Chinese OEM Overseas Expansion Activities: BYD, Geely, Great Wall, NIO, Xpeng
BYD developing global sales network, GWM entering Brazil, and emerging OEMs focusing on Europe
2023/04/05
- Summary
- BYD: Aggressively expanding overseas business, accelerating construction of sales networks, and investing in construction of manufacturing sites
- Geely: Geely brands up 72.4% overseas; Lynk & Co brand begins subscriptions in Europe
- Great Wall Motor: Acquires Daimler's plant in Brazil, accelerating expansion into Southeast Asia centering on Thailand
- NIO: Announces strategy for the European market, focus on building charging infrastructure
- Xpeng: Establishes European headquarters in the Netherlands and builds a sales network
Summary
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According to a report by the China Association of Automobile Manufacturers (CAAM), Chinese automaker exports in 2022 grew 54.4% year-over-year (y/y) to 3,111,000 units. Of this total, passenger car exports grew 56.7% y/y to 2,529,000 units, while commercial vehicle exports were 582,000 units, reflecting an increase of 44.9% over the previous year. Exports of NEVs (New Energy Vehicles: battery electric vehicles (BEV), plug-in hybrids (PHV), and fuel cell vehicles (FCV)) increased 2.2 times compared to the previous year, to 679,000 units. The top passenger car exporter is the SAIC Group with 824,000 units exported in 2022, up 48.5% y/y; the Chery Group comes in second with 450,000 units, up 69.0% y/y; and Tesla Shanghai comes in third with 271,000 units, up 65.9% from the previous year.
According to Chinese government data, the average price of a vehicle exported from China will reach USD 19,000 from 2022, and among EVs (electric vehicles) only, the average price is USD 26,000 per unit. The main destinations are Europe and the Americas, including Belgium, the UK, and Mexico. Chinese automakers are trying various promotions, such as switching to local production instead of exporting, and adopting a "subscription" system instead of conventional over-the-counter sales at dealers.
BYD began exporting the Tang EV to Norway in 2021, using it as a stepping stone to entering the European market. The company has already deployed several models in Norway, Denmark, Sweden, the Netherlands, Belgium, Germany, and other countries. In Southeast Asia, the company built a finished vehicle plant and a battery plant in Thailand to produce EV models. The company plans to roll out models produced at the same plant to the surrounding Southeast Asian region. In addition, the company is accelerating the establishment of sales networks in Japan, India, Malaysia, and other countries.
The Geely Automobile Group will promote globalization under its "Intelligent Geely 2025" strategy announced in June 2021. The company aims to sell 600,000 units overseas by 2025. Geely will enter the NEV market in Europe and the Asia-Pacific region by establishing an overseas sales network of over 600 dealers, with an emphasis on Belt and Road initiative countries including Eastern Europe, the Middle East, Southeast Asia, Africa, and South America.
Great Wall Motor (GWM) has been expanding its overseas operations in recent years and is aggressively building production sites. In addition to the Tula Plant in Russia, the company has already acquired GM's Rayong Plant in Thailand in 2020. The plant is positioned as Great Wall Motor's core EV production and export base. The company currently operates in countries including Thailand, Laos, Brunei, and Malaysia, and plans to expand its operations in Vietnam, the Philippines, Singapore, and other Southeast Asian countries. In the Americas, Great Wall Motor acquired Daimler's plant in Brazil in January 2022 and announced its strategy for the Brazilian market. In the future, the company plans to expand its market throughout South America through its plant in Brazil.
This report summarizes the recent activities in the global market of the major private OEMs BYD, Geely Automobile, and Great Wall Motor, as well as emerging EV makers NIO and Xpeng.
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