Huge export potential of China’s new energy vehicles in 2022

According to statistics from the China Association of Automobile Manufacturers, the export of new energy vehicles reached 310,000 in 2021, with a year-on-year increase of 304.6%. Among them, 300,000 new energy passenger vehicles were exported, with a year-on-year increase of 329.5%; 10,000 new energy commercial vehicles were exported, with a year-on-year increase of 59.6%.

The export of new energy vehicles showed explosive growth, and its highlights are mainly as follows:

First, foreign brands and Chinese brands work together to promote rapid export growth.

According to the statistics of China Automobile Association, the top 10 enterprises in the export volume of new energy vehicles in 2021 are Tesla, SAIC Group, Dongfeng Motor, BMW Brilliance (Auto), Daqing Volvo, BYD, JAC Group, Geely Holding, Baoneng Automobile and Yutong Bus. Led by Tesla, the export of foreign brand new energy vehicles accounted for two-thirds of the export share. The export of independent brand new energy vehicles has also developed rapidly. In particular, SAIC Group has exported 54,000 new energy passenger vehicles and commercial vehicles，has become the leader in the export of Chinese brand new energy vehicles. BYD, JAC group, Geely holdings and others achieved rapid growth in new energy vehicles export in 2021.

Second, independent new energy vehicles have entered the markets of developed countries.

In 2021, the European and South Asian are the main incremental markets for China's new energy vehicle. In Europe, China‘s NEVs were mainly exported to developed countries such as Britain, Norway, Germany, France, Belgium, Italy, Spain and Portugal, which reflects the competitive advantage of China's independent new energy vehicle products.

Third, the export of high-end and low-end products should work together to build the industrial advantages of China's new energy vehicles.

In recent years, the export data of new energy vehicles by China Customs has been higher than that of more than 100,000 vehicles according to the statistics of China Automobile Association. The gap mainly comes from the export of low-speed electric vehicles. This situation will continue in 2021, which also shows that Chinese electric vehicle enterprises can not only export high-end electric vehicles to the markets of developed countries, but also low-speed electric vehicles are competitive and have a broad overseas market.

Fourth, China's export of new energy vehicles has the characteristics of "high quality and high price".

The selling price of Chinese brand new energy vehicles has reached US $30,000 / set. According to the customs data, in the first three quarters of 2021, the export amount of pure electric passenger vehicles reached US $5.498 billion, a year-on-year increase of 515.4%. The growth of export amount is larger than the growth of export quantity, which intuitively reflects the sharp increase in the export price of China's new energy vehicle products.

Analyze the main reasons for the sharp increase in the export of new energy vehicles:

First, the rapid expansion of the global electric vehicle market has provided opportunities for China's export of new energy vehicles.

In order to achieve the goal of carbon reduction, European governments have increased subsidies for new energy vehicles, Chinese products have also been recognized by European consumers, and China's overseas new energy vehicles market has developed rapidly.

Second, China's new energy vehicle products have good competitiveness.

China's new energy vehicle technology has basically reached the international advanced level. It has made comprehensive progress in terms of product appearance, interior decoration, mileage, environmental adaptability, vehicle performance, quality, energy consumption and intelligent application. It hasadvantage in the competition and has won the favor of customers from abroad.

Third, the supply chain scale, industrialization and technological progress support the development of complete vehicles.

China's new energy vehicle power battery technology has reached the international leading level, and the energy density of battery cells has continued to be improved, basically solving the problem of battery safety; the technology of driving motor is basically synchronized with the foreign level, and most of them are close to the international advanced level; in terms of motor control, we have basically mastered the key technologies of some core parts and realized localization; the improvement of the supply chain has strongly supported the export of complete vehicles.

Fourth, there are few competitors and the brand barrier is not high.

New energy vehicles are new products. Foreign traditional automobile enterprises are relatively slow in the development of new energy vehicles and cannot provide competitive products, while Chinese products can meet the needs of consumers, and have advantages in cost and competitiveness; foreign automobile enterprises cannot make full use of the original strong brand barriers in the brand of new energy vehicles, and consumers in developed countries are also willing to accept China's new energy products, which provides a better environment for the export of Chinese brand vehicles.

In the next step, China's export of new energy vehicles needs to make further efforts in cross-border transportation of electric vehicles, intellectual property protection of China's own brand new energy vehicles, better cultivation of overseas brands of new energy vehicles and implementation of localization strategy. We believe that the export of China's own brand new energy vehicles has great prospects, and finally the world-famous Chinese automobile brand will be born.

(Note: the article comes from AutoReview)

Translated by: WONDEE Autoparts

2022/4/21