The Rise of Chinese EVs: Foreign Daughter-in-Law Buys Car to Ship Back to Central Asia

Indeed, Chinese cars are quietly becoming popular in Central Asia and some European cities, gaining a firm foothold in overseas markets based on quality and cost-effectiveness and continuously expanding their territory.

According to data from the China Association of Automobile Manufacturers, China will export 3.11 million automobiles in 2022, a year-on-year increase of 54%, surpassing the United States and Germany to become the world's second-largest automobile exporter. In the first quarter of this year, China exported 994,000 cars, a year-on-year increase of 70.6%. The "acceleration" of Chineseally produced cars going overseas has also pushed China into the battle for the world's number one car export.

At the same time, the production and sales of new energy vehicles boomed in the first quarter, and the export data was also excellent. The latest data shows that the export of new energy vehicles in the first quarter was 248,000 units, a year-on-year increase of 1.1 times. In March, the export of new energy vehicles was 78,000 units, a year-on-year increase of 3.9 times.

Chinese fuel vehicles have become popular in Asia-Pacific, South America, Africa, Southeast Asia, and other places. Chinese new energy vehicles are quietly starting their journey to developed countries such as Europe, America, and Australia.

01 The foreign daughter-in-law bought a car and shipped it back to her hometown in Central Asia.

In mid-May, Natasha received her father's demand for a car and finally bought a Chinese Changan CS75PLUS for her father on May 30. During the car purchase period, Natasha and her husband repeatedly selected nearly 10 brands, and the superior cost performance of Chinese cars left a deep impression on their family.

The earliest idea to buy a car in China and then ship it back to Kazakhstan originated from a photo sent by my father, showing an old Jietu X70 purchased from Dubai by my father's friend in Kazakhstan.

Natasha's father said that he himself is considering buying a Chinese car. Natasha lives in Yixing, Jiangsu, and her father asked her to help choose vehicles locally. In the videos and photos sent by her father for several days, Natasha and her husband learned that Chinese cars in Kazakhstan are sweeping the market, and local residents are full of praise for Changan, Geely, Great Wall, Chery, and other Chinese cars.

As Kazakhstan and China are close neighbors, it is not difficult to export a car from China to Kazakhstan. Natasha learned from her friends that if she chooses to pick up the car in Almaty, Kazakhstan, the bare car plus the vehicle qualification certificate and vehicle permit can be transported to Xinjiang Horgos customs declaration export in Yixing and finally arrive in Almaty Figure, took about two weeks.

To help her father buy a car, Natasha and her husband ran around for several days, going back and forth to the 4S store for comparison and screening. The two first marveled at the full sense of technology of BYD's hybrid and pure electric models, but they had no choice but to give up due to the severe cold weather in Kazakhstan. They lamented the majestic appearance and spaciousness of Hongqi, Jietu, Chery, Geely, Great Wall, and other models. Space. Considering the budget and her father's requirement to be a fuel vehicle, four-wheel drive, large space, and other rigid configurations, Natasha and her husband finally finalized the Changan CS75PLUS.

Natasha joked in the video: "My Dad's friend bought an old-style car from Dubai, which took three months to arrive. But it only takes two weeks to buy it from China. It is still the latest model. The quality is guaranteed, and it makes me look good!" June 15 On the 1st, Natasha uploaded the video of picking up the car again. After paying for the car, the Chineseally-made car was sent to Horgos on the same day.

Natasha mentioned in the video that the actual bare car price of the Changan CS75PLUS she bought was about 100,000 yuan, but when it was exported to Kazakhstan, the freight, export customs fees, Chinese taxes, and taxes in Kazakhstan along the way totaled More than 90,000 yuan, the estimated cost of the car's final landing in Kazakhstan is around 200,000 yuan.

According to information from the Ministry of Commerce of China, in the first quarter of 2023, China's auto exports to Central Asian countries will increase by 121% year-on-year. In Khorgos, the number of companies engaged in cross-border car trade agencies and the scale of drivers responsible for driving cars across the border are increasing rapidly.

02 Chinese cars are recognized in Australia

Not only in the Central Asian market but also in developed countries such as Australia, where Chinese auto brands are gradually being recognized.

Mr. Zhu works in Queensland, Australia, and is a salesman for Great Wall Motors with nearly four years of sales experience. The Great Wall Motor 4S store he works in is located in the Moorooka district of Brisbane, the capital of Queensland, where competition is fierce. "Looking around, car dealers surround us, some selling new cars and some selling second-hand cars. Next to it is Toyota, which occupies the largest market share, and others include Kia, Mitsubishi, Korean brand Ssangyong, Indian brand Mahindra, and so on. "Mr. Zhu told the "IT Times" reporter.

In Australia, old brands such as Toyota and Mazda have occupied a large market share for a long time. Mr. Zhu said Australian customers often compare Chinese cars with Toyota and BBA. He and his colleagues feel excited and proud that, in recent years, the Australian market has gradually recognized Chinese auto brands. Thanks to the export of some Chineseally produced hybrid models to Australia, the sales of his car dealership have been rising steadily.

