How significant is internationalization to the upward development of Chinese auto companies? Relying on the high-intensity competition of the new energy industry, Chinese cars have broken away from the state of being young and unable to compete with foreign giants.
However, as the market pattern continues to become very changeable with the addition of new people, for most Chinese car companies pursuing sustainable development, it is very important to find a feasible development path.
We never deny that, like the current situation in China’s automobile industry, “life and death” must be a fast lane to promote the development of technology.
In just a few years, Chinese cars have emerged from the label of backwardness and poor quality, which is so resolute and concrete, which shows that this kind of internal competition day and night has achieved remarkable results.
However, against this background, when we see very clearly that from January to August this year, the average profit margin of China’s automobile industry fell below 5%, only 4.
7%, which is lower than the average profit margin of 6.
2% of downstream industrial enterprises.
I have to say that if Chinese car companies still want to compete with those super-profitable companies such as Volkswagen and Toyota, it will not be enough to focus on the domestic market.
In the past two years, in the face of the subject of “going out to sea”, Chinese cars have not done nothing.
Head car companies such as Great Wall, BYD, Chery and Geely either compete for recognition in specific markets with the characteristics of their products, or expand their sales base by virtue of the first-mover advantage of building factories in the third world countries around the world.
or through acquisitions, cooperation and other means to export their own technology and products to earn foreign exchange, in many cases, these actions are very praiseworthy.
But on the other hand, now that Chinese cars have made such achievements in “going out to sea”, I think that the internationalization process of major car companies should not be limited to making money to subsidize the frenzied domestic competition.
At present, the Paris Auto Show, which has a deep history in Europe, is still being held, no matter what heavy tariff punches the EU has imposed on Chinese cars entering Europe, from this moment on, with Paris as the stage, it is time for Chinese car companies to rush into mature car markets such as Europe and the United States at full speed.
If one day, Chinese cars can gain the reputation of consumers here, it will be regarded as the real rise of the automobile industry.
To become an automobile power, going to sea is the only way.
two years ago, relying on the upsurge of the new energy industry, many Chinese new energy car companies came here to try to gain a firm foothold under the preferential treatment of the policy.
But now it seems that when Aichi and Gaohe, which once sold cars and showed off their muscles in Europe, collapsed before the market was heated, I dare say that these so-called cases of going to sea not only failed to have a positive impact on the image of Chinese cars, but also exposed the impetuous development of the industry by treating Europe as leeks.
With such dregs, what should Chinese car companies do today to calm down the negative voices? Maybe this year’s Paris Motor Show can give some answers.
At the Paris Auto Show, there are no more “bastards” among the Chinese car companies participating in the Paris Auto Show, which is a purification result that we can see on the surface.
If you look at it in depth, Zero running against the Stellantis Group has opened the door of the European car market with the start of the B10, and Xiaopeng has put the pre-sale of the P7 + in Paris, which actually shows his determination.
At the same time, GAC GROUP also officially released the “European Market Plan”: from market expansion, green travel, service network to cultural integration, and actively explore the future establishment of a technology center in Europe, with the concept of long-term doctrine and win-win cooperation, build a three-dimensional local ecology, and strive to build GAC into a reliable partner in the European industry and a reliable brand for European consumers.
Behind all these actions, the bright spot that can be extracted, in addition to the offensive of Chinese cars once again taking advantage of the opportunity to enter the European market, is intended to reflect that the purpose of Chinese car companies going out to sea must no longer be simply to run to make money.
How hard is the European market? Are Chinese enterprises clear on earth? I think it must be of course.
The time goes back to 2006, and in August of that year, 2000 double-ring CEO purchased by Italian merchants were officially shipped from China to Europe.
Three months later, Shenyang brilliance Golden Cup Automobile Co., Ltd. and Germany’s HSO Automobile Europe held a formal signing ceremony of the general agency contract for the export of “Zhonghua” cars to Europe at the Bremen City Hall.
In this regard, some people may think that even independent brands such as Shuanghuan and China, which had been closed for a long time, could enter Europe nearly 20 years ago, so wouldn’t it be easier to open the door to the European market now? But the root of the problem is that these unclassy Chinese cars leave nothing but a bad image in Europe.
To put it bluntly, whether European demand is diversified or not, outsiders always have a long way to go to make a qualitative change in a market with a very strong car industry system.
Indeed, with the rapid development of the automobile industry, there is also a strong capacity of the new energy industry.
