Comment: How strong is Chinas electric vehicle export strength?

Source: Wall Street Journal

Author: jacky wong

Your next electric vehicle is likely to be made in China. If you live outside the United States, this chance is even greater. After all, the United States is busy making electric vehicles made by foreign countries, especially Chinese -made in China.Battery setting barriers.

In the first quarter, China surpassed Japan to become the world's largest car exporter.The surge in exports to Russia has brought huge booster to Chinese cars exports.In addition, the strength of China's electric vehicle ecosystem is also an important factor in promoting this trend.

Official data show that in the first quarter of this year, China ’s automobile exports were 1.07 million units, an increase of 58%year -on -year.In contrast, according to data from the Japan Automobile Industry Association, Japan exported 950,000 cars overseas in the first quarter.

Russia's contribution to the surge in China's exports cannot be ignored.The sanctions on Russia cut off the supply of many Western products, leaving a large hole that needs to be filled, especially sanctions on fuel cars.According to Chinese official statistics, in the first four months of 2023, China's exports of cars and car parts in Russia increased more than doubled to $ 6.1 billion.According to the China Automobile Industry Association, Russia is the largest car export destination in China last quarter.

However, Russia is only part of the driving factor of a large increase in Chinese automobile exports.If Russia plays what role, related sanctions only accelerate this inevitable result.This is because China is also growing into the dominance of electric vehicles.

China is the world's largest exporter of electric vehicle, and its leading advantage seems to be expanding: According to data from the International Energy Agency, about 35%of the global exported electric vehicles last year came from China. This ratio in 2021 was 25%.According to the China Automobile Industry Association, the export of Chinese new energy passenger cars in the first four months of this year includes 335,000 vehicles, including plug -in hybrid vehicles, which are more than twice the same period of 2022.The number of new energy passenger cars accounted for about 30%of the total exports of Chinese passenger cars from January to April 2023.

As more and more consumers turn to buy electric vehicles, this number may further rise.

The Tesla Shanghai factory exports to electric vehicles in other countries including Europe, which is a vital component: According to data from the China Passenger Vehicle Market Information Federation (referred to as the Passenger Federation), this year-The in April, Tesla exported nearly 130,000 cars from China.Other foreign car manufacturers, including BMW Motor Corporation and Renault, also regard China as a manufacturing base for electric vehicles sold to other countries.

However, China's local companies are continuously growing, and in most cases their performance is better than foreign competitors.State -owned enterprise Shanghai Automobile Group Co., Ltd. (referred to as SAIC Group) and BYD are one of China's largest electric vehicle exporters.MG Motor, a British car manufacturer acquired by SAIC Group in 2007, is showing his skills in Europe.BYD has replaced Volkswagen as the best car manufacturer in China this year.

Although Chinese automakers have never caught up with foreign peers in the era of internal combustion engines, when it comes to new technologies such as electric vehicles, it is another thing.With the help of government subsidies for many years, China has developed a huge domestic market and a number of suppliers. Therefore, automakers have been able to innovate and quickly produce better and cheaper products.For example, BYD launched a hatchback called a seagull last month with a starting price of only $ 11,000.

The above situation is obvious to the similarities between the smartphone ecosystem started by Apple, although the two have important differences.Tesla has also played a vital role in China's new dominant position. However, its local brands and battery giants Ningde Times and other upstream suppliers have also grown into a dominant supplier.Thanks to generous subsidies and barriers to foreign battery manufacturers.

Made in China was not very common abroad, especially in developed economies.But in the era of electric vehicles, this situation is about to change.