The "Going Global" Territory of China's Automobile Industry Continuously Expands the "Popular" Middle East Market of Large Buses

The territory of "going global" of China's automobile industry is continuously expanding. New ways such as technology, service and brand are increasingly becoming the main path for Chinese auto enterprises to "go global". Not only that, China's automobile industry has also achieved breakthroughs and led the way in a number of professional subdivisions, such as new energy vehicles, which has enabled Chinese automobile enterprises to continue to expand into the value chain of the automobile industry and become a solid force to promote the transformation and upgrading of the global automobile industry.

Geely marries Renault to "change ship and go to sea"

near On October, Geely Group announced that it had signed a share subscription agreement with Renault Korea Automobile, the Korean subsidiary of Renault Group in France, and Geely Automobile would subscribe 45.375 million shares of Renault Korea Automobile with 1.376 billion yuan.

Unlike previous domestic automobile enterprises that bought technology or exported products through overseas acquisitions, this time Chinese brand automobile enterprises realized technology going overseas. This is an improvement of Chinese brand automobile enterprises after their products go to sea, and this "ship changing to sea" will also bring new opportunities and impetus to the development of China's automobile industry.

New model of Chinese automobile enterprises going to sea

Nowadays, internationalization has become an important development direction for Chinese automobile enterprises. As the largest private auto group in China, Geely Auto also started its own journey to the sea early.

As early as March 2010, Geely Group acquired all the shares of Volvo Cars in Sweden under Ford for US $1.8 billion, including three processing plants, more than 10000 patents, a complete R&D system, parts supply chain, etc. In May 2017, Geely Group signed a contract to acquire 49.9% of the equity of Proton, a Malaysian vehicle enterprise, and 51% of the equity of its super sports car brand, Lucite, opening the way to the Southeast Asian market. In February 2018, Geely Group once again acquired 9.69% of the inherent voting shares of Daimler AG for 9 billion dollars.

Through these acquisitions, Geely Group has realized technology introduction and product output. But this time, with Renault South Korea Automobile, Geely Group will not only offer money, but also technology.

It is understood that the division of labor between the two parties has been clarified, and Geely Group will provide flat While Renault will provide brand, design and market. The models of the two parties will be produced by Renault Samsung's factory in Busan, South Korea, and are expected to be mass produced in 2024. The new products will adopt the world-class CMA modular architecture developed by Geely Group in its research and development center in Sweden and Geely Group's advanced hybrid technology, and will be sold using Renault Korea's existing market network.

In fact, in August 2021, Geely Group and Renault jointly announced that they would focus on sharing resources and technologies in the hybrid vehicle market and focus on the China South Korea market. In January 2022, Geely Group and Renault Group signed a cooperation framework agreement and decided to jointly expand the Korean market. To this end, the two sides plan to set up a joint venture to develop, produce and sell Renault brand fuel vehicles and intelligent hybrid vehicles in South Korea based on Geely Group's CMA modular architecture and hybrid technology. It is expected that they will be mass produced in 2024 and exported to markets outside South Korea.

In this regard, Cui Dongshu, Secretary General of the Passenger Transport Association, said that Geely Group's participation in Renault was a new attempt to explore the South Korean, Asia Pacific and even global markets, and the cooperation mode of "technology+capital" could better reflect Geely Group's confidence and determination to explore overseas markets.

Why Renault

Renault, a French car company established for more than 100 years near The development is not satisfactory. Whether in the Korean market or in the Chinese market, Renault's sales can be described as bleak. At the same time, the overall scale of the Korean car market is also relatively small. Last year, the sales volume of Korean cars was only 1.73 million, a year-on-year decrease of 8.5%.

Why does Geely want to purchase such a car company that is not good enough for both the company and the market?

In this regard, Geely Group said that the company has been seeking business opportunities to promote the internationalization of products. Through the subscription agreement, it can cooperate with Renault to use its existing automotive technology and research and development water flat To occupy a place in the Korean market, achieve the strategic goal of product internationalization, further strengthen the R&D capability of automobile architecture and model technology, and seek the development of industrial value chain.

