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The United States has long been known as the "country on wheels." This is due to the fact that the United States has a sizable number of cars in use, with basically every household having at least one car, and almost everyone having one. In addition, the United States is also the first country to have an automobile production line, and the automobile industry is developed, giving birth to many famous car brands.
In addition, compared with other countries, the United States has fewer restrictions on vehicles, which has led to the prevalence of car modification and racing activities in the United States, and the car symbol has gradually become an important part of American culture and one of the important materials in American movies.
Thus, the title of "Kingdom of Cars" began to exist in the United States.
However, with the gradual rise of China's industrial and new energy vehicles, some traditional oil vehicles are gradually replaced by new energy vehicles on the field and on the road, and China, which mainly generates new energy vehicles, has begun to emerge in the international automobile market, while the United States, which is dominated by fuel vehicles, has begun to gradually decline its status as an automobile kingdom.
China's automotive export market is beginning to become the focus of the world
According to the latest data released by relevant agencies, from January to May 2024, the mainland exported more than 2.4 million vehicles to other countries, generating more than US$40 billion in revenue.
In terms of geography, the automobile export market can be divided into the European market, the Asian market, the North American market, the South American market, the Oceania market, and the African market.
Among them, the European market and the Asian market were the main export markets, reaching 830,000 units (European market) and 840,000 units (Asian market), respectively.
The remaining markets exported 280,000 units (North America), more than 270,000 units (South America), 90,000 units (Oceania), and 130,000 units (Africa).
At the national level, the largest number of exports to Russia reached 370,000 units, which may be due to the economic sanctions imposed by NATO members, but this provides a good opportunity for Chinese cars.
Of course, Chinese cars themselves have excellent quality, among which new energy vehicles are in a leading position in the world, and they also have good sales results in other countries.
Among them, there are more than 60,000 vehicles in Turkey, more than 60,000 vehicles in the Philippines, more than 80,000 vehicles in Australia, more than 90,000 vehicles in Saudi Arabia, 100,000 vehicles in the United Kingdom, 110,000 vehicles in the United Arab Emirates, 120,000 vehicles in Belgium, 160,000 vehicles in Brazil, and 190,000 vehicles in Mexico
The Mexican country is influenced by the United States, and the automobile market and culture also have a certain reputation in the world, so the Mexican country has a large demand for Chinese cars.
However, the 160,000 units in the Brazilian market in the first five months of this year is a real surprise, as it has a year-on-year growth of 640%, which may be related to the decline in China's maturing new energy vehicle industry and battery raw materials.
Chinese automobiles, especially new energy vehicles, are cheaper and less expensive to use, but the driving experience is excellent, which may be the reason for the short-term rapid growth of Chinese automobiles in the export market of individual countries.
With the continuous research and development of Chinese new energy vehicle companies and the continuous iteration of new products, better Chinese cars will further open up the foreign car market, and the unexpected growth of the Brazilian market will no longer be a special case.
At the same time, China's car exports are growing faster than any old industrial country, which also lays the foundation for China to become another auto kingdom.
High tariffs: an obstacle to China's car exports
For Chinese auto companies, in addition to the problem of R&D is an obstacle to car upgrading, high tariffs in individual countries have gradually become an obstacle to China's auto exports.
Looking at the data from January to May 2024, the market share in Europe and the United States has decreased year-on-year.
Among them, the top three countries with the largest decrease in the number of vehicles exported were Australia (down 19,000 units), Spain (down 17,000 units), and Israel (down 14,000 units).
The decline in sales in these regions may be due to the protection of the local auto industry by the local state, or to curb the economic development of China.
Judging by the notice issued by the European Commission earlier in June this year, increasing tariffs is a common trick they use. The EU has increased tariffs of 38.1%, 20% and 17.4% on Chinese automakers SAIC, Geely and BYD.
At the same time, if the sample is not tested, a 21% tariff will be imposed, although these companies are actively cooperating with the EU investigation and will not be treated better in terms of tariffs.
Of course, if they do not accept the European Commission's investigation, Chinese auto companies will be subject to an additional tariff of 38.1%.
Although the Chinese diplomatic department and the China Association of Automobile Manufacturers expressed their views and disapproval of the EU's decision, this did not have any impact on the final outcome.
The United States is also a country with high tariffs on Chinese cars, which also reflects the fact that European and American leaders always look at competition with a "zero-sum game" mentality.
The development of China's automobile industry and new energy industry will have a certain impact on the European and American economies, but blind resistance is certainly not the most ideal solution. Only a win-win situation is the way out.
