Exports of new energy and used automobiles are on the rise

How popular is the export of new-energy vehicles?

About 80% of used cars exported from China are new energy vehicles.

Occupy the vast majority of China's used car exports

Regarding the statement that "new energy accounts for 80% of China's used car exports", many people in the used car export industry told reporters that although there is no accurate data yet, new energy does occupy the vast majority of China's used car exports.

According to data from the China Automobile Dealers Association, in the first half of 2022, new energy accounted for more than 90% of used cars exported from Taizhou and Tianjin.

Compared with Japanese, Korean, and German brands, the advantages of Chinese fuel vehicles in the international market are not obvious. Still, the rapid development of China's new energy vehicles in the past few years is obvious to all. The industrial scale and the technical level are ranked first in the world.

High-end cars are popular, and urban elites buy more.

China's new energy technology and industrial chain advantages have driven the growth of exports of new energy vehicles and used electric cars.According to reports, the key components of the three-electric system, including BYD blade batteries and lithium iron phosphate batteries, are in a leading position in the world. The appearance design of the Chinese new energy models is also relatively advanced, and the luxury of the interior is compared to before. The improvement of similar models of fuel vehicles is quite large. Compared with Tesla, China's new energy vehicles have considerable cost-effective advantages and are "eatable" internationally.

According to industry insiders, the new energy used cars exported from China are all quasi-new and relatively new. On the one hand, new-energy used vehicles are an emerging industry developed in China in recent years. The new energy vehicles purchased by consumers have generally not yet entered the replacement cycle, and the supply of goods is insufficient. On the other hand, with advanced technology and high-cost performance, the demand for China's new energy vehicles in the international market is gradually rising, and foreign customers demand new or quasi-new cars. When the supply exceeds the demand, many used car export companies purchase new cars and convert them to used car exports after company transfer, accounting for a considerable proportion of new-energy used car exports.

In terms of models, in the European market, many users do not prefer cost-effective models such as A-class, A0, and A00, but B-class and C-class luxury models.

In terms of brands, new energy models such as BYD, Ideal, Weilai, Xiaopeng, and Hongqi have attracted much attention in overseas markets.

According to rough statistics, most of our target customer groups are corporate executives, urban elites, and electric vehicle enthusiasts.

Europe, the Middle East, and Central Asia are the most exported. Southeast Asia and South America have potential.

According to industry insiders, Europe, the Middle East, and Central Asia are the main export directions for China's used electric cars. The demand in these areas is expected to remain relatively strong in the next 5–10 years, while Southeast Asia and South America are potential markets to be developed.

The automobile industry's development is transitioning from traditional power vehicles to new energy vehicles. Environmental protection, energy conservation, and emission reduction have become global consensuses. Many countries are studying and formulating a timetable for banning the sale of fuel-efficient vehicles, especially many European countries with very strict emission requirements. Strictly speaking, this provides good conditions for entering new energy-efficient cars. Many Southeast Asian countries are economically underdeveloped, and electricity prices are currently more expensive than oil prices. Naturally, it is difficult for new energy vehicles to obtain enough room for development, but they also have unlimited potential.

The annual import volume of new energy vehicles in Uzbekistan has rapidly increased from more than 100 in 2020 to more than 1,000 last year. The demand and development speed of new energy vehicles in the country is astonishing, and the growth rate exceeds almost all industries.

Guaranteed after-sales

Selling a car is not a one-shot deal. The quality of after-sales service determines the brand's reputation and subsequent sales. The after-sales service outlets of Chinese car companies have not yet spread worldwide. If users feel bad, it will do certain damage to the entire Chinese brand. This is also the biggest problem facing the export of used cars.

So, who will be responsible for the after-sales problems of new-energy used cars sold overseas?

According to an industry insider who did not want to be named, it mainly relies on the service outlets of car companies. In foreign countries, the logic of selling used cars is the same as in China. As long as the warranty period is in the hands of the manufacturers, those car companies with dense service outlets abroad will have a better after-sales service experience for used car users. For example, NIO held a press conference at the Temperdeau Hall in Berlin, Germany, last year and has NIO Centres and NIO Spaces in cities such as Berlin, Hamburg, Frankfurt, Dusseldorf, Amsterdam, Rotterdam, Copenhagen, and Stockholm.

One of the most important reasons foreign users choose a certain brand is that the brand has a store in the local area. Users have seen it before, are familiar with the brand, and the after-sales service is also more guaranteed." Overseas customers mainly handle new and used cars exported overseas, i.e., the cooperative maintenance outlets designated by the distribution companies that purchase the products.

It will be hotter and is expected to exceed the export volume of new cars.

The export of new energy used vehicles has grown gratifyingly, becoming a bright spot in the rapid economic recovery in the new era after the epidemic.

Some experts believe China's used energy car exports are still growing and are expected to surpass new car exports. Another industry analyst pointed out that the currently used car export is not yet at its peak, the industry is growing rapidly, and a complete industrial chain has not yet been formed, especially regarding brand awareness. There is still a lot of room for development. As used car export companies continue to improve their resources and introduce new ones, China's used car export market will become even hotter.

Countries with traditional export advantages, such as Japan and South Korea, have high market understanding and quick response; Turkey is also "eyeing" new energy vehicles. At the end of last year, Turkish President Recep Tayyip Erdogan attended a production ceremony for a new car and personally tested it. And announced to the world: Turkey will sweep Europe with the first domestic electric car Togg.
There is a great demand for new energy vehicles in Europe, and Turkey's auto industry is strong and closer to the European market, which deserves our attention.

Quality standards and transportation guarantees are the keys.

To further improve the export business of used EVs, Guo Haibo revealed that the company plans to develop a vertical e-commerce direct procurement platform this year to serve Chinese suppliers and international buyers so that China's new Energy vehicles can more easily enter the international market.

Based on the rapid development of China's new energy vehicle market, the Ministry of Commerce has been promoting China's used car exports on a pilot basis and expanding the scope of the corresponding pilot program. But it is undeniable that the export of used electric cars is ascending, and some problems still hinder the development of new industries.Chen Gang said bluntly that used car export is an asset-heavy industry, and insufficient logistics support capabilities are a real problem.
With the increase in export volume, shipping logistics have become increasingly tense, and finding a cabin for a car ship isn't easy. Compared with last year, the freight price has risen by 30% this year and is still rising, which undoubtedly increases the burden on export companies.

In addition, while pursuing volume, the current profit of new-energy used car exports is still very low. How to improve the profit level is also a question that the entire industry should think about.

The national and industry standards for product quality in exporting used electric cars are still imperfect. It will affect this model's brand image and, more importantly, the word-of-mouth and brand recognition of the entire Chinese automobile in overseas markets. Export quality standards need to be issued urgently.