China's Chongqing sees NEV exports surge as automakers expand globally

Logistics staff load China Railway Express trains with Chongqing-made automobiles at Chongqing Yuzui Station on March 8, 2024. (Photo/cqnews)

China emerged as the global leader in automobile exports in 2023, shipping 4.91 million vehicles worldwide, according to China's General Administration of Customs. The nation's export momentum continued into 2024, with 4.7 million vehicles exported in the first nine months, surpassing the previous year by nearly 1 million units.

The surge in China's auto exports is exemplified by Chongqing Municipality, a major automotive hub in southwestern China.

The city exported 368,000 vehicles valued at 33.17 billion yuan ($4.58 billion) in 2023. During the first three quarters of 2024, Chongqing's auto exports grew 34 percent to 31.7 billion yuan, with new energy vehicle (NEV) exports soaring 131.9 percent.

Chongqing performed remarkably in NEV exports, with local brands Changan and SERES leading the way. In 2023, Changan's NEV sales surged 69.2 percent compared to the previous year. The first phase of Changan's overseas production base in Thailand is set to produce 100,000 vehicles annually.

Meanwhile, SERES has established a strong presence in the European market, with orders for its new SERES 5 model exceeding 20,000 units.

"A growing number of countries are adopting green initiatives and promoting NEVs, creating opportunities for Chinese automakers who have developed technological expertise and cost advantages," said Wan Zhijun, vice president of SERES' overseas business department.

Chongqing's well-established automotive supply chain provides companies with opportunities to reduce costs and improve efficiency, Wan said. He added that ongoing improvements in the industrial chain and product quality have become key factors driving the global expansion of Chongqing-made vehicles.

The steady flow of international orders demonstrates the growing recognition of Chinese automakers and reflects their sustained investment in research and development (R&D).

Changan allocates at least 5 percent of its annual sales revenue to R&D. SERES increased its R&D investment by 320.61 percent to 2.8 billion yuan in the first half of 2024. Xpeng, a smart NEV manufacturer, has invested more than 19 billion yuan in R&D and maintains over 40 percent of its workforce in R&D roles.

SERES has expanded its global footprint over the years, now selling vehicles in more than 70 countries through over 100 international trading partners.

"We tailor different strategies for different markets," Wan explained. For example, SUVs and mini commercial vehicles are popular in North Africa and the Americas, while consumers in the Middle East and Europe prefer stylish and technologically advanced smart-connected NEVs, said Wan.

SERES established its European headquarters in Amsterdam in March 2023, where it now employs a team of about 30 people.

"The team provides after-sales service support, spare parts warehousing and technical training for European customers," Wan said.

He explained that while some automakers previously lacked comprehensive overseas business plans and adequate after-sales service systems, most companies now focus on deeper market penetration and long-term brand management.

Guoyuan Port in Chongqing's Liangjiang New Area serves as a key national logistics hub that integrates rail, road, and water transportation. The port is a crucial departure point for Chongqing-made vehicle exports.

From Guoyuan Port, the Yangtze River provides connections to ports along the Yangtze River Economic Belt eastward, enabling river-sea transport. Westward, the port links to Central Asia and Europe via China-Europe freight trains, while southward routes connect to ASEAN and South Asia through the New International Land-Sea Trade Corridor.

"We partnered with Chongqing's railway department in December 2022 to implement dedicated vehicle transport trains. This increased automobile export capacity by about 1.5 times and reduced enterprise costs by approximately 15 percent," said Liu Guangyu, deputy director of logistics management at Chongqing Port's customs department.

Chongqing Customs has implemented an expedited clearance system for vehicle exports. "Trains from Chongqing now reach Central Asia via the China-Europe route in three to five days. Meanwhile, using dedicated trains through the New International Land-Sea Trade Corridor from Qinzhou Port in south China's Guangxi Zhuang Autonomous Region, shipments can reach Europe in 18 to 20 days," Liu said.