Why China's new energy vehicles sell well overseas (international theory)

2022-07-25

Focusing on the concept of green and low-carbon development, Yibin City, Sichuan province takes new energy vehicles as the focus of industrial development. At present, "made in Yibin" Kaiyi cars have been exported to 10 countries and regions in Asia, central and South America and Africa. The picture shows workers busy on the production line in the Kaiyi automobile smart assembly workshop in Sanjiang new district, Yibin City recently. Photo by Zhuang Ge'er (people's picture) data released by the China Association of automobile manufacturers recently showed that in the first half of this year, China exported 202000 new energy vehicles, a year-on-year increase of 1.3 times, accounting for 16.6% of total automobile exports. The international competitiveness of China's new energy vehicles continues to improve, and relevant enterprises are also actively seizing opportunities to vigorously explore overseas markets, which has attracted high attention from foreign media. Favored by consumers in many countries, a recent Forbes magazine article said that the popular electric vehicle market in Europe is still in a relatively "vacuum", and Chinese automobile manufacturers are launching an impact on this market. Statistics show that nearly 10 Chinese car companies have exported new energy models to Europe, and Chinese electric vehicles have accounted for 10% of the total sales of electric vehicles in Europe. In 2021, China exported about 550000 electric vehicles worldwide, 40% of which were sold to the European market. The website of the Financial Times quoted the report of the China Institute in Mercator, Germany, saying that in 2021, the market share of Chinese electric vehicles in Europe was second only to Germany. The article of the US "electric vehicle Insider Network" pointed out that in Europe, Chinese electric vehicles are one of the most popular electric vehicles, which is "not surprising". In many countries in Asia, China's new energy vehicles are also favored. The Japanese version of South Korea's "Korean national news" recently disclosed data released by an automotive market research organization that in the first half of this year, 399 of the 896 newly licensed electric buses in South Korea were made in China, accounting for about 44.5%. This figure was 23.2% in 2020 and 33.2% in 2021. "Made in China is very popular.". Recently, a report published on the website of Lianhe Zaobao in Singapore told the story of a middle-class family in Singapore who bought Chinese electric vehicles after many selections. According to the report, the total size of the electric vehicle market in ASEAN countries will reach nearly US $500million in 2021, and is expected to exceed US $2.6 billion by 2027. Chinese car companies, on the other hand, have identified business opportunities as early as a few years ago and sowed seeds in the Singapore electric vehicle market. In Israel, the geometric C-type electric vehicle launched by Geely Automobile of China has attracted the attention of local media: "it can travel up to 460 kilometers at a time, and can span north and south of Israel." In the first half of 2022, this model accounted for 22% of the Israeli pure electric vehicle market, and was rated as the "best purchase model of the year" by the local automobile magazine. The Israeli financial media globe wrote that BYD, Weilai, great wall, GAC, SAIC... At least 10 Chinese auto brands are or will sell new energy vehicles in Israel. With the advantages of scale and cost, many foreign media have paid attention to a news: in the first half of this year, the sales volume of Chinese auto enterprise BYD new energy vehicles exceeded 640000, becoming the largest electric vehicle manufacturer in the world. According to the financial times, this shows that China's leading position in the field of new energy vehicles is rising, "China has scale and cost advantages in the supply chain of electric vehicles, power batteries, wind energy and solar energy". The market competitiveness of China's new energy vehicles is a topic of interest to foreign media. According to the website of Spanish newspaper El Pais, battery technology is very important for electric vehicles, accounting for almost one third of the cost of vehicles. Some Chinese auto companies have made a lot of investment in new technologies, and took the lead in joining the research on battery chemicals that rely less on expensive nickel and cobalt, making Chinese electric vehicle brands have a certain resistance to cost risks. South Korea's "Korean national news" published an article saying that the "made in China" electric bus, which has a long mileage and runs all day without charging, has gradually occupied the South Korean market due to its price and technical competitiveness. The article points out that the charging cost in South Korea during the day is much higher than that at night, and the short battery range will increase the cost. In Seoul, for example, the late night charge is 50 to 100 won per kWh, but the daytime charge is more than 200 won. Electric buses made in China only need to be recharged late at night to meet the needs of the day. Nihon Keizai Shimbun website reported that the competitiveness of China's electric vehicles stems from industrial agglomeration. The report introduced the concept of "scale competitiveness" proposed by Ningde times, an automotive battery manufacturer, saying that the enterprise has formulated a large-scale investment plan to improve production capacity and has established a major material procurement network in China. Japanese component manufacturers estimate that thanks to industrial agglomeration, China's electric vehicle production costs are low and its competitive advantage is increasingly obvious. The German Business Daily reported that so far, the electric vehicles sold in Europe are mainly expensive models. However, the mass market is the "key to the success" of electric vehicles. Some investors believe that with its attraction to the mass market, Chinese electric vehicles will quickly flow into Europe and occupy a larger market. At present, under the influence of COVID-19, geopolitical conflicts and other factors, international energy prices fluctuate at a high level, energy security issues have attracted much attention, and the development of new energy vehicles has ushered in new opportunities. Some foreign media have noticed that under the background of the "double carbon" policy, the Chinese government has vigorously supported the development of new energy vehicle enterprises and injected impetus into the "going to sea" of enterprises. Swiss "Observer" website pointed out that the automotive world is experiencing an electrical revolution. As the largest auto market in the world, China promises that by 2025, the sales volume of new energy vehicles will reach about 20% of the total sales volume of new vehicles. In the field of electric vehicles, China leads the world trend. Spanish newspaper El Pais pointed out that in order to reduce the dependence of transportation and industry on imported fossil fuels, the Chinese government and new energy vehicle enterprises stood together and introduced some subsidy measures to promote the development of the emerging electric vehicle industry. Bloomberg noted that China has also taken some specific measures to promote the development of new energy vehicles, such as limiting the licensing of vehicles with high fuel consumption and urging lithium (a battery component) manufacturers to rationalize prices. In recent years, China's new energy vehicle enterprises have seized opportunities to layout overseas markets. Singapore's Lianhe Zaobao reported that as early as 2014, BYD signed a joint laboratory agreement with the Singapore Science and Technology Research Bureau to jointly develop electric vehicle systems for Singapore's public transport; In 2017, the first all electric taxi fleet using BYD models has started in Singapore. According to the report, since the beginning of this year, Chinese enterprises have accelerated their layout in the Singapore electric market, and Weilai automobile has announced that it will set up an artificial intelligence and autonomous driving research and development center in Singapore. In April this year, an enterprise engaged in the intensive operation of new energy logistics vehicles in Shenzhen and an enterprise under the Singapore mass rapid transit company announced that it would establish a joint venture electric vehicle service company. The website of Nihon Keizai Shimbun recently reported that in Europe, Chinese new energy vehicle enterprises have entered markets such as Norway, Germany, France and the Netherlands, and are steadily expanding their sales channels in Europe. According to the data of a British research company, the output of pure electric vehicles in China reached 2.94 million in 2021, accounting for 60% of the world. After producing nearly 70% of the world's smart phones, China has also won the status of "world factory" in the field of electric vehicles. (outlook new era)

Edit:Ying Ying    Responsible editor:Wang Chen

Source:People.cn

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