At Haitong Port in Pudong New Area, Shanghai, roller coasters loaded with cars from different Chinese brands are ready to sail across the ocean to overseas markets.
Guo Yangchen/Photography
Wen/Guo Yangchen Shi Yingjing
Nowadays, whether in Moscow or St. Petersburg, Chinese car brands such as Chery, Geely, and Great Wall Motors can be seen everywhere on the streets. In the past, the most common cars in Russia were German and French cars. Anna is a middle-level manager of a Russian car dealership, and in the past two years, traveling back and forth between Moscow and Beijing has been her most familiar business route. She sighed in an interview with a reporter from China Business Daily.
Anna's feelings are not empty words, Russia is currently the largest market for China's automobile exports. According to data from the China Association of Automobile Manufacturers, from January to November 2024, China's automobile exports reached 5.84 million units, a year-on-year increase of 23%. Among them, China exported 1.06 million cars to Russia, a year-on-year increase of 26%, exceeding one sixth of the total export volume.
Cui Dongshu, Secretary General of the China Association of Automobile Manufacturers, stated that the driving force behind the growth of China's automobile exports can be summarized as the help of heaven, high quality, human efforts, and geographical changes. The first is the strong resilience of China's automotive industry chain; Secondly, the export contribution of new energy has increased; Thirdly, independent brand enterprises work very hard; The fourth is the differentiated development of China's exports.
The reporter noticed that in addition to simply exporting complete vehicles overseas, Chinese car companies have begun to increase their efforts in "ecological overseas", coordinating technology, talent, and capital across the entire industry chain, accelerating local factory construction and sales, and integrating into each other's economic system. For example, in March 2024, Nezha Automobile officially began large-scale production at its KD factory in Thailand, with an annual output of over 30000 vehicles; In November, the first product of Chery Automobile's joint venture factory with Spanish EV MOTORS was officially launched.
In the view of Yin Tongyue, Chairman of Chery Holding Group, Chinese car companies are moving towards globalization, becoming value communities with global partners, and sharing development dividends with all over the world in the process of global operations.
Russia is filled with Chinese cars
From 2021 to 2022, Chinese car companies have gradually emerged in the Russian market. By 2023, Chinese car companies have seized the relatively strong demand but insufficient supply in the domestic market of Russia, and their market share has exceeded 50%. In 2024, this data is expected to exceed 60%, "said Cui Dongshu.
Therefore, starting from 2023, Russia will become the largest market for China's automobile exports. According to relevant data, China will export approximately 160000 cars to Russia in 2022; In 2023, China will export approximately 910000 cars to Russia, a year-on-year increase of 459%; From January to November 2024, China exported 1.06 million cars to Russia, a year-on-year increase of 26%.
Chery is the most prominent Chinese car brand in the Russian market. According to the Russian automotive market analysis agency Autostat, Chery sold approximately 133500 vehicles in Russia from January to October 2024, a year-on-year increase of 41.6%, ranking third in the sales ranking of the Russian automotive market.
Anna said that although the Russian domestic car brand Lada has a lower price, Chery's advantage in technological innovation is very obvious. On the one hand, the weather in Russia is very cold, and most of them still rely on fuel vehicles. Chery has strong technical reserves in internal combustion engines, and its power output is very rapid; On the other hand, Chery is very eye-catching in terms of intelligent configuration, and its smooth car infotainment system and comfortable intelligent cockpit are welcomed by local consumers.
Localization is another major advantage of Chery. It is understood that before the product goes global, Chery insists on developing overseas local regulations, adaptability, and product competitiveness in advance, hoping to provide "customized" products and services for local consumers.
Anna stated that in the face of the cold climate in Russia, Chery has made improvements to the vehicle chassis tuning, engine preheating system, and other aspects to enhance the reliability and performance of the vehicle in harsh environments; Considering that the industrial salt used for snow melting can corrode the chassis, Chery has specially added anti-corrosion design; In product design, Chery has a deep understanding of Russian culture and fully considers the usage habits of local consumers.
Regarding how to serve the overseas market, Yin Tongyue used Sun Wukong as an example: "We encourage young people in Chery's overseas regions to become the little Sun Wukong who burrows into the belly of Iron Fan Princess, not to overturn the river, but to understand what Iron Fan Princess really wants, to have a common language and lifestyle with the locals, and to use their own 72 transformations to serve local users well
The success of the Russian market is a microcosm of Chery's acceleration in going global. The reporter learned from Chery Holdings Group that in 2024, Chery exported 1144588 cars, a year-on-year increase of 21.4%. For the first time this year, the export exceeded 1 million vehicles, and for 22 consecutive years, it has ranked first in the export of Chinese brand passenger cars.
Cross ocean expansion of the entire industry chain
On December 12, 2024, Haitong Taicang Automobile Terminal, jointly built by SAIC Group, Shanghai Port Group, and Jiangsu Port Group, was officially put into production and operation. According to the relevant person in charge of SAIC Group, as the largest car roll on/roll off terminal in the Yangtze River Basin with an annual throughput of 1.3 million vehicles, Haitong Taicang Automobile Terminal will make every effort to open up a new channel for Chinese car brands to "go overseas".
