The Second of The Series of Insight Reports of Chinese Enterprises in The Automotive Industry: Export Drives Sales Growth. The Belt and Road has Become a Key Export Region

Automobile export has become an important factor driving the growth of automobile sales: According to the statistics of the China Automobile Association, the export volume of China's automobile industry in 2020-2022 is 995,000, 201.15 million and 3.111 million, respectively, with year-on-year growth rates of -2.86%, 102.55% and 54.35%, respectively. Accounting for 3.9%, 7.7% and 11.6% of the total automobile sales in that year, automobile exports have become an important factor to stimulate the growth of automobile sales in China.

Passenger cars: SAIC maintains the leading position, and its own brands continue to strengthen the overseas layout: in 2020-2022, SAIC's overseas sales are 39/70/1.02 million, which is the overseas sales leader in China's automobile industry. Saic has actively promoted its global business layout, established three overseas manufacturing bases in Thailand, Indonesia and India, and built KD plant in Pakistan. We believe that as SAIC continues to strengthen its overseas business, overseas sales are expected to continue to grow. In addition, BYD, Changan Automobile, Great Wall Automobile and Geely Automobile will also export business as an important growth point of the company's future sales, and continue to strengthen overseas layout through vehicle exports, KD model exports, the acquisition of overseas brands, the establishment of overseas manufacturing bases and other ways to strengthen overseas layout.

Truck: Export sales continue to grow, leading to accelerate the layout of the sea: SinotruK is China's heavy truck export leader, heavy truck overseas sales are ranked first in the industry. The export sales volume of China's heavy duty trucks in 2020-2022 is 3.1/5.4/89,000 units respectively. The company continues to deepen vehicle sales, technical services, spare parts supply, modification and overseas KD assembly capacity, establish overseas marketing network, currently in 69 countries and regions in the world to establish representative offices and offices. In the international market, it has more than 180 dealers, more than 270 service stations (including more than 50 4S stores) and more than 240 parts sales points. With its deep cultivation over the years, the company's export sales are expected to maintain high growth.

Bus: Emerging markets and European high-end markets are key areas for bus exports: Yutong bus has achieved global layout, products are exported to more than 40 countries and regions in the world, covering Europe, the Americas, Africa, Asia Pacific, the Middle East, CIS and other six regions; Jinlong Auto's overseas sales network covers more than 160 countries and regions in Europe, Asia, CIS, Africa, South America, Middle East and Oceania, and has maintained good cooperative relations with nearly 200 overseas auto dealers or customers. Zhongtong Bus has a stable customer base and strategic partners, products covering more than 100 countries and regions overseas; Yaxing Bus has developed a special CRM system for overseas marketing companies, which can track the situation of the intended order, so that the company can grasp the situation of the order.

Investment advice: The demand for overseas buses is increasing, and Chinese brand buses have great advantages over competitors in the fields of product cost performance and supporting services. It is recommended to pay attention to Yutong buses and Jinlong buses. The demand for overseas heavy trucks has increased, and the overseas sales of heavy trucks and semi-trailers have become an important part of the revenue of heavy truck industry chain enterprises. It is recommended to pay attention to CIMC Vehicles, Weichai Power and SinotruK.