In 2023, the Chinese automotive industry finally achieved a long-sought status — becoming the world's largest exporter of cars. Recently, traditional luxury brands in China have started to offer significant discounts, with BMWs available at 50% off and the Mercedes-Benz EQS with a price drop of over 600,000 RMB. On the other side, Chinese car exports have faced increased tariffs in Europe and the United States. As the saying goes, with great power comes great responsibility.

China's Car Exports Catch Up With Japan's

According to data from the China Association of Automobile Manufacturers, Japan Automobile Manufacturers Association, Association of the German Automotive Industry, and Korea Automobile Manufacturers Association, China's car exports surged to 5.26 million units in 2023, officially becoming the world's largest car exporter. In the first quarter of 2024, the cumulative export volume of complete vehicles in China reached 1.322 million units, a year-on-year increase of 23.6%.

Tariffs and Trade Barriers

Trade barriers are nothing new. The current situation of Chinese cars reminds us of the birth of Lexus. In the 1980s, influenced by two oil crises, Japanese cars were retreating in the North American market, leading to a trade war between the US and Japan. Cars also became a "voluntary export restraint" industry for Japan, with an annual export limit of 1.68 million units.

Overseas Expansion and Challenges

Chery, SAIC Motor, Geely, and BYD have different approaches to overseas expansion. Chery's 2023 export volume reached 937,000 units, a 101% increase from 2021. Chery's main export regions are Russia, Latin America, and the Middle East, where the local automotive industry is underdeveloped and relies on imported cars. BYD's total export volume in 2023 was 243,000 units, all of which were new energy vehicles, a year-on-year increase of 334%. SAIC Motor's main export brand, MG, has a sales proportion of nearly 55% in developed countries such as Europe, delivering 230,000 vehicles in Europe in 2023. Geely's approach to overseas expansion may seem gentler to overseas users than SAIC Motor's.

Design and Cultural Victory in the New Energy Era

It is foreseeable that policy trade barriers cannot last long. The export of Chinese new energy vehicles can be taxed to hinder, but the resistance to the export of advantageous technology is much smaller. The design homogenization trend caused by technological convergence will undoubtedly prevail on a larger scale. The struggle for the right to speak in technology, Chinese cars have achieved results. The struggle for aesthetic discourse that highly influences the establishment of luxury brands has just begun.

Speeding Up Design Efficiency

Geely's design centers are spread across Shanghai, Ningbo in China, Milan, Turin in Italy, Gothenburg in Sweden, and Coventry in the UK. Leveraging the strengths of different global centers and cloud platform technology, top designers from different countries can work together across time zones. The introduction of AI has greatly shortened the efficiency of the early creative stage. Traditional sketching relies heavily on the designer's inspiration, but now, with Geely's self-built AI model, hundreds of concept sketches can be created in a very short time.