China's auto export "two-step jump", pure electric vehicle contribution is expected to exceed 50%

"From 2020 to 2022, China's auto exports achieved a two-step jump, increasing by 1 million units each in 2021 and 2022." Sun Xiaohong, secretary-general of the Automobile branch of the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products, said recently at the China Automobile Import and Export Summit Forum that although automobile exports have developed rapidly, the export situation is not stable and the foundation is not solid enough.

In 2022, China's auto exports exceeded 3 million units, becoming the second largest auto exporter after Japan. China exported 682,000 vehicles in the first two months of this year, up 43.2 percent year on year, according to data released by the General Administration of Customs on March 7. Automobile exports reached 96.83 billion yuan, up 78.9 percent year on year.

Exit two-step hop

For years, China's auto exports hovered around 1 million units before starting to explode in 2021. Among them, new energy vehicles are the main growth force of automobile export. China exported 679,000 new energy vehicles in 2022, up 1.2 times year-on-year, accounting for 22 percent of the total export volume. On the other hand, the pickup market in the overseas market demand release, also brought a certain increment.

According to data provided by Sun Xiaohong, China's top 10 auto companies exported 2.8 million vehicles in 2022, accounting for 90 percent of the total, including SAIC Motor, Chery, Tesla, Changan, Dongfeng, Geely, Great Wall, Jiangqi, BAIC and Sinotruk. In terms of different markets, Asia, Europe and Latin America are the main markets for China's vehicle export. In terms of volume, China exported 1.013 million vehicles to Asia in 2022, accounting for 32.2%. 864,000 vehicles were exported to Europe, up 76.3% year on year, accounting for 27.5%; Exports to Latin America were 773,000 units, up 49.4 percent year on year, accounting for 24.6 percent.

"The market distribution is more balanced on the back of rapid growth in vehicle exports. The Latin American market is gradually returning to normal, the share of exports to Europe will continue to increase, and Oceania will become a new growth point." Sun Xiaohong said.

By country, Mexico, Saudi Arabia and Chile ranked top three in terms of export volume. Spain, the United Arab Emirates and Israel are the top three in terms of growth rates.

It is worth noting that although the export volume to Asia was the highest, in terms of export value, the export volume of Chinese whole vehicles to Europe was the highest, reaching 22.57 billion dollars, accounting for 37.6%. It was followed by Asia with 18.14 billion dollars in exports, accounting for 30.2%. Exports to Latin America amounted to $9.34 billion, accounting for 15.6 percent of the total. By country, Belgium, the United Kingdom and Russia are the top three countries in terms of export value. Spain, Israel and the United Arab Emirates were the top three countries in terms of export value growth.

In the era of fuel cars, the unit price of Chinese exports is low, and the brand competitiveness is poor. And in the era of new energy vehicles, our country has become the world's largest new energy vehicle market. Some enterprises' electric vehicles are high-end models, and have been favored by the market. Chinese carmakers generally charge higher prices in Europe than in their home markets. Thanks to the advantages of a mature industrial chain, China's new energy vehicles have strong competitiveness, and their brand premium ability has been greatly improved compared with that of fuel vehicles.

A senior executive of an autonomous car company said in an interview with a reporter from China Business News that the cost of automobile export in addition to the vehicle itself, also includes tariffs and freight. Due to the COVID-19 pandemic in 2022, freight costs have been increasing, accounting for 10% of the total export cost per vehicle.

Sales of pickups, on the other hand, are growing rapidly in foreign markets. In 2022, export sales of pickup trucks reached 200,000 units, a year-on-year increase of 77 percent. Among them, Datong, Great Wall, Jianghuai and Changan for the first camp of exports, exports accounted for more than 70%. In the overseas pickup market, American and Japanese auto companies occupy a higher market share. In recent years, as Chinese pickups strengthen their overseas business, more and more high-end products go global and compete directly with Japanese and American pickups. Among the top 10 pickup truck sales in the world, the Great Wall Gun has been ranked among them, ranking ninth.

Jiang Huai Automobile International company general manager assistant Zeng Lang believes that the overseas market pickup function and multiplier attributes are stronger, users are willing to buy more high-end, more intelligent, more comfortable pickup products. Business and passenger dual use for the best embodiment of the multifunctional attributes of the pickup truck, taking into account cargo transportation and daily travel, is the largest overseas pickup market segment. Passenger pickup trucks are mainly used for personal purposes such as commuting, self-driving travel, outdoor cross-country, etc., accounting for more than commercial and commercial passenger pickup trucks in the high-end market. The emission standards for pickup trucks in overseas markets are generally lower than those in China, but the safety standards are higher.

"International brand pickup truck modeling is moderate, simple configuration, high price, Chinese brand pickup truck ride, intelligent, new energy leading the trend, to provide overseas users with a better choice. The exchange rates of many countries are now below their issue prices, falling by 70 to 80 percent. Therefore, the real purchasing power of the main target market has decreased significantly. Some users with high loyalty to international brands will consider Chinese brands with higher cost performance in this case. Of course, Chinese brand pickup trucks are not cheap overseas, and Chinese brands are moving toward a higher pricing strategy." Zeng Lang said.