China is still a Small Exporter of Automobile Exports

China's auto exports can be said to be a good news to celebrate in the context of the sluggish domestic auto sales since the first half of this year.

According to the data from the China Association of Automobile Manufacturers, although the overall sales of self-owned brands were sluggish in the first half of this year, exports have become the only bright spot. According to statistics, in July, domestic auto companies exported 73,300 vehicles, an increase of 57.70% year-on-year, exceeding the best month of 2008 before the financial crisis. In the first seven months of this year, a total of 454,400 vehicles were exported, an increase of 57.30% over the same period of last year. It is expected that it will surpass the historical peak of 644,000 vehicles in 2008.

Losing money and reaping profits, the good performance of export data has led domestic auto makers to find comfort in the sluggish domestic market.

Also from the China Automobile Association, from January to July this year, the top five export vehicle manufacturers are Chery, Chang'an, Jianghuai, Great Wall and Dongfeng. The export volume ranges from 80,000 vehicles to more than 30,000 vehicles. .

The author believes that the outstanding performance of export sales is a great comfort for Chery, because Chery is currently in a critical period of multi-brand strategic transformation, and at the same time, the problem of falling profits due to excessive R&D investment and unsatisfactory domestic sales Chery has brought a lot of trouble, so that the export sales of the red should be the biggest bright spot Chery Automobile this year.

Nevertheless, the export volume of Chinese automotive products still lags far behind the developed countries of the automotive industry such as Europe, the United States, Japan and South Korea. Although the total automobile production and sales volume is the world’s largest, it is still an absolute “little country” in the export of automobiles, and even more important. What's more, the performance of auto exports is also an important indicator to measure whether a country is a car power, and the weakness of Chinese auto brands in the world is undoubtedly revealed.

There are many reasons leading to the overall weakness of China's auto exports. The brand is the first to bear the brunt. The lack of world-class car brand enterprises has become the biggest problem that has impeded China's entry into a powerful automobile country. In the international market, Chinese cars often leave the impression of low prices and low quality, and the brand premium has a natural gap with European, American, Japanese and Korean brands. By seizing the market by way of price warfare, the reputation of Chinese car brands has been greatly affected.

The second is the lack of understanding of the laws and regulations of exporting destination countries and the impact of trade discrimination and protection policies of some countries. Chinese cars are hardly accessible in European and American markets. Except for the Great Wall gaining EU certification, other domestic automobile companies rarely find themselves in European and American markets. Highlights, people are more impressions of Brilliance German collision doors and Chinese cars in the Russian market encountered Waterloo, so the main attack on Asian and African and South American has become the preferred strategy of Chinese auto companies, but do not win the European and American markets for Chinese cars to obtain real International recognition still has little help.

Finally, the international financial crisis caused the downturn in demand in the international automotive market and the continuous appreciation of the renminbi. As a result, China’s autos have encountered difficulties in market development and price advantages. This has also caused China’s autos to experience a continuous export slump for more than two years until this year. Have improved;

More importantly, compared with world-class auto manufacturers, China’s auto industry still has a large gap in product quality, technical level, after-sales service, and marketing strategy. It is difficult to expect Chinese auto companies to make up for this short-term gap. .

How to break?

Solving the above problems one by one is the only way for Chinese cars to become major exporters. Specifically, Chinese auto exports must have patience. We must fully understand the local laws, regulations and market laws in exporting destination countries, pay attention to brand building and gradual infiltration, and accelerate localization of local factories so that we can truly promote Chinese autos. Enter overseas markets and break technical and trade barriers.

We have seen some gratifying phenomena. For example, the Great Wall mentioned above has obtained EU vehicle certification and the Great Wall, Chery, Lifan, Chang'an and other companies have accelerated the process of localization by building overseas factories. It is believed that with the improvement of the overall strength of the Chinese automobile industry and the increasing influence of the Chinese automobile brand in the world, it is just around the corner that China has become a world-leading automobile exporter.

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