China: annual vehicle exports top 1m

Another first for China: annual vehicle exports in 2012 exceeded 1m for the first time.

According to the China Association of Automobile Manufacturers vehicle exports rose 30 per cent last year to 1,056,100. That compares with just 19,000 in 2001. A global industry transformed in a decade.

Chery Automobile and Zhejiang Geely Holding Group were the top two exporters, followed by Great Wall Motors, SAIC Motor Corporation and Chongqing Lifan Industry Group, said the association.

With companies facing heavy competition in the domestic economy – where vehicle sales rose by just 4 per cent – Chinese manufacturers have increased their drive into foreign markets.

Zhao Ying, a professor at the Institute of Industrial Economics of the Chinese Academy of Social Sciences, told the state-run China Daily newspaper that the latest export figures showed that domestic brands had started increasing their profile and reputation globally, and that further overseas expansion will naturally mean they will raise their quality standards and their levels of technology.

China Daily said that Anhui-based Chery, the industry leader for the past seven years, said that it expects its overseas sales to have surpassed 200,000 units in 2012. The company said it had also established 17 manufacturing bases in 15 countries in five continents by the end of 2012.

For western and Japanese multinational car companies the message is clear. The same Chinese companies that are giving you a tough time in China will be increasing the pressure in other markets. With the domestic market forecast to grow by just 7 per cent in 2013, the drive to exports will be maintained.

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