Overseas Markets Sustain Half of Sales Volume, Going Global Becomes New Engine for Chinese Auto Makers to Maintain Growth

Fu Rong, Interns Fang Weibo, Cheng Siyu

According to data from the China Passenger Car Association, domestic car sales continued to decline under pressure in July, while overseas markets maintained significant growth, especially the overseas sales of several top automakers have accounted for "half of their total sales". Car going global has leaped from a supplementary channel to the core engine for automakers to digest capacity and maintain growth.

From July data: Chery Holding total sales 276,800 units, exports 202,500 units, overseas share as high as 73%, nearly 3 times the domestic market; BYD total sales 419,200 units, exports 179,800 units, overseas share 42.8%; Geely Auto sales 250,200 units, exports 106,700 units, share 42.6%; SAIC Group sales 338,600 units, exports 141,700 units, share 41.9%. In comparison, sales of various automakers in the domestic market showed different degrees of decline, one rising and one falling, allowing the overseas market to leap from being a "minor player" in the past to become the pillar supporting performance growth for mainstream automakers.

According to data from the China Association of Automobile Manufacturers, domestic car sales in July were 1.541 million units, down 13.1% month-on-month and down 23.6% year-on-year. Data from the China Association of Auto Trade Dealers shows the auto dealer inventory warning index climbed to 61.1% that month, far exceeding the 50% threshold, with over 60% of dealers finding it hard to be optimistic about the market trend in the second half of the year, and industry inventory reduction pressure increased significantly.

In stark contrast, overseas markets continued to perform well during the same period. Mainstream automakers that implemented the going global strategy all saw significant growth in overseas sales. Data from the China Association of Automobile Manufacturers also shows: In July, China's car export volume reached 1.043 million units, surging 81.3% year-on-year, breaking the million-unit mark for two consecutive months. Among them, new energy vehicle exports reached 553,000 units, a surge of 145.5% year-on-year, with their share exceeding 50% for two consecutive months, becoming the absolute main force of exports. From January to July, China's cumulative car exports reached 6.14 million units, a 66.8% year-on-year increase, among which new energy vehicle exports increased 1.2 times year-on-year.

Behind this structural change lies the deep layout of global strategies by top automakers. The going global model of Chinese automakers is gradually shifting from "complete vehicle exports" to combining with "industrial rooting". BYD's factories in Brazil and Thailand have started production successively; Chery is advancing multi-base projects in Spain, Vietnam, etc.; Changan's factory in Brazil has also been completed and put into production. Top automakers are rooting deeply in global core markets through a "three-in-one" approach of building factories, laying out channels, and integrating supply chains. Europe, Southeast Asia, and South America have become the three major core pivots of Chinese automaker globalization. Looking forward, tariff barriers and local operational capabilities will become the watershed of competition. From satisfying domestic demand to driving the global market, a profound transformation from "Made in China" to "Chinese Globalization" is taking place.