new energy vehicles
In 2022, 100 domestically produced Geely Englon TX5 taxis equipped by Southwest Aluminum will be officially put into operation in Dalian. It is reported that the aluminum content of this model is greater than 420 kg/vehicle, and cars with aluminum content greater than 400 kg are usually called all-aluminum cars. If the aluminum content of cars produced in the future can gradually rise to this number, the all-aluminum goal will be achieved. By 2030, if the output of all-aluminum cars can reach 25 million, the aluminum content of cars can exceed 10 million tons.
As of the end of June 2022, China's motor vehicle ownership has reached 406 million, of which about 10.01 million are new energy vehicles, breaking the 10 million mark. Why are new energy vehicles so popular? The reasons are as follows: First, the actual demand for energy conservation and emission reduction has greatly improved consumers' awareness of energy conservation and emission reduction; second, relevant departments and local governments have introduced a series of supporting policies and measures; third, the fashionable design of domestic new energy vehicles attracts consumers; fourth, the lower purchase and use costs.
On July 7, 2022, 17 ministries and commissions including the Ministry of Commerce, the National Development and Reform Commission, and the Ministry of Industry and Information Technology issued the "Notice on Several Measures to Promote Automobile Circulation and Expand Automobile Consumption", which clearly proposed to break the local protection of the new energy vehicle market, promote the consumption and use of new energy vehicles in rural areas, accelerate the construction of charging facilities such as residential communities, parking lots, gas stations, highway service areas, passenger and freight hubs, and guide charging pile operators to appropriately reduce charging service fees and other measures to support the development of new energy. Local governments have also actively introduced specific policies and plans. Between 2020 and 2022, China's new energy vehicle sales jumped from 1.3 million to 6.8 million. In 2022, China's electric vehicle sales achieved eight consecutive years of growth, and the number of electric vehicles in 2023 exceeded 18 million, accounting for about 50% of the world, more than four times that of the United States.
China's new energy vehicles are popular around the world
China is the world's automobile market. In 2022, China's production of pure electric vehicles and plug-in hybrid vehicles or new energy vehicles reached 7.058 million units, a year-on-year increase of 96.9%; sales reached 6.887 million units, a year-on-year increase of 93.4%; exports reached 679,000 units, a 1.2-fold increase over the previous year.
In the first 11 months of 2023, China's production and sales of new energy vehicles reached 8.426 million units and 8.304 million units, respectively, ranking first in the world; new energy vehicle exports reached 1.091 million units, a year-on-year increase of 80%.
Onboard batteries
-Core technology of electric vehicles (EVs)
At present, China's onboard batteries are world-leading in terms of price and technology. From January to November 2022, the onboard batteries of CATL and BYD accounted for 50.7% of the global market. In response to the rapid growth in orders, CATL has set a goal of 592 GWh of onboard battery production in 2025. Japan has set a goal of increasing the production capacity of Japanese companies' electric vehicles and decarbonized batteries in Japan and overseas to 600 GWh by 2030. CATL alone has a production target comparable to the total target of Japanese companies, and the target of Chinese companies is 5 years ahead of schedule.
In addition, the perfect full industrial chain has also made Chinese electric vehicle companies more stable and solid on the international stage. A number of companies such as BYD, Geely, Weilai, Xiaopeng, and Great Wall have perfect industrial chains.
Chinese car sales in Europe have soared
Due to their novel designs and reasonable prices, Chinese cars are particularly popular in Europe. After SAIC Motor acquired the traditional British brand MG in 2020, it rose to 24th place among the best-selling European car brands, with deliveries in Europe reaching 113,000 in 2022, far exceeding similar companies such as Jaguar and Land Rover, and even more than Honda Motor Company. The total sales of Chinese brand cars in Europe in 2022 exceeded those of old companies such as Mazda and Suzuki. China's share of electric vehicles has reached 9%, almost twice that of 2021.
Chinese electric vehicles have a huge price advantage. From 2015 to the first half of 2022, the average price of electric vehicles will be reduced to only 32,000 euros, and the annual manufacturing cost of each vehicle is about 10,000 euros lower than that of Western competitors. BYD's ATTO3 is priced at about 3.8 euros in Europe, while the average price of electric vehicles in Europe is 50,000 to 60,000 euros.
Chinese cars are popular in the Russian market
In recent years, Chinese cars have won unanimous praise in Russia for their high quality, economy and reliability. Among the traffic on Russian roads, in addition to local Lada cars, the most are Chinese brand cars. By the end of 2022, there will be 1,041 Chinese brand car dealers in Russia, accounting for almost one-third of the total number of Russian car dealers. In 2022, Russia opened 487 new Chinese car sales stores. This year, Russia imported a total of about 117,000 passenger cars from China, an increase of 40% over the previous year. From January to October 2023, China exported about 730,000 cars to Russia.
