Opportunities for export of automobiles and parts will increase next year

After the outbreak of the world financial crisis in 2008, the development of the world's automotive and parts and components markets was quite severe. Afterwards, the recovery of auto and auto parts markets in various countries also varied. The developed countries have rebounded under their respective rescue policies, but they have not been very satisfactory. Although the Chinese market has seen an explosive growth in the automobile and parts markets following the outbreak of the economic crisis, some emerging automobile markets such as Russia are still mired in a quagmire. This has caused a strong contrast between China's imports and exports of automobiles and parts.

The impact of the international financial crisis on the market is complex. In order to protect their own interests, the protection of trade in various countries has continued to intensify, and they have been subject to anti-dumping investigations or technical barriers to limit imports. China's auto parts export companies suffer from it. For example, the European Union officially launched an anti-dumping investigation on China's aluminum alloy wheels on August 13. It involved more than 60 major Chinese companies and directly affected China’s exports by 390 million U.S. dollars. In addition, the United States, Russia, India, and other countries have also taken anti-dumping measures against China's exports of automobile drive shafts and fasteners. These are major tests for the export of Chinese auto parts and components companies.

If the East does not shine brightly in the West, exports of autos and parts that are continuing to decline will usher in new life.

In January 2010, China will establish a free trade zone with the six ASEAN countries. It will also sign a free trade agreement with Chile and Peru. Under the favorable conditions of reducing tariffs and investment thresholds, China will bring more opportunities for Chinese cars to enter the overseas market. More opportunities lay a good foundation for the domestic automobile export market to pick up again next year.

With the establishment of the China-ASEAN Free Trade Area, the ASEAN automobile import and export industry, which has always had a severe barrier, has also entered a new period of development. According to industry analysts, Malaysia and Indonesia have strong automobile consumption capacity and huge market space. Vietnam, Laos, Cambodia and other countries, due to insufficient development of the domestic auto industry, have brought greater development space for China's auto export industry.

Looking for new growth points, China’s auto parts and components exports to South America are in urgent need of break.

Like other countries and regions in the world, Chinese automakers' exports to South American countries also began to plummet from the second half of 2008 due to the impact of the financial crisis. In the first three quarters of 2009, it was a year-on-year drop of 64.3%. Before the outbreak of the financial crisis, Chinese auto exports to South American countries were growing steadily. Since 2004, there have been more than 1,000 vehicles exported sporadically. In 2007, it reached a peak period and grew 178.9% year-on-year. Even in 2008 when the financial crisis hit, the year-on-year growth rate still reached 21.6%, which is higher than the 11.1% average of China's overall external export growth.
However, relative to the difficult markets in Europe and the United States, domestic automobile exports have dropped sharply this year. China’s self-owned brand cars still maintain a good level of exports to South America, especially Chile and Peru are in a strong rising channel. Our country has now become the second largest trading nation in Latin America.

As most of the requirements of the relevant standards in the South American market are based on internationally accepted standards such as Europe and the United States, non-technical barriers are relatively small, which is a favorable side. However, relative to the markets of Africa and Southeast Asia, the development of the South American market is still a relatively weak link. On the one hand, it is because of the distance, and more importantly, the Chinese car companies are not enough to understand the diversified market in South America. Nevertheless, the pace of self-owned brand vehicles entering the South American market has not stopped. South America's relatively loose import quotas, technology, and market access policies have allowed FAW Group, Great Wall Motors, Chery Automobile and other independent brand cars to initially open up in South America.

Up to now, the South American auto market has become the world's fourth largest auto market after North America, Asia and Europe, and its growth rate is faster than any of the above markets. During the 10 years from 1996 to 2006, the average annual sales growth of South American cars was 29%, and it has increased to nearly 4 million vehicles by 2007. Among them, South American automobile sales have experienced a rapid growth since 2003, from 1.92 million vehicles in the year to 3.94 million in 2007, which has increased 105% in total in five years, which has doubled.

In South American countries, cars and trucks dominate the market. According to forecasts of world-famous market research institutions, the demand for cars and trucks in South America will increase from 3.1 million in 2006 to 3.7 million in 2010.

How to deal with the diversification of the automotive market in South America has become the biggest challenge for automotive companies. Here, the approach of the multinational auto giants such as Ford and General Motors, which entered the South American market earlier, is quite meaningful. Their secret is to adopt a regional strategy that fully utilizes the free trade zone policy instead of establishing the same automobile factory in each region. Ford, for example, produces cars in several manufacturing-dominated countries. The result of this is that Ford exported his car from Brazil to Argentina and Venezuela and made a lot of profit, and if the Brazilian currency appreciated, Ford could import more cars from Argentina and Venezuela.

With policy support, the development trend of automobile and parts exports will increase.

On October 16, the “Opinions on Promoting the Sustainable and Healthy Development of China’s Automobile Products Export” issued by the six ministries and commissions including the Ministry of Commerce and the Ministry of Industry and Information Technology, for the first time clarified that “by 2015, automobile and parts exports will reach 85 billion U.S. dollars, with an average annual increase. About 20%; By 2020, China's auto and auto parts exports will account for 10% of the world's total auto product trade. "The policy adjustment period will inevitably bring about a certain wait-and-see attitude, but experts believe that the impact will not be too great. Still hope that Chinese companies can seize the opportunity to go abroad and expand a broader space.

In a good development environment, companies should be more self-reliant.

Although entering the ASEAN market is not as difficult as the EU market, Chinese companies should still increase product development and increase product technology content. The supply of complete vehicle sales and maintenance parts in developed countries has formed a coordinated sales layout. However, there are still many deficiencies in the development of complete vehicle companies and parts and components companies in China, and no effective strategic cooperation has been formed. Technological R&D is also in each case. Industry insiders believe that at present, more than 80% of China's auto parts exports still remain in the aftermarket maintenance market, and only a few enter the global matching market. Therefore, despite the rapid development of China's vehicle exports in recent years, there is little support for auto parts companies to expand into overseas markets. Auto parts do not need to change from repairing the market to maintaining the market and supporting the market. In this way, we can get rid of anti-dumping investigations caused by low-price competition and embark on the road to transformation and upgrading.