Chinese Auto Export Drops 10%, Commercial Ministry Publishes Warning Order

Chinese Auto export has increased fast, but added value is still limited. Chinese auto companies may be big but not strong at present.

On Sept 13, LuXun Zhi , Vice deputy director of Electromechanical and Technology Deputies, has taken an three figures example to prove the situation of Chinese auto export situation at present on “2013 Key Auto Export Market Policy and Regulation Seminar”, Chinese export trade takes only 5% of the entire capacity, Chinese auto export trade capital takes only 1% of the entire world export trade, and average price of an export car is 13 thousand US dollar.

According to the statistics from Commercial Ministry, Chinese export auto volume only takes 5% of total auto production. However, the figures for German, Japan and Korea export auto are 70%, 60% and 50% above. Besides, the average price 13 thousand US dollar is equal to 60% average price of Korean auto and 40% of Japanese.

“We grow fast, but added value is still low”. LuXun Zhi stresses that particularly this Jan to July, the entire auto export is declining, and accessory export is declining as well with influence of oversea demand flexure. Chines auto export is facing grim situation.

According to the latest custom statistics, Chinese auto export in sum in the first 7 months is 639,413, which has declined 10% over the performance of last year.

It only takes 11 years of Chinese auto export breaking 1 million from 20 thousand. However, auto manufacture developed countries such as Japan, Korea and German have taken 15 to 20 years to achieve 1 million export volume.

Besides, auto accessory export has developed fast as well. It has achieved 50 billion US dollar last year from 2.5 billion US dollar in 2000. Besides, accessory is different from auto market, because accessary is export to developed counties, but auto is exported to developing ones.

Chinese auto export grows fast, but core index is not optimistic enough. 5% auto capacity is exported. Compared with traditional auto manufacture counties, Chinese export volume is just a piece of iceberg. Even export capital is small as well. Chinese export capital takes 1% of the world export, but figures of Japan and Korea are 7% and 8% respectively.

From the export destination perspective, the largest market of China is Algeria, then South America and Middle East countries. They are developing counties, but export volume to developed countries is still small.

What’s more, average price of export auto is very low, which was 13 thousand US dollar last year. It is equal to 60% of Korean export auto price and 40% of Japanese. However, we import 25 thousand US dollar average per car, 1.5- 2.0 displacement. 4 times price distance between export and import.

Therefore, Chinese auto export still has problems to solve. For an example, China exports Russia 45,708 vehicles in the first 7 months this year, which has decreased 11.9% over last year, and July decrease is up to 40%. Russian market is epitome of Chinese unstable auto export situation.