New energy vehicles sped out of the country

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On March 7, 2022, a car carrier carries a cargo of export commodities to Yantai Port, Shandong Province. (Photo by Visual China)
During the national two sessions, new energy vehicles have attracted much attention. The government work report stressed that "we will continue to support the consumption of new energy vehicles", and put forward policies to reduce taxes and fees, maintain the security and stability of the industrial chain and supply chain, and increase support for the real economy, including the new energy vehicle industry. At the meeting, many representatives and members made suggestions and suggestions for the development of new energy vehicles.
In 2021, China's auto exports achieved a remarkable performance, exceeding 2 million units for the first time, doubling the previous year, achieving a historic breakthrough. It is worth mentioning that the export of new energy vehicles showed explosive growth, with a year-on-year growth of 304.6%. What are the new characteristics of China's new energy vehicle industry that can be seen from the export data? In the context of global carbon reduction, where will the new energy vehicle industry "drive"? The reporter interviewed Xu Haidong, deputy chief engineer of China Association of Automobile Manufacturers, saic And Geely.
Since 2021, the export of new energy vehicles has performed well, with Europe and South Asia

becoming the main incremental markets
According to the China Association of Automobile Manufacturers, the export of new energy vehicles will reach 310,000 units in 2021, with a year-on-year growth of 304.6%. In January 2022, new energy vehicles continued the trend of high growth, achieving the outstanding performance of "431,000 units sold, with a year-on-year increase of 135.8%", ushering in a good start to the Year of the Tiger.

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Workers work in the final assembly workshop of BAIC New Energy Branch in Huanghua. Xinhua/Mou Yu
Saic Motor, Dongfeng Motor and BMW Brilliance will become the top 10 enterprises in terms of export volume of new energy vehicles in 2021. Among them, SAIC sold 733,000 new energy vehicles in 2021, with a year-on-year growth of 128.9%, becoming the leader in the export of Chinese brand new energy vehicles. In Europe and other developed markets, its own brands MG and MAXUS have sold more than 50,000 new energy vehicles. At the same time, byd, JAC Group, Geely Holding and other independent brands of new energy vehicle exports have also achieved rapid growth.
It is worth noting that the European market and South Asia market become the main incremental markets for China's new energy vehicle export in 2021. In 2021, the top 10 countries for China's neV exports are Belgium, Bangladesh, the United Kingdom, India, Thailand, Germany, France, Slovenia, Australia and the Philippines, according to data from the General Administration of Customs compiled by CAAC.
"Only with strong new energy vehicle products can we dare to enter the mature car market like Europe." Xu Haidong told reporters that China's new energy vehicle technology has basically reached the international advanced level, whether it is product appearance, interior, range, environmental adaptability, or vehicle performance, quality, energy consumption, intelligent application, have made comprehensive progress. "Exports to developed countries such as the UK and Norway show the competitive advantage of China's own new energy vehicle products."
The external environment also provides favorable conditions for Chinese brands to make efforts in the European market. In order to achieve carbon reduction targets, many European governments have announced carbon emission targets in recent years and increased subsidies for new energy vehicles. For example, Norway has introduced a number of policies to support the electrification transition, including exempting electric vehicles from 25% value-added tax, import duty and road maintenance tax. Germany will extend the new energy subsidy of 1.2 billion euros, which started in 2016, to 2025, further activating the new energy vehicle market.
Happily, high sales no longer depend entirely on low prices. The price of Chinese brand neVs in the European market has reached $30,000 per unit. In the first three quarters of 2021, the export value of pure electric passenger vehicles reached $5.498 billion, up 515.4 percent year on year, with the growth in export value greater than the growth in export quantity, customs data showed.

China's strong and complete industrial chain and supply chain are reflected in its automobile export performance
The production picture of two flourishing supply and marketing is being staged in production workshops throughout the country. In 2021, China's total imports and exports of goods reached 39.1 trillion yuan, an increase of 21.4% over the previous year, exceeding us $6 trillion at the annual average exchange rate, ranking first in global trade in goods for five consecutive years. Paid-in foreign direct investment reached 1.1 trillion yuan, an increase of 14.9% over the previous year and exceeding 1 trillion yuan for the first time.

