Chongqing's auto exports surge in Q1

Chongqing, an automobile manufacturing hub in China, has registered remarkable growth in the export of its homegrown auto brands during the first quarter of this year. Its export value soared to 8.92 billion yuan ($1.23 billion), up 24.1 percent year-on-year. Notably, electric vehicles led this surge, with a 219.4 percent year-on-year increase in export value, totaling 14,000 units.

Changan Automobile, a key player in this success story, witnessed a 80.1 percent year-on-year surge in vehicle exports during the same period, exporting a total of 108,951 vehicles. The company's strategic initiatives, including the November launch of two new energy vehicles, Deepal L07 and Deepal S07, have contributed to its growing presence in international markets. At the recent Bangkok International Motor Show, Changan received 3,073 orders, securing the sixth position in terms of sales among all auto brands present.

Another homegrown automaker, Seres, has expanded its export footprint in Europe, now exporting to countries like Germany and France. Notably, the export price of Seres vehicles has seen a remarkable surge, ranging from $40,000 to $60,000, compared to the previous $5,000 range. The company's E5 model, a hybrid electric SUV, has garnered praise from dealers, particularly in markets like Uzbekistan, for its innovative features and superior performance.

Furthermore, heavy truck manufacturer SAIC Hongyan has witnessed a 205-percent surge in sales in the Indonesian market. The company also recently exported 100 smart heavy trucks and 500 firefighting trucks to Kazakhstan.

The success of Chongqing-made vehicles in overseas markets has attracted significant attention, with several countries actively inviting Chongqing automakers to establish manufacturing facilities within their territories. An example of this was when the government of Thailand introduced a series of industrial policies, including tax relief, consumption subsidies, and investment support, to attract companies like Changan. Seizing this opportunity, Changan has established three localized companies in Thailand and commenced the construction of a new energy vehicle manufacturing base.

Changan's global network now spans 16 product and research centers. These centers are supported by 17,000 technicians from 30 countries. Similarly, Seres has established over 1,000 marketing service teams, three marketing service centers, and eight knockdown (KD) assembly factories worldwide. SAIC Hongyan, through various collaborations, has set up three KD factories to enhance its global presence.

Government support has played a pivotal role in spearheading the exports of Chongqing automobiles. In December last year, Chongqing issued an action plan to support the global expansion of local automakers, emphasizing an export mode that integrates complete vehicle manufacturing, spare parts assembly, and localized operations. Innovative service modes have been introduced, and the New International Land-Sea Trade Corridor has facilitated faster and more cost-effective transportation for these exports.

Additionally, regulatory teams in Chongqing have conducted in-depth research on global auto regulations, tax requirements, investment opportunities, and localization policies, providing valuable policy guidance for automakers venturing into international markets.

Looking ahead, Chongqing automakers are poised to capitalize on emerging opportunities. Changan Automobile aims to become a world-class auto brand by launching 60 products globally by 2030, expanding its overseas network to over 3,000 outlets, and penetrating more than 90 percent of global markets.  Seres plans to introduce its all-new luxury smart SUV models globally, following its 2024 Global Business Conference.  SAIC Hongyan is focused on transitioning to localization and accelerating the export of new energy trucks, with plans to expand into the European and American markets soon.

With ambitious targets set for 2027, Chongqing aims to account for 10 percent of China's annual exports. This will bring its export value to over 120 billion yuan, and further solidify its position as a powerhouse in the global automotive industry.