Localised innovation to help drive new energy vehicles to sea

In the field of new energy vehicles, China has not only become the world’s largest producer and consumer for eight consecutive years, but also become the world’s largest exporter in recent years. New energy vehicles accelerate “going to sea” and are becoming a new business card of “Made in China”.

Clothing, furniture, home appliances were once known as the “old three” of China’s foreign trade exports. Data from the General Administration of Customs show that in the first quarter of 2023, the export performance of new advantageous products in the manufacturing industry was bright, and the total export of electric manned vehicles, lithium batteries, and solar cells “new three” products increased by 66.9%, an increase of more than 100 billion yuan year-on-year, which increased the overall export growth rate by 2 percentage points. Data from the China Association of Automobile Manufacturers show that 348,000 new energy vehicles were exported in the first four months of 2023, an increase of 1.7 times year-on-year, more than half of the annual export of 679,000 in 2022; Among them, exports in April increased 8.4 times year-on-year. At present, China’s new energy vehicles are sold across six continents.

In 2022, China overtakes Germany to become the world’s second largest automobile exporter. China surpassed Japan in auto exports in the first quarter of 2023 and is on track to become the world’s largest auto exporter this year. And new energy vehicles undoubtedly play a crucial role in them, providing a rare opportunity for our country to change lanes and catch up. Relying on the support of the domestic super-large-scale market and complete industrial system, thanks to the national strategic layout and the collective efforts of enterprises, China’s automobile enterprises are currently in the leading camp in the new energy track, and intelligent research and development and application are also in the forefront of the world. As a representative of high-tech, high value-added products leading the green transformation, the rapid growth of new energy vehicle exports reflects the solid footprint of China’s manufacturing industry towards high-end, intelligent and green under the supply-side structural reform.

But building a car is a marathon. The road to the “sea” of new energy vehicles is not a smooth road, but full of wind and waves. In the development of China’s new energy automobile industry, we have no small advantages in some areas, such as power batteries. However, we must also clearly see that there are obvious shortcomings in some areas, such as operating systems and car chips, which are the core of building the intelligent electric vehicle industry ecology. Only by further increasing innovation efforts, strengthening research and development investment, and making up the short board of the industrial chain and supply chain as soon as possible, can we consolidate and expand development advantages, and make China’s new energy vehicles more popular overseas.

The continuous expansion of China’s new energy vehicles overseas territory also depends on the support of policies and logistics. In recent years, around the “going to sea” pain points of new energy vehicles, many important measures have been introduced from the central to local governments to support automobile companies to actively explore overseas markets. Whether it is improving infrastructure, improving transportation capacity, or increasing fiscal, tax and financial support, good results have been achieved. With the full implementation of RCEP, the in-depth promotion of the joint construction of the “Belt and Road”, as well as the signing and entry into force of more and more bilateral and multilateral free trade agreements, and the significant improvement of trade facilitation, will strongly boost China’s new energy vehicles “sail far”.

When Chinese car companies enter overseas markets, they will face many challenges such as cultural and legal differences, exchange rate risks, and changes in international relations. This forces the relevant car companies not only to deeply study the new market, but also to accelerate the construction of overseas marketing and after-sales service networks, and effectively protect data security and personal privacy. At the same time, vehicle companies, power battery companies and accessory companies should also pay attention to the integration of resources, “go to sea” together, and build a localized overseas supply chain. It should be said that whether we can play the “localization” card well is related to the ultimate success or failure of China’s new energy vehicles in the overseas market. In this regard, “going to sea” enterprises should not only fully consider various difficulties, but also meet opportunities and challenges with confidence. Although the road is far, the line is coming; Hard as it is, it will be done.