It is the right time for Chinese automobiles to "go global".

In the process of developing from a large automobile country to a powerful automobile country, the export of Chinese automobiles is becoming an indispensable part. In 2023, China's automobile production and sales volume exceeded 30 million units, and exports reached 4.91 million units, ranking first globally in automobile exports for the first time. In 2024, the export of Chinese automobiles continued to maintain a strong momentum.

According to data from the China Association of Automobile Manufacturers, from January to July this year, China exported 3.262 million automobiles, a year-on-year increase of 28.8%; while Japan exported 2.396 million automobiles during the same period, a year-on-year decrease of 1.0%. After China surpassed Japan last year to become the world's largest automobile exporter, China maintained its leading position in automobile exports in the first seven months of this year, and the gap is widening. This also indicates that the export of Chinese automobiles is accelerating.

/ 01 / ? "Going global" becomes a new engine for sales of Chinese self-owned brand automobiles

At present, China's automobile industry is in a critical transition period of "growing stronger", and as Chinese automakers enter the "Age of Great Navigation", Chinese self-owned brand products have also been exported to more than 200 countries and regions worldwide in this new journey.

Among them, Chery, SAIC Motor, Geely, Changan, BYD, and others have not only contributed to the sales growth of Chinese brands but also achieved export "external competition". According to the "China Passenger Car Market Insight Report for Mid-2024" released by Yiche, in the first half of this year, among the top 10 export brands, Chery (excluding group) occupied the top position in brand exports with a total export volume of 321,700 units, a year-on-year increase of 12.92%; MG, a British brand acquired by SAIC Motor, ranked second in total exports due to its influence in Europe; BYD's internationalization strategy continued to advance, and its total exports in the first half of the year were close to last year's total exports. Overall, this year, self-owned brand automobiles continued the relatively strong growth trend of last year, and "going global" became a new engine for sales of Chinese self-owned brand automobiles.

Source: "China Passenger Car Market Insight Report for Mid-2024"

At the same time, China's automobile export market also showed different growth trends and ranking changes in different countries and regions. The above report shows that Russia remains the top destination for Chinese automobile exports, with sales to Russia increasing by about 41.9% compared to the first half of 2023. The significant growth in Brazil and the United Arab Emirates indicates that emerging markets are increasing their demand for Chinese automobiles, providing new growth points for Chinese automobile brands.

Source: "China Passenger Car Market Insight Report for Mid-2024"

/ 02 / ? The collective "going global" of the automobile industry chain

Previously, Chinese automobiles mainly went global individually through automakers, and a comprehensive industrial chain system for going global, including supply chains and financial services, had not yet formed. However, this situation is changing as Chinese automobile brands accelerate their global layout.

In recent years, driven by the export of complete vehicles, the trend of supply chains and complete vehicle enterprises "going global together" has become increasingly apparent, especially among smart electric vehicle supply chain enterprises, which have demonstrated strong international competitiveness.

Chen Zhiheng, an analyst at EqualOcean, a think tank on globalization, pointed out that China's automobile exports are gradually shifting from "product exports" to "industrial chain exports", which include not only the export of complete vehicles, technologies, brands, power batteries, charging piles, and other full-industry-chain products but also the overseas investment and construction of factories by Chinese automakers to build a more localized full life-cycle system and plan for a longer-term global layout.

Currently, several automakers, including SAIC Motor, Great Wall Motor, BYD, and Nezha, have announced plans to build factories in Southeast Asia. BYD's new factory in Thailand is scheduled to start production this year. In January this year, BYD's new energy vehicle production base was established in Hungary. In early April, BYD announced plans to build a factory in Indonesia.

Meanwhile, six major popular automobile supply chain enterprises, including intelligent driving, environmental perception, power batteries, automotive chips, electric drives and thermal management systems, and smart cockpits, have also accelerated their overseas layout. As automaker production capacity (especially for new energy vehicles) continues to expand, domestic auto parts enterprises have initiated localized development initiatives by building factories nearby in overseas markets to adapt to the needs of different OEMs in various regions. This approach enables auto parts suppliers to respond quickly to local customer needs, reduces transportation and tariff costs, and strengthens their market position overseas.

/ 03 / ? The industry "connector" serves as a "good helper" for the "going global" of Chinese automobiles

While OEMs and supply chains at the upstream of the industry chain accelerate their global layout, the automobile distribution sector at the downstream of the industry chain is also assisting the "going global" of Chinese automobiles in various ways, with Yiche being a pioneer in this regard.

As an important "connector" in the automobile industry chain, automobile internet enterprises such as Yiche have built an effective communication and service channel for Chinese automakers, dealers, and consumers by constructing a one-stop lifestyle service platform for viewing, selecting, purchasing, using, and replacing cars, thereby promoting the digitalization and intelligent development of the automobile distribution sector.

With the advent of the Age of Great Navigation for Chinese automobiles, while serving Chinese automobile users, Yiche has also extended its service reach overseas to help overseas consumers understand and easily purchase domestic automobile brands; at the same time, it promotes Chinese automobile brands through various means, helping Chinese automobiles better "go global".

Leveraging over 20 years of operational experience, product capabilities, and R&D advantages in the automotive vertical media industry, Yiche has launched an overseas website. As a professional Chinese brand automobile information platform globally, it focuses on providing local users with information on Chinese brand models, news about new cars, and product services for test drives, significantly enhancing the international influence of Chinese brands and assisting them in expanding into overseas markets. Currently, Yiche's overseas website covers seven countries, including Saudi Arabia, the United Arab Emirates, Mexico, the United Kingdom, Australia, Spain, and Singapore, and will successively open services in countries across East Asia, Southeast Asia, Central Asia, Europe, and South America.

Source: Yiche PC Website Overseas Version

Recently, leveraging internationally influential events and exhibitions such as the European Championships, the Paris Olympics, and the Chengdu Auto Show, Yiche has partnered with sports celebrities, foreign influencers, and other collaborators to launch related activities and events, helping Chinese automakers establish brand images and expand their international influence. For example, Yiche collaborated with Beijing Radio and Television Station's Sports Radio to host the "Yiche European Championships Star Race", promoting the spirit of faster, higher, and stronger for Chinese automobile brands on their journey to going global; in partnership with Beijing Sports Radio and China's first Olympic gold medalist Xu Haifeng, it launched the "Depart from China, Wait for Me in the World" automobile interactive fun challenge, collaborating with Olympic gymnastics champion Deng Linlin, Olympic trampoline champion Dong Dong, Olympic taekwondo champions Zhao Shuai and Zheng Shuyin, Olympic badminton champion Zhao Yunlei, world diving champion Hu Yadan, and world table tennis champion Niu Jianfeng, allowing Chinese brands to "go global" and "shine" on the wind of popularity; in collaboration with the million-follower "ALex in Chengdu," it planned the "Foreigner Car Viewing Group" event, praising the intelligence, technological level, and cost-effectiveness of Chinese automobiles through the voices of foreign influencers and introducing Chinese automotive achievements to overseas netizens.

Source: Internet

Source: Douyin "ALex in Chengdu"

In addition, since 2020, Yiche has successively released English-language reports on the Chinese automobile market, with over 50 issues published to date, helping overseas counterparts and consumers better understand the Chinese automobile market and self-owned brands through professional research.

Source: "Yiche Research Institute" WeChat Official Account

/ 04 / ? Conclusion

Compared to the export of complete automobile products, the export of industrial chains and ecosystems encounters significantly less resistance. The "going global" of Chinese automobiles should not rely solely on automakers' efforts but also require the concerted development of China's upstream and downstream automobile industry chains to form a strong comprehensive competitive strength.