In 2022, China’s auto exports will reach 3.32 million, surpassing Germany to become the world’s second largest auto exporter. According to data from the General Administration of Customs compiled by the China Association of Automobile Manufacturers, in the first quarter of this year, China exported about 1.07 million vehicles, a year-on-year increase of 58.1%, surpassing Japan’s car exports during the same period, and becoming the world’s largest car exporter.
Last year, China’s electric vehicle exports reached 679,000 units, a year-on-year increase of 1.2 times, and the foreign trade of charging piles continued to boom. It is understood that the current new energy vehicle charging pile is the foreign trade product with the highest conversion rate on my country’s cross-border e-commerce platform. In 2022, the demand for overseas charging piles will increase by 245%; in March this year alone, the demand for overseas charging pile purchases has soared by 218%.
“Since July 2022, the overseas export of charging piles has gradually exploded. This is related to the background of the introduction of multiple policies from Europe and the United States to catch up with the development of China’s new energy vehicle industry.” Su Xin, chairman and CEO of Energy Times, said in an interview with reporters.
Tong Zongqi, secretary-general of the Charging and Swap Branch of the China Association of Automobile Manufacturers and deputy secretary-general of the China Electric Vehicle Charging Infrastructure Promotion Alliance, told reporters that there are currently two ways for charging pile companies to “go global”. One is to use foreign dealer networks or related resources to export by themselves;
Globally, the construction of charging infrastructure has become the starting point for many countries and regions to vigorously promote the implementation of new energy vehicle strategies. The charging infrastructure policies issued by Europe and the United States are clear and positive, with the purpose of “returning to the first place” in the competition of the new energy vehicle industry. In Su Xin’s view, in the next 3 to 5 years, the main part of the global new energy vehicle charging infrastructure is expected to be completed. During this period of time, the market will be surging rapidly, and then stabilize and be on a reasonable scale of development.
It is understood that on the Amazon platform, there are many Chinese companies that have enjoyed the online bonus of “going global”, and Chengdu Coens Technology Co., Ltd. (hereinafter referred to as “Coens”) is one of them. Since starting business on the Amazon platform in 2017, Cohens has adopted its own brand “going overseas”, becoming the first charging pile company in China and the top four in the world to meet the three European electrical standards. In the eyes of industry insiders, this example is enough to show that Chinese companies can rely on their own strength to build global brands in overseas markets through online channels.
The degree of “involution” in the domestic charging pile market is obvious to all in the industry. In view of this, exploring overseas markets is not only a strategic need for Nuggets’ global “blue ocean” market, but also a way to create another “bloody road” from domestic market competition. Sun Yuqi, director of Shenzhen ABB Company, has been working in the field of charging piles for 8 years. He has witnessed different types of companies “out of the circle” in the competition in the domestic market, until they expand their “battlefield” overseas.
What are the advantages of domestic charging pile enterprises “going out”?
In the view of Zhang Sainan, director of key accounts of Amazon’s global store opening, the competitive advantage of China’s new energy vehicle industry in the global market mainly comes from the “dividend” of population and talents. “A high-level supply chain and industrial clusters can support Chinese companies to produce leading products in an efficient manner. In the field of charging piles, we are far ahead of the industry in terms of technology. With technical advantages, coupled with leading application foundations and a large team of engineers, we can complete the landing of physical products and provide services for them.” He said.
In addition to technology and supply chain, cost advantages are also worth mentioning. “Sometimes, European colleagues chat with us and ask about the price of the national standard DC charging pile. We reply half-jokingly, as long as the euro symbol is replaced by RMB, the answer is. Everyone can see how big the price difference is.” Sun Yuqi told reporters that the market price of AC charging piles in the United States is 700-2,000 US dollars, and in China it is 2,000-3,000 yuan. “The domestic market is very ‘volume’ and it is difficult to make money. Everyone can only go to foreign markets to earn high profits.” An industry source who did not want to be named revealed to reporters that avoiding fierce internal competition and going overseas is a way out for the development of domestic charging pile companies.
However, the challenges cannot be underestimated. In view of the challenges that charging pile companies will encounter when they “go to sea”, Tong Zongqi believes that the first and most important thing is geopolitical risks, and companies must focus on this issue.
From a long-term perspective, it is a difficult but correct choice for charging pile companies to enter the global market. However, at this stage, many companies have to face the requirements of policies and regulations in Europe, America and other countries and regions. For example, in February this year, the U.S. government proposed that all charging piles subsidized by the country’s “Infrastructure Act” must be manufactured locally, and the final assembly of any iron or steel charger shell or housing, as well as all manufacturing processes, must also be carried out in the United States, and this requirement takes effect immediately. It is reported that starting from July 2024, at least 55% of the cost of charging pile components will have to come from the United States.
How can we seize the key “window period” of industry development in the next 3 to 5 years? Su Xin gave a suggestion, that is, to have a global perspective from the initial stage. He emphasized: “Overseas markets can provide high-quality comprehensive gross profit. Chinese charging pile companies have manufacturing capabilities and the ability to tap the global market. No matter what time it is, we must open up the pattern and look at the world.”
Post time: Jul-24-2023