Depth report

　　

China's auto production and sales have ranked first in the world for 14 consecutive years, and the production and sales of new energy vehicles have topped the world for 8 consecutive years. Thanks to the vigorous development of the new energy automobile industry, Chinese auto brands "lane overtaking" have been widely recognized in the international market with rich varieties, reliable product power and outstanding cost performance, with continuous breakthroughs in market share and continuous improvement in influence. Promote Chinese automobiles, especially new energy vehicles, to accelerate "going out".

As geographically adjacent and culturally closely linked partners, China and ASEAN have established extensive and in-depth cooperation. Fast-growing Chinese auto companies are actively targeting this emerging market with a population of nearly 700 million, deepening cooperation in emerging industries such as new energy vehicles.

On July 5, the China-Asean Emerging Industries Forum New energy automobile Industry Cooperation sub-Forum was held in Shenzhen. As the most dynamic and potential market in the world, China and ASEAN are actively promoting the development of new energy automobile industry and injecting new vitality into the economic and social development of both sides.

Wang Weiming, director of the first Department of Equipment Industry of the Ministry of Industry and Information Technology, pointed out at the meeting that ASEAN is China's third largest source of foreign investment and one of the fastest growing regions of China's outbound investment. In recent years, Malaysia, Thailand and other ASEAN countries have accelerated the transformation and development of electric vehicles, and China-Asean cooperation in the field of new energy vehicles has yielded fruitful results. Chinese new energy vehicle companies represented by BYD, Great Wall, SAIC-GM-Wuling, and Geely have successively opened a local model of building factories, purchasing parts locally, and selling locally, laying a solid foundation for the sustained and in-depth cooperation between the two sides.

The market share of Chinese cars in ASEAN has increased year by year, from less than 1% to more than 6% in the past five years

At present, more and more Chinese automobile brands have entered the ASEAN market and become the choice of consumers in ASEAN countries. Relevant data show that in 2022, China's total automobile exports to ASEAN countries will be 5.8 billion US dollars, an increase of 48%, accounting for 26% of the total automobile imports in ASEAN countries. Chinese auto brands' market share in ASEAN has gone from less than 1% to more than 6% in the past five years. In the first half of this year, China's automobile exports to ASEAN countries still maintained a rapid growth momentum.

In order to accelerate the pace of green development and promote the transformation of automobile electrification, ASEAN countries have adopted various preferential measures, such as reducing and reducing import tariffs on new energy vehicles and key components, providing subsidies for consumers to purchase cars, and reducing and reducing consumption taxes. Data show that in 2022, sales of new energy vehicles in Thailand, Indonesia, Malaysia, Singapore, Vietnam and Cambodia exceeded 51,000 units, an increase of about 219% from 2021.

In this context, the influence of China's new energy vehicle brands in Southeast Asia is gradually rising. Great Wall Motor, for example, has normalised operations in Thailand, Malaysia, Laos and Brunei over the past two years. In January this year, Great Wall Motor reached a strategic partnership with TAG Cheng 'an Group Co., LTD. In June, the "Media Tasting listing and test Drive Activity" was held in Phnom Penh, the capital of Cambodia, and 5 models were listed locally... At present, the intelligent products of Great Wall Motor have accumulated nearly 20,000 owners in ASEAN countries.

Nezha also recently announced its official entry into the Malaysian market, with its model Nezha V launched in Malaysia. Nezha has also established a Thai subsidiary, launched three overseas products including the Nezha V right rudder version, and established its first overseas factory in Thailand.

The relevant person in charge of SAIC-GM-Wuling brand also said in an interview with the media that China Wuling New Energy will increase the strategic layout of globalization and rapidly promote the new energy system to go out, and the first stage is to open up the Southeast Asian and Middle East markets with Indonesia as the center.

"As China's auto exports continue to grow, overseas direct investment will also enter a stage of rapid development. More and more Chinese car companies are actively entering the ASEAN market to invest and build factories." China Association of automobile manufacturers deputy chief engineer Xu Haidong said.

Thailand is the largest market for new energy vehicles in Southeast Asia, and also the country with the largest increase in imports of Chinese cars in 2022 among ASEAN countries, reaching 255%. According to statistics, among the top five models of pure electric vehicles in Thailand in 2022, Chinese brands account for four-fifths, which are BYD ATTO 3 (Yuan PLUS), Great Wall Eura Good Cat, Zhengda SAIC MG EP and MG EV.

For example, BYD ATTO 3 launched in the Thai market in October last year, set off a "buying wave", and got 10,305 orders in just 42 days. Since the beginning of this year, BYD has been the champion of new energy vehicle sales in Thailand for four consecutive months.

Thailand's Kaitai Research Center expects that in 2023, Thailand's pure electric vehicle sales are expected to reach 50,000, of which the Chinese brand pure electric vehicle market share is expected to increase from 78% in 2022 to 85%.

In terms of production cooperation, both Great Wall and SAIC set up factories in Thailand for production. Byd announced last year that it would build a passenger car factory in Thailand. The plant is expected to start operations in 2024 with an annual production capacity of about 150,000 vehicles, which will be delivered to ASEAN markets including Thailand. Gac, Changan, Nezha and other car companies have also announced the construction of overseas passenger car production bases and key parts production bases for new energy vehicles in Thailand this year. The Thai Investment Commission recently announced that in June, Ningde Times reached a cooperation agreement with Thailand's Arun Plus Co., Ltd. on High Efficiency Cluster technology (CTP) to help Thailand become a battery production center in Southeast Asia.

In addition to Thailand, Indonesia and Malaysia also have vast new energy vehicle markets. In 2015,  SAIC-GM-Wuling built a factory in Chicalang, Indonesia,  and continuously made local modifications to meet the needs of the local market. The factory now produces a total of  eight models. In 2022, Wuling Indonesia sales exceeded 30,000 units, an increase of 17%; Up to now, more than 100,000 vehicles have been sold. In 2017, Geely joined hands with Malaysia's old car manufacturer Proton to layout Southeast Asia,  bringing it advanced product technology experience, and currently the brand continues to improve,  sales and market share ranked second in Malaysia for four consecutive years.

In the process of "going out", the most critical thing is to continue to improve the core competitiveness of products,  develop products that meet the needs of foreign consumers,  and continue to strengthen the internationalization level of brand building.

China's automobile market is the world's largest market,  China's automobile industry is also the world's most dynamic stage,  China and Southeast Asian countries in the automobile,  especially in the field of new energy vehicles cooperation complementary advantages, huge potential, broad prospects,  such cooperation can make the entire new energy automobile industry to move forward quickly,  so as to achieve win-win development.