Some insiders said that South Korea is also the world's developed automobile industry country If it can successfully establish itself in the Korean market, it can endorse Geely Group's move towards a broader international market. At the same time, Renault Korea Automobile urgently needs blood transfusion from external forces to revitalize its business. Renault Korea Automobile, which is seeking transformation, is still at the exploratory stage in terms of new product innovation and electrification transformation development, and has joined hands with Geely Group to introduce funds, technologies and share R&D flat Taiwan will help Renault save money in new car research and development, and accelerate the landing of localized models that better meet the needs of the Asian market.

Some people think that because of the low starting point, Renault Korea Automotive will pay more attention to the new models enabled by Geely Group's technology and spare no effort to invest resources in promotion. Therefore, for Geely Group, although this cooperation faces challenges, it is also worth trying.

According to the analysis organization epidemic situation Geely Group and Renault both have practical problems that need to be solved urgently due to many challenges such as supply chain and so on. The cooperation between the two parties is to meet each other's needs. Renault can improve its performance in the Asian market, and Geely Group can also obtain more international market channels. Moreover, Renault Korea Automotive has ready-made sales channels and after-sales service system, which can help the new models launched by both parties to land faster and basically eliminate worries. At the same time, Geely Group can also base itself on the Korean market and develop a larger international market.

New opportunities on the "new ship"

near In recent years, with the development of China's automobile industry, the export of automobile products has become more and more. In 2021, China will export 588000 new energy vehicles, showing a trend of continuous strength. Among them, the export of Chinese cars to Europe has exceeded the growth rate of 200%, and the export growth to North America has also exceeded 100%.

At the same time as the products go to sea, the technology and services of Chinese automobile enterprises are also developing rapidly, becoming an important part of enterprise operation.

Cui Dongshu said that the revenue from technology licensing has become an important additional revenue for Geely. In 2021, Geely's technical services, licensing profits and other revenues will continue to grow, which will become an important source of profits for Geely Group, bringing positive profit growth to the company.

Geely Group's financial report last year also showed that Geely Group's other revenues in technical services and licensing profits continued to grow, with a year-on-year growth of more than 240%.

Industry insiders believe that Geely's provision of technology to Renault represents a new starting point for the scientific and technological output of Chinese automobile enterprises.

At present, China has become the largest new energy vehicle market in the world. Self owned brand automobile enterprises have seized the opportunity of electrification, intelligence and networking, and their share in the domestic market is rising. At the same time, the restructuring of the global automotive industry makes it necessary for all enterprises to carry out extensive and flexible division of labor and cooperation with various partners, draw on each other's needs, learn from each other's strengths, and effectively share the pressure of transformation.

Taking advantage of the intelligence and networking of the automobile industry, the "going global" territory of Chinese automobile brands continues to expand. Not only Geely Group, including Chery, SAIC, Great Wall, as well as BYD, Weilai, etc., has also actively deployed overseas markets in the fields of products, research and development, technology, services, and accelerated the pace of internationalization. It can be predicted that technology, service and brand will increasingly become the new main way for Chinese automobile enterprises to "go global". (Reporter Li Zhiyong)

BYD Appears at the Largest Clean Transportation Expo in North America

From May 9 to 12, the 2022 Advanced Clean Transportation Expo was held in Long Beach, California, USA. The clean energy vehicles of BYD, a Chinese automobile enterprise, appeared in the exhibition, attracting many visitors.

The 11 year old Advanced Clean Transport Expo is the largest event for advanced transport technology and clean energy vehicles in North America. This year's exhibition attracts the world near 200 manufacturers and more than 8000 industry insiders participated, setting a new record over the years. More than 80 new energy vehicles from major manufacturers participated in the exhibition, demonstrating the latest development trend of advanced transportation technology and clean energy vehicles.

BYD, which has participated in the exhibition for many years in a row, demonstrated products such as pure electric transport trucks, pure electric tractors and pure electric school buses. Visitors can experience the advantages of BYD's pure electric van in the test drive area nature Yes. Industry insiders constantly consult BYD staff on products on site nature Able to negotiate cooperation matters.

