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New energy vehicles export drive accelerates

By FU SHENG | CHINA DAILY | Updated: 2023-04-27 07:05
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Workers assemble NEVs for overseas markets at a factory in Ganzhou. ZHU HAIPENG/FOR CHINA DAILY

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SAIC's popular MG Electric hatchback, launched last year, is the first model developed by the company aimed at global markets.

The result of efforts by SAIC's Chinese and British teams, the model has won top ratings in new car quality programs in different regions, including the strict European New Car Assessment Program.

Overseas sales of the model are expected to reach 150,000 this year, a result Zhao said is "motivating and assuring".

He said the model's research and development, or R&D, costs of about 1 billion yuan ($145.6 million) are likely to be recovered in about 30 months, half the comparable time for most models.

A second global model will follow later this year, and three to four others will be developed for markets worldwide by late 2024 or early 2025, Zhao added.

As well as products, a sustainable sales network is crucial, Zhao said, adding, "Without our local dealers, we can't reach our customers, no matter how good our products are.

"We give top priority to the comments we receive from our sales teams. We listen to them and discuss ways to ensure our network is working well."

SAIC has been China's largest vehicle exporter for seven consecutive years. Last year, it exported 1.02 million, almost one-third of the nation's total vehicle exports.

Zhao expects the figure to grow to 1.2 million this year, with Europe, the Middle East and Mexico among the company's main markets.

By 2025, SAIC aims to sell at least 240,000 NEVs annually in Europe as part of its goal to deliver 1.5 million vehicles to overseas markets that year.

Patrick Yang, general manager of BAIC International Development Co, said the rising popularity of made-in-China vehicles is linked to Chinese carmakers' repositioning their models.

"Chinese vehicles used to be seen merely as modes of transport, so local customers wanted to buy them as cheaply as possible. But we are now moving upward with our competitive new generation products," he said.

High-profile buyers of the manufacturer's BJ40 SUV include Francois Steyn, a professional rugby union player in South Africa, and Keylor Navas, who keeps goal for the Costa Rica national soccer team and currently plays for Nottingham Forest in the English Premier League.

Yang said the average price for BAIC's passenger vehicles sold overseas will rise to $14,000 this year from about $12,000 in 2022.

An Conghui, president of Geely Holding Group, said Chinese carmakers have been followers in the age of gasoline vehicles, but opportunities are now emerging for them to become leaders.

Amid a global tide of electrification, Chinese companies enjoy a first-mover advantage thanks to their production volumes, complete R&D systems, and the faster pace at which they launch new models, An said.

He added that Geely's premium arm, Lynk& Co, exported more than 35,000 vehicles last year, ranking first among Chinese carmakers with sales of more than 250,000 yuan ($36,382) for each vehicle. Some 97 percent of the marque's exports were NEVs.

An warned that foreign carmakers are catching up in terms of electrification, so Chinese brands must seize their opportunities if they want to become global companies.

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