Auto & Transportation

Recently, China's automobile import and export data has been released, and the export volume in the first quarter has exceeded that of Japan, and automobile exports continued to maintain a growth trend in April. Some foreign media predict that China will surpass Japan this year or become the world's largest automobile exporter.

Industry insiders believe that the significant increase in China's automobile exports is due to the booming development of the electric vehicle industry. In the process of energy transformation in the automotive industry, China has successfully built a world leading electric vehicle industry cluster, leading the world in intelligence and networking. In addition, the charm of the world's largest automotive market has attracted top foreign automotive companies to accelerate their adjustment of their layout in China, deeply cultivate the Chinese market, and learn from Chinese experience.

This speed is unbelievable

According to statistics from the China Association of Automobile Manufacturers, import and export data shows that in the first quarter of this year, domestic automobile companies exported 994000 vehicles, a year-on-year increase of 70.6%, surpassing Japan's 954000 vehicles. The latest data shows that import and export data shows that in April, exports of 376000 vehicles increased by 1.7 times year-on-year. Among them, exports of 100000 new energy vehicles such as electric and hybrid vehicles increased by 28.6% month on month and 8.4 times year-on-year, maintaining a good momentum.

The Financial Times recently reported that Chinese electric vehicle manufacturers dominate the domestic market and are also aggressively expanding overseas. Import and export data shows that in 2022, China's automobile exports surpassed Germany, and this year China will surpass Japan to become the world's largest automobile exporter.

Brad Setzer, a senior researcher at the Diplomatic Society, a US foreign policy think tank, commented on Twitter that this is happening incredibly fast.

According to a recent report by CBS, China's automobile exports have increased by over 50% in the past two years alone, and China, along with Japan, Germany, and the United States, has become the top exporter of automobiles worldwide.

When it comes to the leading role of Chinese electric vehicle companies in changing lanes, visiting professor Jinan Nobian from Nagoya University in Japan said that first of all, in terms of top-level design, China had set the goal of becoming an automotive powerhouse about 20 years ago, and did not choose to catch up with advanced countries such as Europe, America, and Japan in the field of internal combustion engines. Instead, it had long focused on the electric vehicle field.

Secondly, import and export data shows that China has introduced foreign car companies to its domestic production and optimized its automobile foreign investment policies, such as inviting Tesla to settle in Shanghai and learn the concepts and models of intelligent electric vehicles. In addition, local enterprises such as Ningde Times have long laid out the manufacturing of power batteries and other components, forming an electric vehicle industry cluster. The huge scale of China's market has also brought significant advantages to the development of the electric vehicle industry.

The Era of Electric Vehicles Begins

Industry experts and analysts believe that due to its early start, China not only leads in the electrification of automobiles, but also some Chinese brands are quite competitive internationally in areas such as networking and intelligent assisted driving. Chinese electric vehicle brands have driven the transformation of the entire industry and left foreign companies behind.

According to Agence France Presse, electric vehicle expert Elliot Richards said that this year's Shanghai Auto Show has proven that Chinese brands "can compete with all traditional car manufacturers in all aspects - performance, quality, comfort, nothing they cannot do". He said, "I think this auto show marks the end of the era of internal combustion engines and the beginning of the era of electric vehicles

On April 25th, people visited the official debut of the all-new NIO ES6 at the Shanghai Auto Show. Photographed by Xinhua News Agency reporter Wang Xiang

Ferdinand Dudenhofer, a renowned German automotive expert and director of the Duisburg Automotive Research Center, recently stated that China is an indispensable and important force in the process of new energy transformation in the automotive industry. From automotive batteries to automotive software, chips, and many other fields, Chinese companies are at the forefront of global technology. European automotive companies need to learn from their Chinese counterparts and work together between China and Europe to achieve win-win results.

Dudenhofer believes that Chinese brands have a dominant position in the field of electric vehicles and automotive software. Chinese car companies are gradually entering the European market and have strong influence in Eastern European countries, as well as in the UK. Now they have arrived in Germany

The February issue of the Massachusetts Institute of Technology Review in the United States pointed out that China has successfully built a world leading electric vehicle industry, and this trend has not slowed down, and "has already possessed some structural advantages". China's dominant position in the electric vehicle industry has helped it become one of the leaders in global climate change policies, helping it curb air pollution, reduce its dependence on imported oil, and rebuild its economy after the financial crisis.

The article quotes senior researcher Ma Zoko from the Center for Strategic and International Studies, a US think tank, as saying that China's experience shows that electric vehicles can become an opportunity for developing countries to surpass developed countries.

Opportunities and Experience in China

The report "2023 Global Electric Vehicle Outlook" released by the International Energy Agency recently shows that China is the leader in the global electric vehicle sales field. Last year, 60% of global electric vehicle sales occurred in China, and more than half of global electric vehicle sales occurred in China. As the potential of the Chinese market continues to be unleashed and new consumer demand continues to emerge, no international car company wants to miss the opportunity to develop in China.

Christoph Mintzer, chairman of the economic union of German Baden Industrial Enterprises, told reporters that the huge and prosperous Chinese market is full of vitality, attracting German car giants such as Mercedes Benz, Volkswagen and BMW to take root in China, develop harmoniously with the Chinese market, enhance understanding and trust with Chinese partners, and work together to achieve prosperity. China has a thriving market and gathers cutting-edge technology from the global automotive industry, coupled with enthusiastic consumers willing to accept new things. German car companies look forward to continuing their development momentum in China.

Fabian Brandt, partner of the Munich office and head of the global automotive and manufacturing department at Aowei Consulting, stated that compared to European consumers, Chinese consumers pay more attention to the "mobility" represented by renewable energy vehicles, and the changing aesthetic demands for vehicle appearance and interior also reflect this characteristic. He believes that local Chinese car brands are actively catering to market demand by launching new model designs, while some foreign brands have made cuts in areas that Chinese consumers are concerned about. This is also the reason why their sales in the Chinese market are not ideal.

The President of Honda Motor Company in Japan, Minhong Mitsubu, recently told Japanese media that Chinese car manufacturers have made leapfrog progress in the field of software defined vehicles, "exceeding our imagination. He bluntly said, "We are already behind

In a collective interview with foreign journalists in Tokyo, the newly appointed president of Toyota Motor Company, Hideyoshi Sato, said that the Chinese automotive market is at the forefront of the world in terms of electrification and intelligence, and Toyota can learn a lot from the Chinese market. For Toyota, its role in China is crucial in leading the company's transformation.

Industry insiders believe that China's new energy vehicle industry has entered a period of comprehensive market-oriented expansion. But it should also be noted that domestic new energy vehicle brands are facing more severe market competition. The profitability, independent innovation ability, and comprehensive competitiveness of the domestic new energy vehicle industry chain still need to be further improved.