China's new energy vehicles accelerate into Central Asia

6/27/2023

Thanks to the steady and rapid foreign trade growth, Xinjiang Horgos Port is a hub of commerce and trade. Since 2023, the port of export of commercial vehicles has been growing rapidly and has exported more than 35,000 vehicles.

China's new energy vehicles accelerate into Central Asia

Now is the peak period for the port to export commercial vehicles. On average, we export more than 100 commercial vehicles every day. According to Zhang Gong, head of Xinjiang Horgos Haocheng International Freight Forwarding Co., Ltd., these commercial vehicles come from many provinces in China, including engineering vehicles, passenger vehicles, new energy vehicles, etc. They are mainly sent to Central Asia and along the "Belt and Road" nation. 

China's new energy vehicles are "favored" by the Central Asian market.

The China-Europe Railway Express and other inbound and outbound cargo trains are parked in the marshaling yard of Alashankou Station.

Overseas markets are increasingly demanding Chinese new energy vehicles. According to statistics, in the first quarter of this year, China's auto exports to Central Asian countries amounted to US$500 million, a year-on-year increase of 121%. In particular, Chinese new energy vehicles are favored by Central Asian people.

On April 26, in the Xi'an International Port Area, accompanied by the siren, the China-Europe Railway Express "Belt and Road" 10th Anniversary Chang'an Xi'an-Central Asia special train departed smoothly, carrying more than 260 BYD new energy vehicles manufactured in Xi'an. Drive to Uzbekistan.

In Tashkent, the capital of Uzbekistan, the most populous country in Central Asia, Chinese new energy vehicles have become commonplace. According to information from the Ministry of Commerce of China, Uzbekistan will import 2,180 electric vehicles in 2022, of which 1,941 will come from China. In the first four months of this year alone, Uzbekistan imported 2,544 electric vehicles, of which 2,480 were from China. 

"Golden Channel" highlights the advantages of "going overseas."
 

Finished cars are waiting in line for customs clearance at the Baktu port.

Data show that China's foreign trade imports and exports in Xinjiang were 125.06 billion yuan in the first five months of this year. From the perspective of trading partners, the import and export value of China's Xinjiang to the five Central Asian countries was 100.13 billion yuan, a year-on-year increase of 99.9%, accounting for 80.1% of Xinjiang's total foreign trade import and export value during the same period. In terms of products, the export value of electric passenger vehicles increased by 410.4% year-on-year, a substantial increase year-on-year.

The export car business is booming at the Baktu Port, the earliest commercial port in Xinjiang, China. It takes an average of half an hour to complete the customs clearance procedures, step out of the country, and complete the export.
Baktu Port is only 12 kilometers away from Tacheng City, one of the land ports closest to the city in Xinjiang. More than ten kilometers away from the country gate is the town of Bakt in Kazakhstan. From January to April this year, the port exported 9,653 vehicles of various types, exceeding last year's total.

According to estimates, a batch of vehicles arrived at Tianjin Port by sea from South Korea, sent by road to Baktu Port, and then exported to Kazakhstan. The journey takes about 15 days, saving about two-thirds of the transportation time compared with sea transportation. "Golden Channel" advantage. 

Since last December, Xinjiang government delegations have visited Central Asia twice and will cooperate in various fields. Gulinar Yusup, a professor at the School of Economics and Management of Xinjiang University, believes that the high-level Xinjiang friendly exchange delegation's visit to Central Asia shows the determination to open up to the West.

New energy is an important future development direction for the automobile industry. In addition to the location advantage, the Xinjiang government has opened up to the West more than ever. Many Chinese car companies have chosen to build factories in Xinjiang, targeting the Central Asian market. 

On May 24, Shaanxi Auto Xinjiang Automobile Co., Ltd. held the first centralized offline ceremony for new energy vehicles and delivered them to customers. This move marks that Shaanxi Auto Xinjiang Automobile Co., Ltd. has officially entered the new track of electrification of heavy trucks and, at the same time, filled the gap in the production of new energy commercial vehicles in Xinjiang.

According to Shi Xinli, deputy general manager of the company, besides selling to the Xinjiang market, cars are also increasingly favored by the Central Asian market. In the next step, we will continue to explore the application scenarios of new energy heavy trucks and, at the same time, expand the Central Asian market by taking advantage of the "Belt and Road" initiative. 

Shaanxi Auto Xinjiang Automobile Co., Ltd. has received orders from the Xinjiang market and the five Central Asian countries for 3,446 vehicles and has completed production of more than 2,900 vehicles.
The automobile industry has become an important cooperation between China and Central Asia.

In 2022, the three major automakers Chery, Changan, and Great Wall will sign an agreement with Kazakhstan Astana Automobile Company to invest 1.55 billion US dollars; BYD will jointly build the second overseas factory after the Thai factory in Uzbekistan... With the joint venture With the in-depth implementation of the "Belt and Road" initiative, more and more Chinese auto companies are investing in Central Asia, and the auto industry has become an important area of ​​cooperation between China and Central Asia. 

Uzbekistan, the largest auto market in Central Asia, is transitioning towards electrification of vehicles. In March this year, BYD held a brand and product pre-sale conference in Uzbekistan and released three new models. In addition, many stores have also officially opened in March.

At present, BYD has formulated a long-term localization development plan in Uzbekistan. The two parties have established a joint venture company in Uzbekistan, focusing on producing new energy vehicles and related parts.
During the China-Central Asia Summit held not long ago, Yutong Bus signed an agreement with related companies in Kazakhstan to establish an "automotive industry technology and engineering personnel training center" to jointly develop talents in the automotive industry and strengthen cooperation and experience exchanges in the automotive industry.

From product export to technology export and then service export, the localization of the Chinese auto industry in Central Asian countries is deepening. The person in charge of Yutong bus overseas said, benefiting from the broad platform provided by the "Belt and Road" initiative, Yutong's development in Kazakhstan has gained good social benefits, and Yutong will continue to deepen the Kazakhstan market in the future, and make new contributions to the construction of the green "Belt and Road." The future Yutong will continue to cultivate the Kazakhstan market and make new contributions to the construction of the green "Belt and Road."

Tursunali Kuzyev, a professor at the Uzbekistan University of Journalism and Mass Communication, said that strengthening cooperation with Chinese new energy vehicle companies will help the popularization and promotion of new energy vehicles, promote green and low-carbon transformation, and further promote Central Asia's New energy vehicle market development.



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