With the increasingly fierce market competition between domestic economy cars and minivans, Chinese auto manufacturers have actively explored overseas markets in search of new development space. However, experts believe that there is still a big gap between China's auto industry and the international advanced level. Enterprises should first identify their own product advantages and target markets before exporting automobiles, and avoid blind exports.
In recent years, as more and more international auto giants invest and produce in China, the competition in the Chinese auto market has become increasingly fierce. Local auto companies have begun to seek new markets, and the scale of auto exports is increasing. Statistics from the Tianjin Customs show that from January to April this year, the Tianjin port exported 11,417 vehicles with a value of 80.52 million US dollars, an increase of 96% and 86% respectively over the same period of last year.
The Tianjin Port is China's largest import port for automobiles, and 40% of China's imported cars are imported through the Tianjin Port. At present, the port is becoming an important port for China's auto exports.
Tianjin Customs said that although there is a gap between China's auto industry and the international advanced level, China’s auto exports still have advantages in certain areas. For example, domestic companies are currently making full use of China’s relatively low labor price and spare parts cost advantages. Low-price, high-quality automotive products gradually gain a firm foothold in the international market. Take Great Wall Motor Co., Ltd. as an example for pickup trucks exported to the Middle East. The export price is about 7,000 US dollars, which is 30% lower than that of Toyota, Isuzu and Chevrolet trucks of the same grade. At the same time, the company borrowed from the experimental results of advanced countries such as Japan in high-temperature and dry areas, and designed and improved the relevant components to form six models suitable for hot climate (ground temperature 60-80 degrees Celsius), applying the design concept of the car to Pickup trucks, export products of stable quality, comfortable rides, occupy the Middle East market with excellent price/performance ratio.
While taking the low-cost, high-quality route to expand the international market, it is crucial to select the appropriate export market, and the weaker Middle East automobile industry is the main target market for China’s auto exports. On the one hand, the Middle East has a lot of demand for cars, and a large number of small trucks and economic cars produced in China are affordable products that exactly meet the demand for such cars in the Middle East. On the other hand, China's autos are of stable quality, abundant power, and fuel economy, which have established a good reputation in the Middle East market.
From the perspective of auto exports, it is also the Middle East countries as the main export market. According to statistics, from April to April this year, Tianjin Port exported 4975 vehicles to Syria, which was a 1.4-fold increase over the same period of last year, accounting for 44% of the total export volume of Tianjin port autos; and 1181 exports to Algeria, an increase of 6.4 times, accounting for the port 10% of total vehicle exports; 700 exports to Saudi Arabia, while the number of exports during the same period last year was zero.
Trucks are the comparative advantage products of China's auto exports and have strong competitiveness in the Middle East market. In the first four months of this year, the Tianjin Port’s automobile exports mainly consisted of trucks, of which 6171 were petrol trucks with an export volume of less than 5 tons, an increase of 72% year-on-year, accounting for 54% of the Tianjin Port’s total export volume; and 1,321 diesel trucks exporting less than 5 tons. An increase of 90%, accounting for 12%.
Therefore, if domestic autos want to occupy a place in overseas markets, they must first identify their own superior products and target markets, and avoid blind exports. Judging from the current development status and export experience of domestic autos, China's trucks have a comparatively strong competitive advantage in the international market compared to the Middle East market, which is the main target market for auto exports.