This year, China's automobile exports are expected to reach 4.8 million, ranking first in the world for the first time. While the export market is soaring, there are also complex challenges such as market risks, barriers, and geopolitics. Only by adhering to long-termism, accelerating manufacturing to go overseas, and laying out the global industrial chain can Chinese automobiles achieve steady and far-reaching progress on the road to sea.
The Ministry of Commerce held a press conference on December 21 on the official website of the Ministry of Commerce.
A spokesperson for the Ministry of Commerce said at a press conference held on December 21 that it was seriously concerned about the list of electric vehicle subsidies recently released by France**, believing that this list constitutes discrimination. The new version of the subsidy list in France includes 78 models, which can receive subsidies of up to 7,000 euros per vehicle. However, the SAIC MG 4, which is in the top five selling companies in France, and the Tesla Model 3 and Renault Dacia Spring produced in China are not included in the list. Previously, France's 1 3 electric vehicle subsidies flowed to electric vehicles produced in China, and France's Macron had expressed hope that the funds would not benefit Chinese automakers.
The MG 4, which sells well in France, is excluded from the list of subsidies from the network.
France's new subsidy policy is just a microcosm. Guo Fang, director of the third export division of the Ministry of Commerce's ** Relief Investigation Bureau, said that the European Union has launched a countervailing investigation on China's electric vehicles on October 4 this year, and the United States, Turkey and other countries have also imposed high tariffs on China's electric vehicles. The United States, France and other countries have also introduced new versions of the subsidy policy for new energy vehicles, such as the United States stipulates that the premise of enjoying the tax credit is that the electric vehicle is assembled in North America, the raw materials come from the United States or countries with free agreements with the United States, and battery components are produced and assembled in North America.
The EU launched a countervailing investigation into Chinese electric vehicles from the Internet.
In the case of countervailing investigations, for example, the EU argues that Chinese electric vehicles are being distorted by the fact that they are being depressed by large state subsidies**. In this regard, people in the automotive industry agree that the EU's statement is completely inconsistent with the facts.
Zhang Hong, secretary general of the new energy vehicle branch of the China Automobile Dealers Association, said that the subsidy for a car in France and Germany is 6,000-8,000 euros, which is 60,000 to 80,000 yuan, while our previous subsidy is 20,000 to 40,000 yuan, which is only half of it. China's subsidies have stopped on December 31, 2022, but they are still subsidizing, and it is very unfair to start an investigation into our subsidies at this time. The EU's actions are motivated by two motives, one geopolitical and the other local protection.
Chinese electric vehicle factories from the network.
In recent years, China's electric vehicles have achieved extremely high cost advantages and created a number of internationally competitive products by virtue of technological innovation and a strong industrial chain.
According to the UBS report, Volkswagen ID models produced in China are exported to Europe in parallel by dealers, and the freight and tariffs are also lower than the same locally produced models**1 3. Last year, Chinese brands accounted for 8% of the EU electric vehicle market, and this year, the total sales of new energy vehicles in Europe are 1.41 million units, and the proportion of Chinese manufacturing is close to 1 4. It is the market performance of China's new energy vehicles that makes the EU eager to make unprecedented protection.
Sun Xiaohong, secretary general of the automobile branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, said that historically, the automobile industry has never launched an anti-dumping and anti-subsidy investigation, because this product is particularly complex. There are at least 10,000 parts for new energy vehicles, and it is impossible to judge the cost composition and division of the vehicle and the first, second, and fourth-level merchants of this industrial chain.
BYD signed a contract with WHA Group to build a factory in Thailand Photo courtesy of the interviewee.
In the context of the era of anti-globalization, China's auto exports will inevitably face more first-class rules and geopolitical challenges. Chinese automakers are speeding up the pace of building factories overseas, bypassing risk variables such as transportation costs and tariff barriers, and pushing Chinese automobiles from vehicle exports to the stage of global manufacturing.
BYD's first overseas passenger car plant will start production next year, with an annual production capacity of 150,000 units in Rayong Province, Thailand, mainly for the ASEAN market, mainly in Thailand. Huang Xiaolin, deputy director of international ** affairs and public relations of BYD's brand and public relations department, said that the manufacturing base in Brazil will be put into operation by the end of 2024. It is a large-scale integrated production base composed of three factories, the first factory is a chassis for electric buses and trucks, the second is a production plant for new energy passenger vehicles, and the third is a raw material processing plant for lithium iron phosphate batteries. The entire Brazilian plant mainly serves the Americas region, providing about 5,000 local jobs and promoting the development of local talent.
Great Wall Motor's overseas factories from the Internet.
