From Selling Cars to Exporting the Industry Chain, Wuling Globalization Enters the Second Phase

On September 17, SAIC-GM-Wuling officially released the Global 5 Global Strategy at the China-ASEAN Expo, while signing a cooperation agreement with Malaysia's Choon Seng Group to launch local industrial localization layout.

If only looking at the surface, this is a routine global strategy release. But judging from the content proposed by Wuling, what it aims to solve is no longer selling more cars overseas, but how to transform the R&D, manufacturing, supply chain, and channel capabilities formed domestically in the past into a business system that can be replicated across different markets.

This is actually an unavoidable question for China's automotive overseas expansion up to this point.

Beyond Export Scale, Localization is Harder

Wuling has a long-established overseas business foundation. According to official disclosures, as of now, its global cumulative production and sales have exceeded 32 million units, new energy vehicle sales exceeded 4 million units, and overseas cumulative export sales exceeded 1.6 million units/sets, maintaining overseas export growth for 10 consecutive years.

At this scale, simply emphasizing export numbers no longer holds as much significance as in the early days.

In the past round of overseas expansion, China's automobiles relied largely on complete supply chains, cost control, and new energy technology advantages. But as the market progresses, localization issues become more prominent. Regulations, tariffs, after-sales, supply chains, financial systems, and even local employment and industrial policies will directly determine whether a car manufacturer can stay for the long term.

One point worth noting in Global 5 is that Wuling divided globalization into five cooperation modes: trade, distribution, production and sales, entire industry chain, and technology licensing.

This shows it is not preparing to copy one fixed model globally.

Some markets are suitable for direct export, some require local assembly, and some need further entry into the supply chain or even technical cooperation. For many Chinese car companies, overseas expansion in the past was more like "products go out first, then complement the system"; now it is increasingly necessary to design entry methods in advance according to different markets.

Although this step may not be as intuitive as sales growth, it determines how far globalization can go.

What Wuling Truly Starts to Export is the "System" Accumulated Over Past Decades

Another change in Global 5 is that it does not only talk about products.

Wuling proposed "Smart Manufacturing Chain, Supply Chain, Sales Chain, Talent Chain, Finance Chain" five-chain synergy, while putting the intelligent manufacturing system, technology brand, and full-category products into the same global framework.

The logic behind this is clear. China's automotive industry's current biggest competitive advantage is no longer just that a certain car is cheap or a certain configuration is higher, but the complete industrial system behind it.

Fast R&D speed, fast supply chain response, high manufacturing efficiency, and mature new energy technology, these capabilities have been repeatedly verified in long-term domestic competition. But to truly become a global competitive edge, this capability needs to be moved overseas.

This cooperation with Malaysia's Choon Seng Group is a very specific landing point. Both sides plan to expand cooperation around battery local CKD and core component supply chains. Wuling hopes to gradually build a local independent supply chain system.

This is already significantly different from simply exporting complete vehicles in the past.

When supply chains, manufacturing, and talent systems truly enter the local area, the relationship between enterprises and markets will also change. Cars will no longer be goods shipped from China but become part of the local industrial system.

ASEAN Will Become an Important Testbed for Chinese Automakers' Globalization

Wuling placing the Global 5 at the ASEAN Expo for release and positioning ASEAN as the bastion of globalization also has strong practical significance.

There are huge differences in development levels, industrial foundations, and policy environments among ASEAN countries. There are both mature automotive industrial markets and markets still in the rapid automotive popularization stage. For Chinese car companies, this region is actually a very typical globalization testbed.

Here, relying solely on low prices is difficult to build long-term advantages; local supply chains, channel networks, and service capabilities will become increasingly important.

Wuling proposed to deepen layout in 150 countries over the next 3 years, expand to 500 strategic partners, and set a target of 50% average annual growth in overseas sales. Whether these goals can be finally accomplished depends on the specific landing speed of different markets, but the strategic direction is already relatively clear: Wuling is not satisfied with being a Chinese brand with a larger export scale but hopes to enter the local industry chain.

This is also a watershed that China's automotive globalization is currently appearing.

The first phase compares who can sell cars out. The second phase starts to compare who can produce, serve, and operate continuously locally. Further on, it compares who can truly build brand and industrial influence.

For Wuling, what Global 5 truly needs to verify is exactly this point.

1.6 million overseas sales have already proven that products can go out. What is harder next is whether the supply chain, manufacturing system, talent, and brand can stay together.

If this step can be run through, Wuling's globalization will be considered truly moved from "export business" to a long-term business.