The new generation of brands with strong Chinese ancestry, such as Weilai, Lectra and Jixing, have the ability to re-enter Europe and try to change the bad imprint of the past.
But from a rational point of view, if we want to take root in Europe, it is not enough to rely solely on the efforts of Chinese car companies in twos and threes.
The top Chinese car companies need to come up with more developmental plans to deal with it.
A few days ago, the tariff stick of European imports of electric cars to China also fell.
In terms of specific tax rates, an additional tax of 7.
8 per cent was levied on Tesla, countervailing duties of 17 per cent, 18.
8 per cent and 35.
3 per cent on BYD, Geely and SAIC respectively, while 20.
7 per cent was levied on other electric vehicle manufacturers that participated in the survey but were not separately sampled.
No matter how much opposition stands in front of people, it is clear that the vision of Chinese cars to enter the mature car market in Europe and the United States is unreasonably suppressed.
However, after so many years of exploration and industry reshuffle, the cards of Chinese cars are no longer the same.
From making quick money to setting up brands, the purpose of more and more Chinese car companies entering Europe is to have a fundamental change.
Take GAC GROUP, who has just announced his European strategy, for example, behind the move to go against the trend and enter Europe, he does not put wealth in the first place.
There is nothing to be afraid of in a new round of going out to sea.
Of course, given the background of the times, Chinese car companies, with the industrial advantage of new energy vehicles, have no problem saying that they have made a lot of money in Europe in the past two years.
SAIC alone sold more than 300000 vehicles in Europe last year, while MGBrand electric cars have been among the top 10 sales in 15 European countries since March last year, and then became the “top seller of compact pure electric cars” in Europe.
In 2024, according to statistics, the cumulative sales of Chinese cars in Europe reached 512000 in half a year.
That’s why, despite being curbed by European tariffs, most Chinese car companies are now facing severe market challenges.
But the market potential is still there, I believe that no one will choose to easily withdraw from the European market.
Moreover, unlike the rash entry into Europe in the past, the technology reserves accumulated by Chinese car companies in the new energy spring tide are still very competitive in the market.
In other words, Chinese cars will not show timidity in the face of local European carmakers.
With regard to entering this market, as Feng Xingya, general manager of GAC GROUP, said when announcing the company’s European plan, “Today, with the accelerated restructuring of the global automobile industry, we hope to be open and humble.
” through win-win cooperation with the European industry and integration into the local market, it will bring more choices for European consumers to travel.
” Under the premise of the existence of market demand, compared with simply seizing the market, Chinese cars still want to manage Europe’s consumer market in a win-win way.
Next, driven by interests, we can certainly guess that several European countries, led by Italy and France, will hinder the entry of Chinese cars to Europe.
On Oct.
14, Stellantis CEO Carlos Tavares specifically pointed out that the EU tariff on Chinese-made electric cars would accelerate the closure of factories of local European carmakers, as EU tariffs would encourage Chinese automakers to build factories in Europe, thus exacerbating the problem of overcapacity in European factories.
It is believed that anyone with a discerning eye can easily Get: whether Chinese car companies build factories in Europe or not, those European countries that themselves are strongly dependent on the automobile industry can find reasons to curb your development from beginning to end.
However, when the automobile industry develops to today, regarding the electric transformation as the focus of the next stage of development, for Chinese car companies with technical strength, there is nothing more meaningful than to face the challenge.
You see, the latest electric cars recently released by French car companies such as Renault, Peugeot and Citroen have almost no highlights, from hardware to software, except for the extremely strong French design.
Compared with the same competition Xiaopeng P7 +, Ean V and other Chinese electric cars that debut for the first time, there is really no advantage.
Before the latest tariff regulations of the European Union, we did see that Chinese car companies like Chery, which need to earn most of their profits from overseas markets, responded cautiously to the question of Chinese cars going to sea, and after a recent Goodwood Speed Festival trip, they had their own ideas about entering the central European market.
But all in all, as a large number of speculators in Chinese car companies are withdrawn from the market, and experienced car companies such as GAC begin to speak to European car giants with practical actions, I believe that the story about Chinese car companies going abroad will enter a new chapter.
While making money, we must consider how Chinese cars use technology fans, and how to increase the brand premium and so on.
Only in this way will it be possible for Chinese cars to narrow the gap between top-class international car companies.
If you realize this, what if you go against the trend and enter Europe? for Chinese car companies, everything is the best arrangement.
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