In the era of fuel vehicles, SAIC, Geely, Great Wall and other enterprises have already deployed production in Russia, Brazil and Malaysia. In the new round of electric vehicles going overseas, the overseas factories of Chery, Changan, Great Wall, GAC, JAC, Nezha and other car companies are accelerating the construction. Due to the long upstream and downstream industrial chain of new energy vehicles and high coordination requirements, it is imperative to localize the production of parts and components.
Qiu Kaijun, a critic of new energy vehicles and editor-in-chief of "Electric Vehicle Observer", said that first, if the battery, motor, and electric drive are transported for long distances, the logistics cost is very high, and the cost will definitely be reduced next to the vehicle manufacturer. Second, the production of new energy vehicles is more closely coordinated, for example, the vehicle manufacturer put forward a request, parts companies to respond quickly, adjust some matching processes and parameters, or everyone to do some production capacity rhythm cooperation, etc., so China's new energy vehicle parts enterprises will also go out in a large area.
Foton Motor's overseas plant Photo courtesy of the interviewee.
Overseas investment in automobiles involves the interpretation of large-scale policies and rules and overseas consumer research, which is a great challenge for a single car company.
Lu Wenliang, a distinguished researcher in the automotive industry at the Industrial Science and Technology Innovation Center of the Strategic Advisory Institute of the Chinese Academy of Sciences, believes that the foreign investment environment will be limited by local laws and regulations, culture and national conditions, and there is strong uncertainty. In particular, the vehicle project has a relatively large investment and a long cycle, which requires the support of laws and regulations, compliance consulting, and environmental protection. At the national level, there can be some overseas organizations to help Chinese car companies get professional support for some common problems.
This year, China's main exporter of automobiles is the All-China Passenger Association.
The export market itself is complex and changeable, and there are certain fortuitous factors. This year, Russia has become China's largest destination for car exports, with a growth rate of 600%, and the subsequent market trends remain to be seen. In addition, with the recovery of European production capacity, it is inevitable to increase the number of new energy vehicles and launch the first in the international market.
**Wang Qing, deputy director of the Institute of Market Economy of the Development Research Center, said that the export data is now sold out in the accounting sense, but it is not delivered in the terminal market, so this part of the circulation link and the inventory of dealers, if it cannot be sold out quickly, will have an impact on further procurement.
China's Automobile Export Data China *** Association.
In the field of after-sales service, some brands do not have enough accessories and service systems in overseas markets, resulting in maintenance time exceeding the requirements of local consumers, and even causing the first management department to reflect the situation to the relevant ministries and commissions in China.
Wang Meng, deputy secretary-general of the Beijing Automobile Dealers Industry Association, said that at the beginning of the 21st century, China's motorcycle defeat in Vietnam is a lesson from the past. At that time, the market share of Chinese motorcycles in Vietnam was almost zero, and it instantly reached more than 90% of the share, but due to the imperfect quality system and after-sales service, it retreated from this market, resulting in the rapid decline of Chinese motorcycle brands in the global reputation. China's new energy vehicles can no longer take this road, so not only to export products, but also to the dealer system, the first chain system, the spare parts system, the after-sales system, the quality feedback system and other overall supporting out.
Overseas best-selling brands MG and Polestar from the Internet.
Although the technical strength and product strength of Chinese automobiles have gradually been recognized by the international market, most of the brightest export sales such as MG and Polestar have the genes of "foreign brands", and Chinese car companies still need to work "brand power".
Lu Wenliang, a distinguished researcher in the automotive industry of the Industrial Science and Technology Innovation Center of the Strategic Consulting Institute of the Chinese Academy of Sciences, introduced that more advanced technology is needed to create several flagship products, which will be strengthened after market certification and consumer recognition. This process is not achieved overnight, it needs to have one to two generations, in the next 5-10 or 10-15 years, it is possible to establish a high-end Chinese brand.
Car exports from the web.
Looking back on the 45 years of reform and opening up, China's automobile industry has gone from introducing foreign advanced technology to realizing independent innovation, and now leads the development of new energy vehicles and exports products and technologies to the world.
Chai Zhanxiang, assistant president of the China Council for the Promotion of Automobile International Trade, said that the development has a history of nearly 140 years, including the contributions of Germans, Americans and Japanese. Now electrification and intelligence are the business cards of China's manufacturing, and they are also the backbone of the transformation of the entire automotive industry.
For a long time, the competition in the automobile industry is not a "100-meter sprint", but a "marathon". As Chinese car companies go overseas and lay out the global industrial chain, they will also forge world brands and global enterprises in broader market competition.
Reporter: Qi Tian
Editor: Wang Chenchen