China’s NEVs expand global influence

Chinese auto brands in the new energy vehicle sector are actively expanding their influence by leveraging the platform of the ongoing 2024 Beijing International Automotive Exhibition (Auto China 2024).

At the auto show, which kicked off on April 25 and will last until May 4, the booths of numerous Chinese independent brands attracted a steady stream of international visitors. Among them are partners of Chinese auto brands, along with dealers and purchasers.

Since the beginning of this year, the Chinese new energy vehicle brands have accelerated their export. The BAIC Group said that their commercial vehicles have maintained the top position in overseas exports for over a decade. This year, their primary focus will be on further increasing the export of new energy products.

"China has been a front-runner in developing new energy vehicles in recent years. As China is developing new quality productive forces, new energy is an important track and the only way for China's automobiles to become bigger and stronger," said Jiang Zili, deputy secretary of the Party Committee of BAIC Group.

Meanwhile, Chinese auto brands are building factories abroad. On January 30, BYD signed a land pre-purchase agreement with the Szeged Municipal Government in Hungary. Similarly, on April 19, China's Chery Auto announced its plans to aestablish a comprehensive utomobile manufacturing base in Zona Franca (Barcelona), Spain. Additionally, GAC Aion's factory in Thailand is set to commence production in July of this year.

"We strive to open the factory in Indonesia at the end of this year. Meanwhile, we are making arrangements in Europe, Africa and the Middle East," said Gu Huinan, general manager of GAC Aion.

In addition to investing in overseas vehicle factories, China's new energy vehicles are continuously improving the industrial ecological chain.

Chinese auto company NIO has built 42 battery swap stations in Europe, initially forming a complete battery swap network on the continent.

"We have established a battery swap station factory in Hungary. We believe that this rechargeable, swappable, and upgradeable technology can be shown to more users around the world as well as to the global auto industry," said Li Bin, founder of NIO.

Lin Changbo, general manager of Dongfeng Liuzhou Motor Co., Ltd, said that China's auto exports are poised for rapid growth this year.

"This year is a big year for the export of China's vehicles, with the entire industry projected to experience a growth of nearly 40 percent," said Lin.

China’s NEVs expand global influence

The popularity of China's new energy products in the global market stems from their trailblazing innovation and market adaptation in catering to the consumer needs, rather than driven by government subsidies, which embodies the market principle of survival of the fittest, said He Yadong, spokesperson for the Ministry of Commerce, on Thursday.

Chinese companies have been assiduous in research and development in the new energy sector more than two decades. Through fierce market competition, they have formed unique advantages, He told a regular press conference, nothing that China's new energy market is fully competitive, which results in the "survival of the fittest" and the continuous emergence of high-quality enterprises and products.

With regard to industrial subsidy policies, the spokesperson said such practices originated from the West, and are widely adopted by countries all over the world.

China's industrial subsidy policies abide by the WTO rules and adhere to the principles of fairness, transparency and non-discrimination, he continued, adding that all enterprises operating in China can enjoy the same benefits.

"By contrast, the United States and Europe have significantly hiked subsidies in recent years, applying massive exclusive and discriminatory practices, and set up numerous obstacles to block Chinese products from entering relevant markets. These are typical protectionist practices in breach of the basic principles of the WTO," the spokesperson said.

He also said that China's new energy products are a contribution, rather than a threat to the world," adding that the country's high-quality new energy products have enriched the global supply, promoted the green and low-carbon process, and helped achieve the goals of the Paris Agreement.

It is estimated that each new energy vehicle cuts carbon emissions by around 1.66 tonnes per year. China exported 1.2 million new energy vehicles in 2023, which will help reduce carbon emissions by about two million tonnes annually.

The development of China's new energy industry has promoted the widespread application and industrialization of green, digital, artificial intelligence and other technologies, and spawned new technologies, adding new momentum of growth to the global economy.

Popularity of China's new energy products stems from trailblazing innovation, market adaptation: spokesperson