Chongqing - At the 2024 Land-Sea Economic Forum in Chongqing, Wu Chaoze, Chairman of the CITIC Think Tank and Director of China Securities Research Institute, emphasized that Chinese enterprises should shift from export-focused operations to establishing a global presence.
Wu Chaoze, Chairman of the CITIC Think Tank and Director of China Securities Research Institute, delivered a keynote speech themed "From Exporting to Global Presence Industry Demands in Key Global Market for 2024." (Photo/WCICO)
Wu stressed that transitioning is not just about tariffs and production capacity but engaging in global competition and industrial upgrading. She highlighted four key areas for Chinese enterprises: enhancing brand value, cultural export capabilities, global operations, and industrial upgrading.
Wu highlighted the Chinese automobile sector's global potential in her keynote speech. In 2023, China exported 4.91 million vehicles, up 57.9% year-on-year, becoming the world's top auto exporter. Growth continued in Q1 2024, with 1.01 million gasoline and 307,000 NEV exports. Homegrown brands are achieving higher prices and profit margins due to increased productivity and global expansion.
Data from China Securities and the China Passenger Car Association (CPCA) show that in Q1 2024, top export destinations for Chinese cars included Belgium, Brazil, the UK, Thailand, and the Philippines. Wu is optimistic about Chinese automakers' global future, especially in the NEV sector, which held 62% of the global market share in Q1. The lithium battery, NEV, and photovoltaic export surge drives this expansion.
Liangjiang New Area, an automobile manufacturing hub in Chongqing, houses major brands like Changan Automobile, Seres, SAIC Hongyan, and Livan Auto. Changan Automobile is leading global expansion with its "Vast Ocean Plan," launched in April 2023. It aims to introduce 60 global products and establish over 3,000 outlets worldwide by 2030, covering 90% of the global market.
Changan Automobile received 3,073 orders at the Bangkok International Motor Show this April. (Photo/Changan Automobile)
A key milestone in Changan's global expansion was establishing its Thai subsidiary in November 2023, enabling market sales in Thailand. Changan announced an 8.8 billion Thai baht investment to build an NEV manufacturing base. Changan ranked sixth in sales at the April Bangkok International Motor Show with 3,073 orders.
In December 2023, Chongqing issued an action plan to support automakers' global efforts, promoting an integrated export model of vehicle manufacturing, spare parts assembly, and localized operations. Over 200 local auto-supporting enterprises form the cornerstone of this expansion.
For an expansive presence globally, Wu emphasized the critical role of localization, recommending that enterprises tailor products to local market needs, implement localized quality control, establish robust local support systems, adapt marketing strategies to fit local cultures, and hire and train local talent to manage operations effectively.