New energy vehicles took the lead in the surge of Chinese auto exports, amid moves by car makers to expand in overseas markets
China’s auto exports reached a record 2.02 million in 2021, more than doubling from a year earlier, data from the China Association of Automobile Manufacturers (CAAM) showed on January 12.
This spike is driven primarily by an explosive growth of overseas orders for homegrown new energy vehicles, whose exports leaped to 310,000 units, up 300% year on year, according to CAAM.
“China's annual car exports exceeded 2 million units for the first time in history, which is a major breakthrough considering that the number had hovered around 1 million for years,” said Fu Bingfeng, executive vice president and secretary general of the CAAM.
Europe has become one of the biggest markets for Chinese auto makers, and sales mostly came from developed countries such as Belgium, the United Kingdom, Germany, France and Norway.
Tesla (TSLA: Nasdaq) and SAIC (600104) recorded the highest percentage of growth among all domestic car makers. They exported a combined 860,000 cars, making up 42.79% of the total.
Tesla issued its financial statements for 2021 on January 27, indicating that its Shanghai Gigafactory had reached an annual capacity of 450,000 units. In December alone, it churned out 70,847 cars.
The factory has been accorded ever higher importance in Tesla's global expansion. Some 484,100 cars rolled off its production lines in 2021, accounting for 51.7% of the EV maker's global deliveries.
As Tesla's most important production base outside of the US, the Shanghai plant shipped more than 160,000 cars to overseas customers in over 10 European and Asian markets last year. Its best-selling Model 3 sedan represented the bulk of overseas delivery, surpassing 130,000 units in 2021.
Meanwhile, SAIC sold 697,000 cars abroad last year, up 78.93% over the previous year and leading other domestic manufacturers. A record holder in overseas sales, SAIC's passenger car exports totaled 290,000 units and reaped impressive sales results in mature markets like Australia, New Zealand and Europe.
Its EV model MG EZS made the top-10 list of EVs sold in Sweden and Great Britain from January to November 2021. Another model, MG eHS, ranked among the top five in the Danish market for plug-in hybrid electric vehicles.
Of the top 10 Chinese auto producers that shipped their products abroad in 2021, four grew at a year-on-year rate of over 100%, said CAAM.
Passenger cars expanded 1.1 times, driven mainly by sport utility vehicle. This suggests that Chinese-made SUVs have a competitive edge over other car segments in overseas markets. Commercial vehicles also shot up 70.7% from the last year.
Direct investment plays a vital role in the quest of China’s auto brands to go global. Car makers such as SAIC, Great Wall Motor, and Geely Auto Group have set up factories abroad, laying the foundation for future growth.
The CAAM also predicted a 20% increase for China’s auto exports in 2022. According to statistics, Shanghai’s port handled the export of over 20,000 vehicles in January this year, registering a year-on-year growth of 50%.
"As the world economy recovers and Chinese auto brands upgrade and evolve, coupled with the push for NEVs in advanced Western markets, Chinese car makers' overseas businesses will continue to expand," said Fu of the CAAM.