The export strategy of Chinese EV companies

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Introduction: At present, my country’s electric bicycle industry has developed to a state of gradual saturation, with overcapacity and oversupply
It will be the norm in the electric bicycle industry in the future. There are more than 150 million electric vehicles on the road in China, 80% of which are domestically produced
Electric vehicles are sold domestically. This also shows that expanding foreign markets is the main strategic goal of the company’s future development. Today, across the country
Among the many manufacturers in China, the situation of being unable to continue has gradually appeared, and then there is a reality of withdrawing from this market and seeking another development
situation. Among the remaining remaining manufacturers, some have embarked on a hand-to-hand combat mode of low-price vicious competition, which is tantamount to drinking poison
Quenching thirst is extremely detrimental to the overall development of the electric bicycle industry. So, how to break out of this predicament and regain your life
storage space? According to the marginal industry transfer theory, a part of excess production capacity will be directed to foreign emerging markets, and the first to understand this
These emerging markets, and then expand the market share, is to lay the foundation for the future development of my country’s electric vehicle industry towards internationalization.

Introduction: At present, my country’s electric bicycle industry has developed to a state of gradual saturation, with overcapacity and oversupply
It will be the norm in the electric bicycle industry in the future. There are more than 150 million electric vehicles on the road in China, 80% of which are domestically produced
Electric vehicles are sold domestically. This also shows that expanding foreign markets is the main strategic goal of the company’s future development. Today, across the country
Among the many manufacturers in China, the situation of being unable to continue has gradually appeared, and then there is a reality of withdrawing from this market and seeking another development
situation. Among the remaining remaining manufacturers, some have embarked on a hand-to-hand combat mode of low-price vicious competition, which is tantamount to drinking poison
Quenching thirst is extremely detrimental to the overall development of the electric bicycle industry. So, how to break out of this predicament and regain your life
storage space? According to the marginal industry transfer theory, a part of excess production capacity will be directed to foreign emerging markets, and the first to understand this
These emerging markets, and then expand the market share, is to lay the foundation for the future development of my country’s electric vehicle industry towards internationalization.
1. Industry status analysis
1.1. my country is the world’s largest production and sales country of electric bicycles
In order to cope with the deterioration of the global environment and traffic congestion, many countries around the world, especially my country, have begun to vigorously promote energy-saving and environmentally-friendly vehicles. Electric bicycles will inevitably become one of the first-choice targets.
The role played will become increasingly important.
my country’s electric bicycle industry has experienced rapid growth from scratch in 2002-2006, and after rapid popularization
After that, the growth rate will be maintained within 10%-20% in the past three years. According to industry association statistics, the current number of electric bicycles in my country is 1.5
About 100 million vehicles. According to the statistics of Gaogong Lithium Battery, the sales volume of electric bicycles in my country in 2012 was 35.05 million, plus the cost of parts and components
Aftermarket, the annual output value exceeds 100 billion yuan. Accounting for about 90% of the global market, my country has truly become the world’s largest
The largest electric bicycle production and sales country.
As an environmentally friendly means of transportation, electric bicycles will inevitably become one of the preferred targets.
The role played will become increasingly important.
my country’s electric bicycle industry has experienced rapid growth from scratch in 2002-2006, and after rapid popularization
After that, the growth rate will be maintained within 10%-20% in the past three years. According to industry association statistics, the current number of electric bicycles in my country is 1.5
About 100 million vehicles. According to the statistics of Gaogong Lithium Battery, the sales volume of electric bicycles in my country in 2012 was 35.05 million, plus the cost of parts and components
Aftermarket, the annual output value exceeds 100 billion yuan. Accounting for about 90% of the global market, my country has truly become the world’s largest
The largest electric bicycle production and sales country.
1.3. Promoting industrial transformation under the background of national policies
1.3.1 National Standards for Electric Bicycles Promulgated to Promote Lightweight Electric Bicycles
The industry is constrained by the 1999 National Standard for Electric Bicycles and the 2009 International Standard for Electric Motorcycles. The speed of the vehicle cannot exceed 20 km/h, and the weight of the vehicle cannot exceed 40 kg. The development of electric bicycles has directly led to the China Bicycle Association’s application to suspend the implementation. There are different attitudes towards electric bicycles across the country.
1.3.2 The implementation of environmental protection policies promotes the replacement of lead-acid batteries by lithium-ion batteries
Traditional electric bicycles use lead-acid batteries. In addition to the environmental pollution caused by lead-acid batteries in the production process, lead-acid batteries generally have a short service life of only one year. In cities with a large number of electric bicycles, there are currently A large number of waste lead-acid batteries, if these waste lead-acid batteries are not handled properly, the low recovery rate will cause serious environmental pollution.
For this reason, the five ministries and commissions jointly initiated the rectification of the lead-acid battery industry. At present, the number of enterprises in the lead-acid battery industry has dropped significantly. The original more than 2,000 battery enterprises have now been reduced to nearly 300. With the maturity of battery technology and the cost reduction brought by large-scale production, lead-acid batteries will gradually be replaced.
1.3.3 Battery electric vehicles have broad prospects for development Under the conditions of national policy support and rapid development of potassium battery technology, the speed of potassium electrification of electric bicycles is accelerating, and the development prospects are broad. In 2010, the sales volume of electric bicycles was 400,000 units, in 2011 it reached 650,000 units, in 2012 it climbed to 1.7 million units, of which the export and domestic sales were 1 million units and 700,000 units respectively, and the compound growth rate from 2006 to 2012 reached 79.99%. 0.26%, up from 4.85% in 2012. The competition among brands has become fierce, and the upgrading of the industry cannot be achieved only by breaking through the price. Although there is still a certain gap between potassium electric bicycles and lead-acid electric bicycles in terms of battery stability, battery life and after-sales service, as domestic electric bicycles are changing from the pursuit of quantity to the pursuit of quality, lightweight and potassium electric bicycles have become With the development trend of electric bicycles, the market of electric bicycles in our country is gradually opening up. Some responsive car companies have already adjusted the research and development of models, increased the research and development of potassium electric bicycles, and will seek development opportunities in the electric bicycle industry