"The sales volume of Great Wall Motors in Australia from January to May this year has increased by 123% year-on-year. Now our store sells an average of 70 units per month, and sometimes it can reach 100 units. My personal monthly sales volume can also exceed 20 units." Mr. Zhu mentioned According to statistics, the Chinese and foreigners who come to buy cars account for half and half. Through in-depth contact, he feels that local Australian residents have high requirements for vehicle chassis, space, and off-road capabilities. Therefore, models with large space and stable chassis, such as the Great Wall Cannon, Off-Road Cannon, and Tank 300, are more in line with the needs of residents. Between 30,000 and 50,000 Australian dollars. "Most of the vehicles sold by Great Wall Motors locally are fuel vehicles, and I estimate that nearly 30% are hybrid models, and pure electric vehicles have not yet developed their strength." Mr. Zhu said.

To Mr. Zhu's surprise, the high-definition reversing images and technological interiors of hybrid models such as Great Wall First Love and H6 that will arrive at the store in the second half of 2021 have made many locals stop and praise them when they visit. Now, Chinese hybrid models have established a good reputation among local users, "In addition, compared with the waiting time of Japanese cars, which often takes half a year or even more than a year, Chinese cars have a short waiting period, and ships are shipped to Australia every month. It is also well received in terms of cost." Mr. Zhu believes that Chinese hybrid models will have great potential in the Australian market in the future.

 

"Chinese pure electric vehicles will have a long way to go to develop in Australia, mainly relying on the layout of charging piles, which is not perfect yet." Mr. Zhu told the "IT Times" reporter that the weather in Australia is not as severe as in Central Asia. , the coldest time is around 0 degrees, so pure electric vehicles have a lot of room for development in the future. But at present, most Australian gas stations do not have to charge piles, and only third-party charging piles are equipped in the parking lots of supermarkets. "Based on my observation, new energy car companies have not yet launched a large-scale charging pile layout in Australia. , which undoubtedly limits the development of pure electric vehicles, at least in the short term."

Relevant data show that by the end of 2022, the Chinese vehicle-to-pile ratio (the number of new energy vehicles to charging piles) will be 2.5:1. According to the target, the vehicle-to-pile ratio will be 2:1 by 2025 and 1:1 by 2030. 1. The vehicle-to-pile ratio in the European and American markets is between 15:1 and 20:1.

"Among the new energy models in the Australian market, apart from the pure electric Tesla, BYD's hybrid is the best seller." Mr. Zhu revealed that besides Great Wall, Chinese brands in Australia include BYD, SAIC MG, and SAIC Maxus. All can occupy a place, and BYD's sales are even more impressive. "This is exciting news for Chinese brands to go overseas."

During the conversation with the reporter, Mr. Zhu successfully signed two orders with 2 Indian users, "They are Uber special cars, and the hybrid models are cheap and convenient to drive in urban areas, so they ordered 2 in one go ." Between the words, Xiao Zhu was full of excitement and pride.

03 Booming export of Chinese cars

According to data released by the Federal Chamber of Automobile Industries of Australia (FCAI), sales of new cars in Australia rose by 1.3% to 82,000 in April this year. In terms of brand market share, Japanese Toyota still ranks first with a market share of 14.6%, followed by Japanese Mazda with a market share of 8.4%, and South Korea's Kia with a market share of 7.5%. Tesla of the United States ranked seventh with a market share of 4.5%. China's BYD sold 1,118 vehicles in April in Australia's EV market, second only to Tesla.

While the Australian market continues to develop, Chinese new energy vehicles are also looking for breakthroughs in the European market. New energy vehicles have become a bright spot in China-EU economic and trade exchanges. According to data released by the China Association of Automobile Manufacturers, China's new energy vehicle exports will double in 2022 year-on-year. One of every ten new energy vehicles in Europe comes from China.

In the international auto market, Japanese and German brands still occupy a large market share, but the impact of Chinese auto brands cannot be ignored more and more.
On June 8, SAIC Motor released its production and sales bulletin for May, showing that the number of automobile exports has grown against the trend, which means that the proportion of overseas markets is increasing significantly. From January to May this year, SAIC Motor exported 438,500 vehicles (including sales of overseas bases), a substantial increase of 47.7% year-on-year, setting a record high for the same period. Over the same period, Great Wall Motors accumulated 98,900 overseas sales, achieving "double growth"; Changan Automobile's overseas sales of its own brand were 96,200, a year-on-year increase of 17.05%; BYD's overseas sales were close to 63,800, surpassing last year's 55,900 vehicle exports.

Moreover, Chinese car companies are upgrading from "products going overseas" to "manufacturing going overseas."

Geely, Chery, and other car companies have overseas built over ten car production plants. At the 2023 Shanghai Auto Show, Changan Automobile released the "Hai Na Bai Chuan" plan. By 2030, it will establish more than 20 localized marketing organizations in overseas markets, and the number of overseas outlets will exceed 3,000. In terms of new energy vehicle production lines, in September last year, the 10,000th new energy vehicle of Great Wall Motors Thailand factory rolled off the production line. Great Wall Motors has established the first new energy ecosystem in Thailand. In March 2023, the foundation stone of BYD's first overseas factory was officially laid in Thailand. It is expected to start operation in 2024, with an annual production capacity of 150,000 vehicles. The cars produced by the factory are expected to be exported to Europe and ASEAN countries.