Automobile self-owned brands accelerate "going overseas"

  The latest data from the China Association of Automobile Manufacturers shows that in the first 10 months of this year, my country's auto companies exported 2.456 million vehicles, a year-on-year increase of 54.1%.

  "This number has surpassed Germany, second only to Japan, and ranks second in the world." Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers, predicts that the total number of my country's auto exports this year is expected to exceed 3 million.

Self-owned brands speed up going out

  Not long ago, NIO held the NIO Berlin 2022 European Conference at the Temperer Hall in Berlin, Germany, and announced that it will start providing full-system services in the markets of Germany, the Netherlands, Denmark, and Sweden.

This is NIO's further business development in the European market after entering the Norwegian market last year, and it is also the first time for a Chinese auto brand to hold a product and strategy launch in the German capital.

  For this "going overseas", NIO has a total of 3 brand new models ET7, EL7 (named ES7 in the domestic market) and ET5, and opened pre-orders in 4 European markets with an innovative "subscription model".

"After carrying out multiple face-to-face and test drive activities with users in four European countries, many users have reported that they hope to increase the option of buying out." Weilai co-founder and president Qin Lihong told reporters that considering the needs of customers, Weilai decided to A new buyout mode will be added from November 21, and delivery will start early next year.

  Similar to entering the Norwegian market, NIO will also establish a complete operating system consisting of products and services in the four European markets, and create a user community starting from cars.

From September 21 to 30 this year, Qin Lihong and NIO founder, chairman and CEO Li Bin visited 10 European cities successively, visited user advisory groups, partners, and colleagues, and learned about the construction of NIO centers and power stations in various places. Progress, experience charging service.

  While Li Bin and Qin Lihong were inspecting the European market, another Chinese car company, BYD, signed a cooperation agreement with a German car rental company called SIXT.

According to the agreement, the latter will purchase at least 100,000 new energy vehicles from BYD in the next six years.

  At present, my country's auto companies are accelerating their "going overseas".

The export territory has gradually expanded from the traditional African and Middle East markets to the North American and European markets; the products have been upgraded from the low-end models in the past to high-end cars, which can satisfy the global market in terms of appearance quality, internal technical quality and brand marketing capabilities. Diversified market demands.

In particular, new energy vehicles performed even better and became an important force driving high-quality export growth.

  The latest data show that in October this year, the export volume of my country's auto companies hit a record high, reaching 337,000 vehicles, a year-on-year increase of 46%.

Among them, 109,000 new energy vehicles were exported, a year-on-year increase of 81.2%.

Product competitiveness has been greatly improved

  Going back to 20 years ago, according to the data of the International Association of Motor Vehicle Manufacturers, in 2002, the world's automobile export volume was 22.1 million vehicles, and the export volume of Germany and Japan exceeded one million vehicles.

However, the export volume of Chinese automobiles is only 43,100 units. After deducting special vehicles such as snowmobiles, the export volume of Chinese automobiles is only 22,000 units.

  As my country's automobile brands accelerate their "going overseas", the export volume of products has grown rapidly in the past two years.

In 2021, the export of automobiles will exceed 2 million, doubling, and in the first 10 months of this year, it will achieve a growth of more than 50%.

Xu Haidong’s analysis believes that in the short term: first, the overseas market is recovering; second, my country’s supply chain is relatively complete, and there are problems in the overseas auto supply chain, and the supply of cars is not available; third, the rapid growth of new energy vehicles.

  In the long run, first of all, the competitiveness of my country's auto products has been greatly improved.

"We have not only improved our design capabilities, but also paid great attention to customer experience. We have done a very good job in product appearance design, quality control and management, our technological innovation and integration capabilities have been greatly improved, and our service system is also innovating." Xu Haidong said.

  Second, overseas export models are increasingly diverse.

At present, my country's auto companies have expanded from the past complete vehicle trade to building local factories, cross-border brand cooperation, self-built sales channels, and customized development of shared technologies.