Duan Yuefeng, senior vice president of operations of BYD North America Branch, said in an interview that BYD has become one of the leaders of new energy vehicles in North America. In the new stage of rapid development of new energy industry, BYD sees more development opportunities through this industry event and hopes to take advantage of this flat Taiwan continues to expand its market influence. BYD will maintain its leading position in the field of new energy vehicles by continuously strengthening technological innovation. (Reporter Gao Shan Tan Jingjing reports from Los Angeles)

Chinese buses are "popular" in the Middle East market

Li Han was pleased with the steady development of the company as he watched buses drive from the factory area to the export port.

"In the first quarter of this year epidemic situation Under the pressure of impact and export obstruction, the company's sales increased by 96% year on year to US $6.7502 million, of which the Middle East market contributed more than 40%. " Li Han, deputy general manager of Jiangxi Kaima Bailujia Bus Co., Ltd., said.

The rise of sales of this company against the market is a microcosm of the "popular" Middle East market of Chinese buses. According to the data of the General Administration of Customs of China, in the first quarter of this year, China exported more than 100 million complete buses to the Middle East market, accounting for about a quarter of the total bus exports in the same period.

Middle East country There is a great demand for road transportation, and buses are the main means of transportation. Li Han told the reporter that Bailujia was facing fierce competition from many well-known car companies when it entered the Middle East market in 2018, so it chose to focus on nature Customized middle and high-end routes and differentiated competition.

For example, in order to adapt to the high temperature and dry weather in the Middle East, Belujia bus has strengthened its refrigeration system and adopted special tires for high temperature resistant desert areas. In terms of internal design, in addition to the "big things" such as the toilet and the rest room for shift changing drivers to meet the needs of long-distance travel, it is also equipped with refrigerators, water dispensers, charging sockets, small meal boards and other considerate small things to maximize the ride comfort. At the same time, the design of "open front wall" makes the maintenance and replacement of lights, wiper motors and wiper kettles more convenient, greatly Save vehicle maintenance time and labor costs.

"Over the years, we have found that this line is correct. epidemic situation It has a great impact on the traditional transportation industry, and we insist on doing things that others can't do. Despite repeated production stagnation and resumption of production, customers still recognize our brand. " Li Han said.

In addition, Belujia has also specially set up local teams for market docking and on-site services to provide customers with comprehensive services ranging from technical support to vehicle maintenance and repair. A Belujia dealer in the Middle East reported that the bus designer nature Comprehensive configuration, and nature High price ratio, "more and more Chinese auto brands are being recognized by the market".

According to the analysis of insiders, Chinese buses have the advantages of stable supply, strong adaptability and innovation, high quality and low price epidemic situation However, Chinese bus brands make full use of their domestic advantages to coordinate market resources and ensure that orders are delivered on time.

The government departments are also actively connecting with enterprises to provide support for enterprises in resuming work and production, purchasing parts, coordinating delivery ports, etc. On April 30, 20 luxury buses of Belujia were exported to the Middle East market. The day before, the company was still worried about missing the license plate. During the special period, the traffic management department of Nanchang Economic Development Zone where the company is located opened a green channel to urgently apply for relevant temporary licenses to ensure the smooth exit of buses on schedule.

In other regions, Chinese car companies have also performed well in the Middle East market. Yutong Bus and Qatar in Zhengzhou, Henan country The transport company signed the contract of vehicle supply and service for the 2022 Qatar World Cup, which will help Qatar become the first country in the Middle East to realize large-scale electrification of passenger cars country ; Hager Bus, another car company from Jiangsu near Over the years, it has steadily increased its market share in Qatar near 5000 sets...... At present, more than 20 Chinese automobile companies have entered the Middle East market with various products.

"Being recognized by the market is only the first step. Next, we will steadily expand the Middle East market with higher quality and better service," said Li Han. (Reporter Huo Dantong and Huang Haoran reported from Nanchang)

key word: China's automobile industry The map of going out China Bus Middle East market