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A worker produces battery trays for new energy vehicles at Shandong Yuhang Special Alloy Equipment Co., LTD. Xinhua/Fan Changguo
The supply capacity of overseas auto makers has declined in the past two years due to repeated epidemic, tight shipping, chip shortage and other factors. According to figures released by the Society of Motor Manufacturers and Traders (SMMT), car production in the UK fell 20.1% in January compared with the same month last year. According to the European Automobile Manufacturers' Association (ACEA), 2021 is the third consecutive year of declining passenger car sales in Europe, down 1.5 per cent year on year.
"Under the impact of the epidemic, China's supply advantage has been further amplified." Zhang Jianping, director of the Regional Economic Cooperation Research Center of the Academy of International Trade and Economic Cooperation of the Ministry of Commerce, said that The strong export of Chinese automobiles is due to the rapid recovery of China's economy from the impact of the epidemic. The auto industry has quickly restored production capacity and seized the great opportunity of recovering global market demand. In addition to making up for the product supply gap in the overseas auto market and stabilizing the global supply chain, China's auto industry has a relatively complete system and strong supporting capacity. Despite the epidemic, China still has a good risk resistance capability. Stable logistics and production and supply capacity provide a strong guarantee for The export of Chinese auto companies.
In the era of petrol-powered cars, China had a vast automotive supply chain, but a shortage of key components made it vulnerable to security risks. The rise of the new energy vehicle industry has given China's auto industry the opportunity to gain industrial dominance.
"Foreign traditional automobile companies are relatively slow in the development of new energy vehicles, unable to provide competitive products, while Chinese products can meet the needs of consumers, have cost advantages, and have good competitiveness. "Foreign car companies cannot make full use of their existing strong brands in new energy vehicle brands, so consumers in developed countries are also willing to accept Chinese new energy products." Xu Haidong said.