2. Going out strategy analysis
2.1 It is an inevitable trend for Chinese electric vehicle companies to go abroad
China’s electric bicycle industry has developed rapidly in recent years. As of 2011, there are 2,000 electric vehicle manufacturers nationwide, and more than 3,000 related spare parts manufacturers, with more than 500,000 employees, and as many as 15 provinces that research, develop, and produce electric vehicles. According to statistics from the China Electric Bicycle Association, the domestic production of electric bicycles in 2010 was 29.5 million. In today’s electric vehicle market, there are thousands of brands competing fiercely, which has led to a decline in the profits of the entire industry. The competition is fierce and the profits are meager. If Chinese electric vehicle companies want to survive and develop, they must go abroad.
Many electric vehicle manufacturers with advanced awareness have already started work in this area, mainly exporting to developed countries with relatively high environmental protection requirements such as Europe, the United States, Canada and Japan, and the export volume has skyrocketed. It has laid a good foundation for more electric vehicle companies to go abroad.
2.2 Chinese electric vehicle companies have great potential to go abroad
After more than 10 years of development, Chinese electric vehicle companies have already possessed excellent qualities to go abroad. In recent years, electric vehicles produced in China have accounted for more than 90% of the world’s total output, and China is at the leading level in the world in terms of electric vehicle technology. Specifically, the advantages of Chinese electric vehicle companies are mainly reflected in:
1. China’s bicycle industry has strong competitiveness, a solid position in the international market, and products with considerable reputation, laying a good foundation for the export of electric vehicles
2. China’s electric bicycles are in the leading position in the world in the application of torque sensor technology and integrated circuit controller technology, which can adapt to different technical requirements of various countries. (optional)
3. China has established a strong production base for electric vehicle parts and more than 2,000 complete vehicle companies, which can meet the needs of all parts of the world
4. Foreign labor costs continue to increase, while China’s labor costs have stabilized and declined in recent years, and it has strong competitiveness in the international market.
5. For decades, China has established a relatively complete international marketing network in the process of exporting bicycles, providing superior conditions for the export of electric vehicles.
On the other hand, the global oil crisis has created good conditions for Chinese electric vehicles to go abroad. More and more wise people realize that automobiles are not the only and best means of transportation. Since 1997, the governments of many countries in the world have properly restricted automobiles, motorcycles, and mopeds. Japan, the United States, France and other countries have passed laws to clarify the status of electric vehicles as a special bicycle to encourage people to actively use them. 2.3 Where is the ideal market for electric vehicles in China?
Compared with previous years, the export of China’s electric vehicles has made great progress, but they are mainly exported to economically developed countries and developing countries similar to China’s national conditions, such as India, Brazil, Peru, Mexico, Egypt, etc. , China’s electric vehicle companies are still less involved
We believe that these countries have huge market potential. If they work hard to develop, they will become the largest overseas market for Chinese electric vehicle companies in the future and the most ideal overseas market. There are four reasons: First, these countries are not very economically developed, but their development speed is relatively fast. Fast, the main means of transportation are bicycles and motorcycles. Second, with a large population and great consumption potential, the main purpose of people in these countries to buy electric vehicles is to replace bicycles and motorcycles as a means of transportation, rather than mainly for leisure and fitness as in European and American countries. Third, these countries are not as demanding on electric vehicles in terms of product technology and quality as European and American countries, which can effectively reduce production costs. Fourth, these countries are facing the same problems as China. The energy crisis and oil shortage restrict economic development. Energy saving will become an important goal of the government, and electric vehicles are increasingly supported by the government because of energy saving and environmental protection.
2.4 Matters needing attention in the export of electric vehicles
When Chinese electric vehicle companies face the international market, they must understand the relevant regulations on electric vehicles in different countries, such as (1) European regulations. Powered by a 250 watt electric motor with assist starting. Statutory maintenance is two years. (2) The demand in the Japanese market is mainly light type <20kg, power-starting intelligent type, with a mileage of 260 kilometers (3) France stipulates that the power is 350 watts, and the speed is 20 miles per hour (4) The American market has relatively high reliability requirements for products , because it is difficult to establish an after-sales service system in the United States, so the products to be repaired cannot open the American market.
2.5 Current export methods of electric vehicles
1. Vehicle export. High quality requirements, foreign dealers require the repair rate to be less than 2% within two years, and hope not to replace the battery within two years. Light electric vehicles using potassium batteries are popular.
2. Parts export. Exporting spare parts from China to foreign assembly is more profitable than exporting complete vehicles
3. Accessories export. Some parts are produced abroad, and some parts are exported domestically, and then assembled into the whole vehicle. Each enterprise can adopt different export methods according to the different conditions of each country.
In the process of exporting electric vehicles, according to the different requirements of different countries for vehicle models and configurations, electric vehicle manufacturers should invite designers and relevant technical personnel from various countries to assist in designing the most popular and marketable products that they like. Products must be planned in advance, train after-sales maintenance service personnel locally, let them understand the technical points of Chinese products, and prepare necessary spare parts; products must be continuously improved, listen carefully to the opinions and requirements of local consumers on products, and communicate with local distributors Collaborate in partnership
If this is done, China will dominate the electric bicycle industry, and Chinese factories will have the opportunity to provide energy-saving, environmentally friendly and safe electric bicycles as a means of transportation to millions of people around the world.


Post time: Jan-16-2023