European Commission President von der Leyen believes that the reason why Chinese electric vehicles are highly cost-effective is "because they have received huge national subsidies."
Due to their relatively complete charging infrastructure and superior electric vehicle policies, European Union countries have been selected as their first stop for domestic car making new forces such as NIO and Xiaopeng Motors.
At present, the top three pure electric vehicle market share in Europe is still dominated by European and American car companies (Volkswagen, Tesla, and Stellantis Group in the United States), but the market share of Chinese brands is continuously increasing.
"If you want to eat someone else's food, you can't smash their pot, and you also need to grow and share the harvest with them." Chery Group Chairman Yin Tongyue shared his views on the EU's anti subsidy investigation at Xuanyuan Academy: Europeans are big countries that eat car food, and if we compete for someone else's job, this is unacceptable to anyone else.
Chery has been going global for decades, and Yin Tongyue's important lesson is that in terms of internationalization, Chinese companies need to become local high-quality corporate citizens. "We need to learn to contribute in order to stay for a long time, not just for taking."
For the European Union and the United States, completely drawing a clear line with the Chinese automotive industry is also a way to harm the enemy by one thousand and self harm by eight hundred.
At present, the global electric vehicle industry is highly dependent on China, which holds the refining technology for the vast majority of key minerals in power batteries, and China's production of power battery packs accounts for about two-thirds of the world's total.
For example, among the 34 important raw materials used in batteries in the European Union, 11 of them are mined or processed from China as the largest source. The United States heavily relies on Chinese imports for lithium-ion batteries.
Price butcher Tesla lowers prices, followed by BYD and others car brands, and a price war for electric vehicles begins
China's new energy vehicles actively expand into the European market
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