RCEP has brought policies to the east, a growing circle of friends, and Chinese auto companies are speeding up their overseas market layout
With its white body and sky-blue logo, BYD electric taxis are in harmony with the surrounding natural environment. From Bangkok's Suvarnabhumi International Airport, local man Chaiwa chose to take a BYD electric taxi. "It's quiet, it has a good view, and more importantly, it's environmentally friendly." A two-hour charge and a range of 400 kilometers -- Four years ago, 101 BYD electric vehicles were approved by Thailand's Land Transport Authority to operate locally for the first time as taxis and ride-hailing vehicles.
On January 1, 2022, the Regional Comprehensive Economic Partnership (RCEP) officially came into force, which is the world's largest free trade zone, bringing huge opportunities to China's auto export. As one of the fastest growing regions in the world for car sales, the emerging market potential of ASEAN's 600m people cannot be underestimated. According to the International Renewable Energy Agency, sales of neVs in Southeast Asia will increase to 10 million units by 2025.
Asean countries have issued a series of supporting measures and strategic plans for the development of new energy vehicles, creating conditions for Chinese auto companies to explore the local market. The Malaysian government announced tax incentives for electric vehicles from fy2022; The Philippine government has removed all import tariffs on components for electric cars; Singapore's government has announced plans to increase the number of charging points for electric vehicles from 28,000 to 60,000 by 2030.
"China actively encourages auto companies to make good use of THE RCEP rules, give full play to the trade creation effect and investment expansion effect brought by the agreement, and expand auto exports. As China's auto industry lifts restrictions on foreign ownership and speeds up the pace of 'going global', it is expected that Chinese auto companies will have closer cooperation with partner members based on global value chains, and preferential rules of origin will bring more diversified trade patterns and business opportunities to auto exports." Zhang Jianping thinks.
From Southeast Asia to Africa to Europe, Chinese automakers are expanding their overseas production lines. Chery Automobile has set up global R&D bases in Europe, North America, the Middle East and Brazil, and established 10 overseas factories. Saic has established three r&d innovation centers overseas, as well as four production bases and KD (spare parts assembly) factories in Thailand, Indonesia, India and Pakistan...
"Only by having their own overseas factories can The overseas development of Chinese branded car companies be sustainable." Xu Haidong analyzed that in recent years, the overseas investment mode of Chinese automobile enterprises has undergone important changes -- from the original trade mode and partial KD mode to direct investment mode. The mode of direct investment can not only promote local employment, but also improve the recognition of local consumers for brand culture, thus increasing overseas sales, which will be the development direction of "going global" of Chinese brand cars in the future.
Increase investment in RESEARCH and development, and cooperate with vehicle, parts and chip enterprises in innovation, striving to make Chinese cars use Chinese "core".
With new energy, big data and other revolutionary technologies booming today, the automobile, which has a history of more than 100 years, has ushered in a great opportunity for subversive change. In the field of new energy vehicles and intelligent network connection, with years of efforts, China's auto industry has basically reached the mainstream products and core technologies with the international level of synchronous development, and international mainstream enterprises on the same stage competition level.
However, for a period of time, the problem of "lack of core" has been plaguing China's auto industry, which has affected the improvement of output and quality to a certain extent.
On February 28, Xin Guobin, vice minister of The Ministry of Industry and Information Technology, said at the press conference of the State Information Office, the Ministry of Industry and Information Technology will build an online supply and demand platform for automotive chips, improve the upstream and downstream cooperation mechanism of the industrial chain, and guide vehicle and component enterprises to optimize the layout of the supply chain; Reasonably arrange production, help each other, improve the efficiency of resource allocation, minimize the impact of lack of core; We will further support collaborative innovation among vehicle, component and chip manufacturers, and steadily and orderly increase domestic chip production and supply capacity.
"According to the industry's judgment, the chip shortage will result in depressed market demand for approximately 1.5 million units in 2021." Yang Qian, deputy director of the Industry Research Department of The China Association of Automobile Manufacturers, believes that with the gradual effect of the international chip market regulation mechanism, under the joint efforts of the government, oemakers and chip suppliers, chip localization alternatives have been gradually implemented, and chip supply is expected to be eased to some extent in the second half of 2022. At that time, pent up demand in 2021 will be released and become a positive factor for the growth of the auto market in 2022.
To enhance independent innovation ability, master core technology and make Chinese cars use Chinese "core" is the direction of Chinese auto companies.
"In 2021, our strategic layout of the first domestic high-end intelligent cockpit chip with 7-nanometer process was released, filling the gap in the field of the main chip of the high-end intelligent cockpit platform independently designed by China." Relevant person in charge of Geely Group told reporters that Geely has invested more than 140 billion yuan in r&d over the past decade, with more than 20,000 design and r&d personnel and 26,000 innovation patents. Especially in the satellite network construction part, geely's self-built high-precision earth-orbit satellite navigation system has completed the deployment of 305 high-precision space-time reference stations, and will achieve "global no-blind zone" communication and centimeter-level high-precision positioning coverage in the future. "In the future, Geely will comprehensively promote the process of globalization, realize the technology to go abroad, and achieve the overseas sales of 600,000 vehicles by 2025."
The growth of new energy vehicle industry and the development of electrification and intellectualization have brought opportunities for Chinese auto brands to follow, run and even lead in the future.
Saic related person in charge said, around the national strategic goal of "carbon peak, carbon neutral", the group is continuing to promote the innovation and transformation strategy, sprint the new track of "electric intelligent connected" : accelerate the promotion of new energy, intelligent connected vehicle commercialization process, carry out research and industrialization exploration of autonomous driving and other technologies; We will improve the construction of "five centers" including software, cloud computing, artificial intelligence, big data and network security, consolidate the base of software technology, and strive to improve the digital level of automotive products, travel services and operation systems. (Dongfang Shen, reporter of our Newspaper)

Post time: Mar-18-2022


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