Russian auto industry insiders pointed out that compared with other foreign cars of the same price, Chinese cars often offer more fashionable exterior designs and richer and more interesting configurations, achieving a perfect balance in terms of decoration level, price and technology, and the warranty time of Chinese cars is also longer, even up to 7 years or 200,000 kilometers, which is unprecedented in the world's auto industry. Due to the impact of the Russian-Ukrainian conflict, Western car companies have withdrawn from Russia, creating more opportunities for Chinese cars to enter Russia. Since 2023, Chinese auto sales data show that Chinese cars have become the sales champion of foreign cars in Russia. Among them, Chinese cars account for 8 of the 10 best-selling sports utility vehicles in Russia. In the future, with the eager anticipation of Russian consumers and auto assemblers, it can be foreseen that more and more Chinese brands will blossom and bear fruit in the Russian market, injecting fresh vitality into the development of the Russian auto market.
Chinese cars marching into the Mexican market
2022 is a year of rapid growth for Chinese cars in Mexico. This year, Mexico sold a total of 1.086 million light vehicles. The Chinese brands ranked at the top in terms of year-on-year sales growth. SAIC MG sold about 48,000 vehicles, an increase of 194.1% over last year, ranking 8th in market share. JAC Motors increased by 99.4% year-on-year. Motornation, which sells BAIC, Changan and Jiangling Motors, saw its sales increase by 210.7% year-on-year.
From January to November 2022, Mexico imported about 651,000 vehicles, of which 153,000 were Chinese vehicles, accounting for about 23.5%. From January to October 2023, China exported 330,000 vehicles to Mexico, an increase of 71% year-on-year. Mexico has become the second largest market for China's automobile exports.
Chinese electric vehicles enter the Australian market
Currently, there are about 300 electric vehicle companies in China, with more than 4 million charging piles installed. It is not only the domestic market that is prosperous. Chinese automakers are entering the European, Middle Eastern, Southeast Asian and Australian markets. In 2023, more than a dozen new Chinese electric vehicles will enter the Australian market, including BYD and SAIC MG, with a price of less than AUD 50,000 per vehicle, which is very competitive. A market survey by the Sydney Electric Vehicle Committee shows that more than half of Australians now think that their next car will be an electric car, and cheap and good Chinese cars are their first choice.
Chinese electric vehicles enter the Japanese market
At the end of January 2023, BYD's pure electric SUV ATTO3 began to be sold in Japan, taking the first step to fully enter the Japanese passenger car market. Japanese media believe that BYD has brought new products and technologies with impact. In recent years, Chinese automakers have accelerated their pace of entering the Japanese market and won the trust of Japanese consumers with good quality and low price.
Japan is an important global auto market, but the penetration rate of electric vehicles is low. The Japanese government plans to sell all new cars in the country by 2035 as electric vehicles, and has introduced policies to support the electrification of automobiles. Despite policy support, the Japanese auto manufacturing industry is not positive. In 2022, pure electric passenger cars accounted for only 1.7% of Japan's total auto sales, far lower than China's 19% and Europe's 11%. Traditional Japanese automakers produce fuel vehicles with large sales and high profits, and lack the motivation to transform. In 2021, Japan's production of pure electric vehicles will account for less than 1% of the global production capacity. In the next few years, Japan's electric vehicle market may accelerate its development.
Japanese consumers are very concerned about the trend of overseas automobile electrification, and it is expected that China's ATTO3 car will have considerable sales in Japan. China's SAIC-GM-Wuling Automobile Co., Ltd. also plans to launch its light electric vehicle Hongguang MINI EV in Japan. After years of intensive cultivation, Chinese automakers have made a name for themselves in the Japanese electric commercial vehicle market with their advantages.
In 2015, a company in Kyoto, Japan purchased 5 electric buses, marking the beginning of Chinese automakers entering the Japanese electric bus market. In order to win the trust of Japanese users, BYD invited Japanese designers to participate in the design of electric buses, ensure that maintenance services cover every prefecture in Japan, and ensure that parts are supplied to the whole country within 48 hours. By the end of 2022, BYD has occupied about 70% of Japan's electric buses and plans to sell 4,000 units in Japan by 2030.
In addition, because Chinese freight trucks are inexpensive and of good quality, and Chinese companies have continuously made technological breakthroughs in vehicle battery life and charging time, Chinese freight trucks are also favored by the Japanese market. In 2021, Sagawa Express, a leading Japanese logistics company, announced the purchase of 7,200 electric trucks produced by China's Guangxi Automobile Group. In the same year, SBS Holdings, a large Japanese logistics company, announced the purchase of 10,000 Chinese electric trucks.
The export growth momentum of Chinese cars in Southeast Asia and India and other markets is significant
The export growth momentum of Chinese cars in the Southeast Asian market is particularly significant. For many years, Japanese cars have dominated the Southeast Asian market, but with the slow progress of car companies in transforming to electric vehicles, it has created a good opportunity for Chinese cars to enter the region. From the perspective of China's new energy vehicle export destinations from January to October 2023, exports to the Asian market are approaching the European market, and exports to Thailand have exceeded the UK. In the Southeast Asian market, Chinese cars and Japanese cars are competing with each other.
