South Korean media: From "mockery" to "admiration", the rise of Chinese cars overseas!

On January 14, the South Korean media "Choice Economy" published an article stating that the Chinese automotive industry started late and had little presence in the global market. However, the recent surge in exports of internal combustion engine (ICE) vehicles from China has attracted widespread attention.

Analysts believe that within just 10 years, Chinese cars have transformed from "objects of ridicule" to "objects of admiration" in overseas markets. Today, as electric vehicles have become a topic of discussion, Chinese ICE vehicles are launching a "quiet counterattack" in overseas markets.

According to data from the China Association of Automobile Manufacturers, China's car exports reached 2.015 million units in 2021, with ICE vehicle exports amounting to 1.705 million units (accounting for 84.6%). In 2024, ICE vehicle exports increased to 4.574 million units, accounting for 78.1% of total exports.

As of November last year, eight out of the top ten passenger car exporters in China mainly sold ICE vehicles, effectively forming the backbone of exports.

Chery Auto achieved particularly remarkable results in exporting ICE vehicles. From January to November last year, Chery exported a total of 1.199 million vehicles, with about 30% being electric vehicles, meaning that approximately 800,000 ICE vehicles were exported. During the same period, SAIC Group exported a total of 969,000 vehicles, of which about 500,000 were ICE vehicles.

Chinese ICE vehicles have experienced explosive growth overseas, becoming the absolute main force of China's car exports. So what is the reason behind this?

The secret to the popularity of Chinese ICE vehicles overseas lies in the advanced technology, low prices, and precise targeting of real-world needs that electric vehicles have yet to meet.

Jiang Han, a senior researcher at the PanGu Research Institute, pointed out that rapid technological advancement is the main driving force behind the sharp increase in exports of Chinese ICE vehicles. He analyzed: "Chinese automakers have significantly increased R&D investment, attracted top engineers from around the world, actively introduced new technologies, and innovated, successfully overcoming core technology bottlenecks."

Through continuous accumulation of technological competitiveness, Chinese ICE vehicles are shedding their image of "low quality and low price," entering the international market with high-performance and high-quality vehicles, thereby ensuring their favorable competitive position.

He further pointed out that strong global demand is a key factor. Looking at the global market, electric vehicles have not completely replaced ICE vehicles. Although the trend toward electrification is strong, in many emerging markets including Southeast Asia, the Middle East, Africa, and South America, the lack of charging infrastructure is a major obstacle to the popularization of electric vehicles.

Chinese ICE vehicles have accurately grasped this demand, quickly capturing the market with their performance that can operate reliably even in harsh environments such as hot deserts or cold plateaus, as well as their reasonable prices.

Jiang Han also emphasized that "high cost-effectiveness" is another key competitive advantage. China has the most complete automotive supply chain and strong manufacturing capabilities in the world. The fierce competition among parts manufacturers has reduced costs, while the vast domestic market and efficient production system have achieved economies of scale. Therefore, Chinese ICE vehicles can enter the market at low prices while ensuring quality.

He also pointed out that the progress of industrial and service networks is another important factor. In the past, Chinese automakers were limited to "one-time exports," focusing only on vehicle sales while neglecting after-sales services. However, today, Chinese enterprises are systematically building global service networks, including overseas sales networks, service centers, and spare parts warehouses. As a result, consumers can not only conveniently purchase vehicles but also obtain maintenance, repair, insurance, and financial services nearby.

Jiang Han said: "The rapid growth of Chinese ICE vehicles in overseas markets is no accident. Through long-term systematic development, they have established clear and differentiated competitive advantages and are now becoming a force that cannot be ignored in the global automotive market."

Original article: toutiao.com/article/1854258168117260/

Statement: This article represents the views of the author.