NEVs expected to drive auto exports

New energy vehicles are fast emerging as a key driver of China's vehicle exports as they continue to gain in popularity in overseas markets, including Europe.

Some 54,000 electrified passenger vehicles－a term which refers to electric cars and plug-in hybrids－were shipped out from the world's largest vehicle market in January, up nearly 539 percent year-on-year, according to the China Association of Automobile Manufacturers.

They helped push the country's total vehicle exports in the month to a record 231,000 units, up nearly 88 percent year-on-year, CAAM data showed.

Xu Haidong, a deputy chief engineer at the CAAM, said the rise in NEVs' global popularity has presented new opportunities for carmakers in China as they started earlier in the sector and have developed a competitive edge over rivals.

Xu did not specify the target markets to where NEVs were exported in January, but data from the General Administration of Customs of China showed five out of the top 10 destinations in 2021 were in Europe: Belgium, the United Kingdom, Germany, France and Slovenia.

Last year, SAIC, a Chinese automaker, delivered over 50,000 NEVs to Europe, accounting for over 70 percent of its total auto sales in the continent.

It is planning to launch an electric vehicle this year designed for Europe, the first of its kind among the carmaker's product portfolio.

Liu Xinyu, vice-president of SAIC France, said the model is the result of the efforts of SAIC's teams in China and the UK, who gave full consideration to European customers' needs and inputs.

Liu said Europe is seeing a roughly 20 percent year-on-year rise in NEV sales, and the model is to offer gasoline car owners a decent alternative if they wish to go electric.

"Major German carmakers are planning such vehicles as well, but theirs will not come until 2025.Ours will hit the market this year," he said.

Yu De, managing director of SAIC's international business department, said the EV model and several others scheduled to be available in Europe this year will help expand its deliveries to reach up to 120,000 units.

SAIC is beefing up its network of sales and service centers in Europe, with their number expected to hit 1,200 this year. "We are opening a new dealership every three days or so," said Yu.

SAIC aims to sell at least 240,000 NEVs annually in Europe by 2025, as part of its goal to deliver 1.5 million vehicles in overseas markets in the same year.

Chinese NEV startups are also exploring the European markets, often with Norway as the most popular gateway into the continent.

Last year, EVs accounted for 65 percent of new car sales in the northern European country, and the figure is expected to reach 80 percent this year, according to the Norwegian EV Association.

Shanghai-based Nio opened a showroom in central Oslo in 2021, its first overseas, aiming to sell its ES8 SUVs and ET7 sedans as part of plans to expand globally.

Nio said its products will be available in more than 25 countries and regions worldwide by 2025.