BYD SUV ATTO3 is a light electric vehicle equipped with a 60 kWh battery. This crossover won a five-star rating in the 2022 European New Car Assessment Program (Euro NCAP) test and showed excellent range. ATTO3 began to be sold in Australia, India and Thailand in early 2023, and is also ready to be sold in Europe.
Chinese cars are popular in the South African market
In terms of car registrations or sales, Japanese cars such as Toyota, Suzuki and Nissan dominate the South African market. European brands such as Volkswagen of Germany and Ford of the United States also have a certain market share. However, since 2022, Chinese cars have begun to enter the South African market. The first to enter the market are family SUV models. SUVs such as Haval and Chery of China Great Wall Motor Company have surpassed some Japanese, American and European brands in sales.
The reason why Chinese cars have successfully entered the South African market is first because of "value for money". Compared with competitors, Chinese cars have cost advantages and are competitive. In recent years, China's Chery first launched the SUV Tiggo 4-pro, and then has been improving the quality of cars and building a reliable dealer network, and later launched the mid-size car Tiggo 7-pro and the top model Tiggo 8-pro. The company also provides South African dealers and customers with a large parts warehouse, a strong warranty and service plan, and 24-hour roadside assistance. Chinese cars have even become a powerful diplomatic tool: in August 2023, during the BRICS leaders' meeting in Johannesburg, Haval and Chery provided hundreds of cars for the meeting and were widely praised.
Mainland electric vehicle companies
Gathering in Hong Kong to set up outlets
Mainland electric vehicle industry-related companies have set up dealerships in Hong Kong to expand into the global market with the help of the local financial system. They will invest more than US$1 billion and create thousands of jobs. CATL, a leading global battery company, said in December 2023 that it will set up an international headquarters in Hong Kong, invest more than HK$1.2 billion, and recruit about 500 employees. Relevant people said that as China's automobile industry develops towards the international stage, it needs support in terms of funds and other aspects, and Hong Kong is a good starting point.
Other companies seeking to set up shop in Hong Kong recently include Hozon New Energy Automobile Co., Ltd. and Black Sesame Intelligent Technology Co., Ltd. in the field of smart car computing chips. These electric vehicle-related companies will invest about HK$8.6 billion and plan to hire thousands of local employees. BYD and Geely Automobile have already listed in Hong Kong. It is said that CATL and Hozon Automobile also have relevant plans.
Relevant people said that Hong Kong's own market size is not very large, but it has a high strategic position. It is a "bridgehead" to Southeast Asia and a "window" to display products and brands.
World's major automobile companies
Accelerate the construction of factories in China
Some major automobile companies in the world are accelerating the construction of electric vehicle (EV) production lines in China. Japan's Honda Motor Co., Ltd.'s two Chinese EV factories can be put into production this year. Germany's Volkswagen AG will also increase its production bases in China. The third EV factory in China has started production in October 2023. The Audi factory under the group will also build an EV professional factory in Jilin Province by the end of 2024, which is also Audi's first EV factory in China.
China's intelligent automobile production attracts attention
After years of development, Changan Automobile Company has demonstrated the power of "China's intelligent manufacturing". The most commendable one is the smart factory in Chongqing Liangjiang New District. Walking into the workshop, you can see densely packed robotic arms rising and falling, and unmanned AGVs (automatic guided vehicles) coming and going. In the second stamping workshop, 5 high-speed fully automatic stamping machines operate at a speed of 15 times/minute. A sheet of sheet material is fed into the "big mouth" of the stamping die, and drawing, trimming, shaping, punching, and flanging are done in one go - in just 4 seconds, an inner plate of a car engine cover can be formed.
Then, the inner plate enters the welding workshop, and rows of robotic arms automatically weld the parts. The automation level of the workshop is as high as 92%. One production line can complete the one-click cross-production of 4 models and 7 models at the same time. The production process is fully controlled by the central control room. It is the brain of the workshop. After receiving the market order, the staff only needs to "send with one click" on the screen, and the robot will automatically produce.
The general assembly workshop is even more intelligent: radar, sensors and other hardware facilities are loaded on the assembly line; the battery automatic assembly equipment is visually positioned and installed with the whole vehicle; the car system is installed in the car along with the onboard terminal; finally, the engineer flashes the program and activates the system. In just 18 hours, a brand new smart new energy vehicle was launched and drove off the production line.
In recent years, Changan Automobile has accelerated the construction of the SDA architecture platform. Through this smart car digital platform, central computing, integrated domain control, and reliable ring network mass production applications can be realized, and smart new energy vehicles can also complete "difficult actions" such as deformation, interaction, customization, and self-charging.
来源：中国有色金属报社
