What did China's automobile exports break through restrictions on?

Recently, Shanghai Customs announced that the automobile throughput of Shanghai Port will reach 3.63 million vehicles in 2024, a year-on-year increase of 15%, surpassing the Antwerp Bruges Port in Belgium (which is also the main port for Chinese automobiles to land in Europe) and jumping to the world's first place for the first time. This has attracted widespread attention within the industry.

From specific data, last year, Haitong Port exported 1.298 million roll on/roll off vehicles, a year-on-year increase of 26.6%. Among them, 501000 new energy vehicles were exported, a year-on-year increase of 38.5%; The export of automobiles from Nangang Port has exceeded 370000 units, a year-on-year increase of 26%, of which new energy vehicles account for nearly 70%. It can be seen that China's new energy vehicles are becoming a "new force" in exploring overseas markets. The automobile throughput of Shanghai Port includes import and export, domestic trade, and bonded transit businesses, among which automobile exports have an absolute advantage. This reflects the active domestic automobile market and strong Chinese automobile exports in 2024, as well as the strong rise of Chinese electric vehicles.

This year's government work report mentioned that the annual production of new energy vehicles will exceed 13 million units by 2024. From a global perspective, China's production and sales of new energy vehicles have ranked first in the world for 10 consecutive years, while the penetration rate of new energy vehicles in the domestic market is about 47%. Overall, China's automobile production and sales have accumulated 31.282 million and 31.436 million vehicles, with year-on-year growth of 3.7% and 4.5% respectively. Among them, the domestic sales volume was 25.577 million units, a year-on-year increase of 1.6%; The export of automobiles reached 5.859 million units, a year-on-year increase of 19.3%. It can be seen that exports have become the main driving force for the development of China's automobile industry.

In order to further enhance their automobile export capabilities, Chinese automobile manufacturers have established self operated fleets. The previously dormant global automotive roll on/roll off ship market is undergoing a dramatic change. Related institutions predict that China will build 170 to 200 car roll on/roll off ships from 2023 to 2026, equivalent to more than one-fifth of the current global roll on/roll off fleet size. In the current global automobile transport ship orders, the proportion of orders from Chinese shipowners has risen to 21.1%. Analysis suggests that building a self built fleet can ensure the stability of the automobile overseas supply chain, enhance logistics capabilities, and improve the overall cost control ability of enterprises during the automobile overseas process.

At present, Shanghai Port has 15 international automobile roll on/roll off shipping routes, connecting 289 ports in 131 countries and regions. According to the "15th Five Year Plan" goals of Shanghai Port, a total throughput capacity of over 5 million vehicles will be deployed in Waigaoqiao, Lingang, and Haitong Taicang. According to reports, the second phase of the Shenzhen Xiaomo International Logistics Port project started construction in January this year and is expected to be completed and put into operation by 2027. At that time, it will form a million level automobile roll on/roll off scale and create a hub port for automobile roll on/roll off foreign trade in South China. Tianjin Port currently has roll on/roll off routes connecting more than 30 countries and regions including Europe, the Middle East, and South America. In particular, a new direct route to Mexico was opened in January this year, which has opened up a new strategic channel for China's automobile exports.

However, the competition faced by China's new energy vehicles in the international arena has not diminished, and in order to maintain its own advantages, it must be prepared in advance. On March 5th, the European Commission announced an action plan aimed at promoting the robust and sustainable development of the automotive industry and helping it unleash its innovation capabilities. The plan will provide 1.8 billion euros specifically for building a competitive battery raw material supply chain. This action plan is based on the European Commission's "Strategic Dialogue on the Future of the European Automotive Industry" launched in January this year, aiming to enhance the competitiveness of European car manufacturers by promoting cooperation, facilitating targeted financing, and simplifying regulation.

Faced with the continuous introduction of policies by the United States and Europe to support their own automobile companies, as well as restrictions on China's new energy vehicles, China has been continuously enhancing its "technological value" and adopting targeted strategies to break through the restrictions imposed by the United States and Europe.

Firstly, in this year's Two Sessions Government Work Report, it was mentioned to stimulate the innovation vitality of the digital economy and continue to promote the "Artificial Intelligence+" action. One of the main contents is to vigorously develop new generation intelligent terminals such as intelligent connected new energy vehicles, artificial intelligence smartphones and computers, intelligent robots, and intelligent manufacturing equipment, in order to better integrate digital technology with manufacturing and market advantages.

Secondly, new energy vehicles, lithium batteries, and photovoltaic products have become the "new three" representing the development of China's green industry, with obvious industrial advantages and strong international competitiveness, and are new highlights of China's economic growth. Suggest increasing policy support, consolidating the advantages of the "new three types", supporting more enterprises to expand the green industry chain, and promoting the manufacturing industry to move towards "green".

Once again, despite attempts by the US and Europe to establish trade barriers to restrict China's exports of new energy vehicles, Chinese companies have found a vast space in cooperation with partners under the Regional Comprehensive Economic Partnership (RCEP) and more countries in the global South. In 2024, Chinese car companies will embark on a full industry chain output model, instead of the previous model of exporting parts and assembling them locally. Chinese car companies have currently put into operation full process manufacturing factories in 9 countries, with an annual production capacity of 1.2 million vehicles. Some institutions estimate that by 2026, the annual production capacity of Chinese car companies in more than 10 countries will reach 2.7 million vehicles.