Some European and American automakers have also expressed concern about the decision-making of European and American leaders, arguing that such tariff policies will provide little protection to the local industrial system.
On the one hand, sanctions at the level of European and American countries do not help the products of local auto companies, but are easy to attract counter-sanctions from China.
On the other hand, European and American traditional automobile companies have always developed in line with the concept of free trade and respect for technology, and have gradually become world-famous old car companies.
Policies at the level of European and American countries have not only not been approved by established car companies, but also have not been supported by their own people.
Taking the U.S. market as an example, although the U.S. government has imposed additional tariffs on Chinese cars by more than 100%, there are also many people who buy Chinese imported cars in the Mexican market, which is also the reason why Chinese cars are hot in the Mexican market.
Of course, the Chinese government has also quickly responded to the high tariffs played by foreign governments, increasing the tax amount of high-emission fuel vehicles, and forming a certain protection for Chinese automobiles.
The reason for the hot market of China's auto exports
China has lagged behind in the automotive industry until around 2010.
This is mainly related to China's vigorous development of industry for decades, and the complete industrial system enables the localization of various parts required for automobiles to form a cost advantage.
On the other hand, China's strategy of vigorously developing new energy is the main reason for the rocketing rise of China's auto export market. Under the high subsidy of the Chinese government, but a large number of new energy vehicle companies, such as BYD, Geely, Ideal, Xpeng, NIO, etc.
After several years of technology accumulation, new energy vehicles have gradually had the advantages of "high quality and low price", and compared with fuel vehicles, the advantages are obvious.
Therefore, Chinese automobiles are exported overseas and are loved by the majority of people. In fact, the old European and American automobile companies are not not paying attention to the development of new energy vehicles, and they also began to enter the game early.
For example, Volkswagen's ID series and BMW's i series have related products entering the market, but the market feedback is not good.
The difference with Chinese companies is that these other countries do not have strong support at the national level.
Chinese automakers are vigorously developing the new energy industry and providing a guarantee for emerging Chinese auto companies, which is also the fundamental reason for the current hot Chinese auto export market.
The future development of China's automobiles
Although China's automobiles are besieged and blocked by European and American countries, this is only a short-term, and the future development of China's automobiles is unstoppable under China's new energy industry support policies.
Of course, this is inseparable from the obvious advantages of Chinese automobiles. First of all, the price of Chinese cars is cheap, and the lithium iron phosphate batteries produced by BYD enterprises have independent intellectual property rights, and their stable and cheap advantages provide a reliable guarantee for the popularization of BYD cars.
The mass production of BYD cars has also reduced BYD's costs, and even without state subsidies, it has been able to achieve considerable profits.
This advantage of using production to reduce production costs is not available to other automakers, and can only be achieved in China, a country with a large population.
The local market, which has a large demand for low-cost cars, has created BYD's glory and has become the most stable cornerstone of BYD's development. At present, BYD has set off a "low-price" trend in the domestic and international markets around low-cost cars, and has become a leader in the automotive industry.
Secondly, Chinese automobiles provide more car selection solutions, and the market is on the rise.
For example, Geely's Lynk & Co has won many awards in relevant domestic or international professional competitions, providing a new choice for customers who choose performance cars. In the field of civilian vehicles, Li Li, Xiaomi and Xpeng have become more and more products favored by domestic and international customers with "fashion and comfort" as their selling points.
Huawei has teamed up with some car companies to build cars with intelligent driving functions, and technologies such as intelligent navigation display headlights and driverless parking have also made waves in the market.
Finally, let's talk about NIO, which provides a quick battery swap function to reduce users' battery life anxiety.
China's auto industry is full of flowers, competition and vitality, and will continue to maintain it for a long time in the future. To sum up, Chinese auto companies have obvious advantages, and Chinese auto companies will continue to develop and grow further in the future.
Industrial development is one of the core factors affecting the development of a country, and the automobile industry is the pearl of a country's industrial system.
China's rise is inseparable from the development of China's industry and the vigorous development of the automobile industry.
At the same time, the boom in China's auto export market is the best proof of China's rise. However, the development of China's automobile is still in its infancy, and the promotion of automobile culture and film and television related industries still need to be developed, but this cannot affect China to become the next automobile kingdom!
What are your thoughts on China's car exports? Welcome to discuss in the comment area!
Information sources:
CCTV: China Automobile Association: From January to May this year, the production and sales of new energy vehicles in mainland China increased by 30.7% and 32.5% year-on-year