Export Surge of Made-in-China Cars: Where Are They Sold?

Russia, Eastern Europe, Southeast Asia Mainly Targeted for Sales in Low-Income Areas

[Asia Economy Reporter Changhwan Lee] Chinese-made cars, which have had a minimal presence in the global automobile market until now, are recently expanding their base by significantly increasing exports, according to an analysis.

According to the report titled 'Attention Needed on the Increase in Exports of Chinese Local Complete Vehicles' published on the 6th by the Korea Automotive Technology Institute, the overseas export volume of Chinese complete vehicles surged in the first half of this year, reaching the highest level in the past 10 years.

In the first half of this year, exports of Chinese passenger cars and commercial vehicles reached 828,000 units, more than doubling compared to the same period last year. Local brands such as Chinese-made Tesla, Chery Automobile, Changcheng Automobile (GWM), and Geely Automobile led the export growth.

The export regions are mostly countries with less political confrontation with China and lower income levels. The report explained that sales are focused on countries and regions such as Russia and Eastern Europe, Latin America, Southeast Asia, and the Middle East, where per capita income is lower compared to developed countries and political confrontation with China is less intense.

This is analyzed to be because Chinese complete vehicle brands lack the brand heritage valued in developed markets, and negative perceptions about the quality and safety of Chinese-made complete vehicles are widespread.

Regarding vehicle types, trucks (including pickup trucks), buses, SUVs (sports utility vehicles), and vans?commercial and semi-commercial vehicles where economic efficiency is more important in purchase decisions?are actively exported.

Recently, efforts to strengthen electric vehicle brands and rebranding to expand export markets have also been highlighted as noteworthy.

In the electric vehicle sector, taking advantage of the fact that the brand power of existing internal combustion engine vehicles does not apply, Chinese manufacturers are boldly challenging advanced markets such as Western Europe, where environmental regulations are rapidly tightening.

BYD has already established itself as a global commercial electric vehicle brand with an export strategy specialized in electric buses, and the recently notable Nio and Xiaopeng have also started exporting to European markets such as Norway.

Lee Hojung, senior researcher at the Korea Automotive Technology Institute, diagnosed, "China's domestic electric vehicle competition is intensifying due to an industry policy focused on eco-friendly vehicles (NEV), and the cost and quality competitiveness accumulated in the process is highly likely to translate into export competitiveness for electric vehicles."

He also forecasted, "Meanwhile, in the long term, if logistics and passenger service operators increase contract manufacturing orders to Chinese complete vehicle companies, it will significantly contribute to the increase in exports of Chinese local complete vehicles."

This content was produced with the assistance of AI translation services.