Many Chinese companies have established overseas R&D, marketing, logistics, parts, manufacturing, finance, and used car supply chain systems for the global market in the automotive industry chain, laying a solid foundation for the overseas development of Chinese auto companies.

  Thirdly, Chinese auto companies are paying more and more attention to brand building.

Product price is a direct reflection of brand premium power.

From the perspective of the average export price of my country's automobiles, the average price in 2018 was 12,900 US dollars, and then gradually increased to 16,400 US dollars this year, reaching 18,900 US dollars in August.

Among them, the average price of pure electric vehicles has increased more significantly, reaching US$25,800 in August.

  On November 9, the famous German auto magazine "AUTO BILD" released the 2022 "Golden Steering Wheel" award. NIO ET7 won the title of the best medium and large car of the year, becoming the first Chinese brand model to win the "Golden Steering Wheel" award.

This time, NIO's models won this honor, reflecting from one aspect the high recognition of Chinese auto brands by the European market and users.

  The external environment also provides opportunities for Chinese brands to make efforts in the European market.

In order to achieve carbon reduction goals, many European governments have successively announced carbon emission targets in recent years and increased subsidies for new energy vehicles.

For example, Norway has launched a number of policies to support the transformation of electrification, including exempting electric vehicles from 25% value-added tax, import duties, and road maintenance taxes; Germany has extended new energy subsidies to 2025, further activating new energy vehicles. Energy vehicle market.

The challenges are not small but the opportunities are greater

  Since the beginning of 2020, facing the impact of the new crown pneumonia epidemic, my country's auto exports have achieved growth against the trend.

After years of market training, my country's self-owned brand vehicles, especially new energy vehicles, have made great progress in terms of quality, technology, supply chain system construction, and brand building, which has greatly enhanced their competitiveness in overseas markets.

However, this does not mean that the "going overseas" of Chinese auto brands will go smoothly and will not encounter storms.

  Tesla is an existence that cannot be avoided.

It should be noted that in recent years, a considerable proportion of my country's new energy vehicle exports are products produced in my country by overseas sole proprietorships and joint ventures and sold back to overseas markets.

According to statistics from the National Passenger Car Market Information Association, in the first 10 months of this year, Tesla's export share in China was close to half.

  "If you want to gain a foothold in the European high-end market, you need to provide leading products, services that exceed European users' expectations, and innovative business models, and solve users' pain points." Qin Lihong said frankly that NIO's entry into Europe is an away competition for a newborn brand facing a century-old brand. , the challenge is great.

  Different from general commodities, automobile products have high value, complex use scenarios and long life cycle. While emphasizing performance, price and quality, they must also have comprehensive channels and after-sales service system guarantees.

Especially for new energy vehicles, the construction of energy supplement system is particularly important.

Reflecting on the various difficulties encountered in the export of traditional fuel vehicles in the past, in addition to insufficient product competitiveness, another important reason is that the supporting services cannot keep up, resulting in poor overseas brand image and reputation.

  Xu Haidong suggested that self-owned brand vehicles must formulate a long-term strategy for overseas development.

Before entering overseas markets, it is necessary to conduct in-depth research, segment the consumer market, be familiar with local laws and regulations, cultural background, climate environment, consumption habits, and transportation infrastructure, etc., and extend after-sales service, including providing personalized services.

In this regard, we can learn from the experience of Japanese and Korean car companies.

  While gradually establishing market advantages in industrial support, manufacturing, quality control, after-sales service, and brand building, Chinese auto brands must also be good at telling Chinese stories.

"Cars are consumer goods. Cars are exported overseas. When a foreigner drives a Chinese car, he is experiencing Chinese products, and there are Chinese stories behind it." Work hard.

  "Currently, there are good opportunities for self-owned brands to export, and the demand for new energy vehicles is huge, which is a good opportunity for my country's auto exports." Cui Dongshu, secretary-general of the National Passenger Car Market Information Association, said that for a long time, a strong auto industry has been regarded as a Symbol of industrial power.

At present, China is already the second largest automobile exporter in the world. Although there are many challenges on the road ahead, the future potential is still huge.

(Economic Daily Yang Zhongyang)