The reporter learned that as the first Chinese automobile enterprise to systematically, systematically, and systematically "go global", SAIC Group's export and overseas base sales in 2024 were 1.03841 billion vehicles, breaking through the 1 million vehicle mark for several consecutive years. The huge export volume has driven SAIC Group to start shipbuilding and dock construction.
The relevant person in charge of SAIC Group told reporters that SAIC Group has successfully built the entire value chain of the automotive industry overseas, including innovation and research centers, production bases, marketing centers, supply chain centers, and financial companies, laying a solid foundation for high-quality and sustainable development of international business. SAIC MG, the main force of independent brand "going global", has successfully entered the mainstream brand camp in dozens of countries including the UK, France, Germany, Italy, Spain, Sweden, Australia, New Zealand, Saudi Arabia, Qatar, UAE, Thailand, Mexico, Chile, etc.
Going back to 2019, SAIC Group launched its "European Strategy" and gradually accelerated its industrial chain layout in Europe thereafter. In July 2023, SAIC Group announced that it will build a factory in Europe, and site selection activities are being intensively promoted.
The Vice President of SAIC Europe believes that building a factory can bring a highly competitive supply chain to Europe, greatly enhancing SAIC Group's product competitiveness in Europe. On the one hand, we are examining the investment oriented construction methods of Greenland; on the other hand, we are also exploring the possibility of utilizing existing production capacity to achieve faster construction
In 2024, Nezha Automobile's fate is full of ups and downs. The significant decline in domestic sales has put it on the edge of a cliff, and "going global" has become the "life-saving straw" for this new car making force.
In 2024, Nezha Automobile will accelerate its global strategic layout and plan seven overseas products, including sedans, SUVs, and wagon models, covering more than 30 countries and regions. The relevant person in charge of Nezha Automobile stated that in the next three years or so, Nezha Automobile plans to cover more than 50 countries and regions, with more than 500 overseas stores, reaching 600, and annual overseas sales exceeding 300000 vehicles.
Sharing the Development Dividend with the World
On December 29, 2024, witnessed by Egyptian Prime Minister Mustafa Madbury, a strategic cooperation technology agreement was signed with the Mansour Group of Egypt at the headquarters of the new administrative capital cabinet, officially launching the MG brand's local production and assembly project in Egypt.
Mansour Group is one of the largest automobile sales companies in Egypt. According to the agreement, Mansour Mobility and Manufacturing Company (MMM), a subsidiary of Mansour Group, has successfully signed a land lease contract with the General Administration of Land and Dry Port Logistics in Egypt to plan and construct a modern automobile manufacturing factory in a new industrial zone.
It is reported that the factory's initial plan is to have an annual production capacity of 50000 vehicles, and the second phase production capacity is expected to double to 100000 vehicles, with the aim of achieving a real estate conversion rate of over 45%. The factory layout is reasonable, covering an 8000 square meter body workshop, a 12000 square meter advanced painting workshop, a 10000 square meter final assembly workshop, as well as supporting facilities buildings, administrative office buildings, and a 5000 square meter closed warehouse, ensuring efficient operation of the entire automotive production process.
This is an important measure taken by SAIC Group to uphold the concept of open cooperation and mutual benefit, and actively expand its global market layout. Zhao Aimin, Secretary of the Party Committee and Deputy General Manager of SAIC International, said that the new cooperation model with Mansur Group will produce the new generation MG5 model at the new Greenland factory. In the future, SAIC Group will gradually introduce more SUV and new energy vehicle models, including pure electric models, hybrid models, and plug-in hybrid models, to meet the diverse green mobility needs of Egyptian consumers.
On November 23, 2024, the first product of Chery Automobile's joint venture with Spain's EVMOTORS factory, the EBRO S700, was launched, and Yin Tongyue witnessed this historic moment on site.
The relevant person in charge of Chery Holdings Group told reporters that Chery insists on investing in localized manufacturing, localized research and development, building localized teams, and has nearly 10000 overseas employees, striving to contribute Chery's social value to the local economic and social development.
Today, Chery has accumulated 15 million car users, of which more than 4.2 million are overseas users, who are our food and clothing parents. "Yin Tongyue told reporters that Chery has gone out for more than 20 years and has learned many lessons, among which the deepest feeling is that once it enters a market, it must change from" you "to" us ", abide by local laws and regulations, respect local customs and habits, and take root as a local corporate citizen.
Yin Tongyue believes that a truly globalized enterprise should not only engage in global trade and layout the global market, but also have a global business philosophy, global responsibility, and value contribution, by entering overseas markets in a way that 'takes root' and becoming a 'contributor' that benefits the world. So every time you go there, you must give before taking, take root in the local area, and adhere to the principle of 'In somewhere, for somewhere'.
