Export-driven sales growth, the Belt and Road has become a key export region

The second report in the series of insights of Chinese companies in the automotive industry going abroad: export-driven sales growth, the Belt and Road has become a key export region

Auto export has become an important factor driving the growth of auto sales: According to the statistics of CCA, the export volume of China's auto industry in 2020-2022 is 995,000 units, 2.015 million units and 3.111 million units, with the year-on-year growth rate of -2.86%, 102.55% and 54.35%, accounting for 3.9%, 7.7% and 11.6% of the total auto sales, 7.7%, 11.6%, auto exports have become an important factor driving the growth of China's auto sales.

　　Passenger cars: SAIC maintains its leading position, and independent brands continue to strengthen their overseas layout: SAIC's overseas sales will be 39/70/102 million units from 2020 to 2022, respectively, making it the leading overseas sales company in China's auto industry. SAIC Group is actively promoting its global business layout and has established three overseas manufacturing bases in Thailand, Indonesia and India, and built a KD plant in Pakistan. We believe that as SAIC Group continues to strengthen its overseas business, overseas sales are expected to continue to grow. In addition, BYD, Changan Automobile, Great Wall Motor and Geely Automobile also regard export business as an important growth point for their future sales, and continue to strengthen their overseas layout by exporting complete vehicles, exporting in KD mode, acquiring overseas brands, establishing overseas manufacturing bases and other ways to strengthen their overseas layout.

　　The company is a leading exporter of heavy trucks in China, with overseas sales of heavy trucks ranking first in the industry year after year. 2020-2022 export sales of China National Heavy Truck are 3.1/5.4/8.9 million units respectively. The company has established overseas marketing network by deepening its capacity in vehicle sales, technical service, parts supply, modification and overseas KD assembly, and now has established representative offices and offices in 69 countries and regions around the world, with more than 180 dealers, 270 service stations (including more than 50 4S stores) and 240 parts sales points in the international market. With its many years of deep plowing layout, the company's export sales are expected to maintain high growth.

　　Bus: Emerging markets and high-end European markets are the key regions for bus exports: Yutong Bus has achieved global layout, with products sold in bulk to more than 40 countries and regions around the world, covering six regions, including Europe, America, Africa, Asia Pacific, Middle East and CIS; Golden Dragon's overseas sales network covers more than 160 countries and regions in Europe, Asia, CIS, Africa, South America, Middle East and Oceania, with nearly The company has a stable customer base and strategic partners, and its products cover more than 100 countries and regions overseas; Yaxing Bus has developed a special CRM system for overseas marketing companies, which can track the status of intended orders and facilitate the company to grasp the orders.

　　Investment advice: overseas demand for buses is rising, and Chinese brand buses have greater advantages over competitors in terms of product cost performance and supporting services, etc. It is recommended to pay attention to Yutong Bus and Golden Dragon Bus. Overseas heavy truck demand, heavy trucks and semi-trailer sales overseas has become an important part of the income of the heavy truck industry chain companies, we recommend focusing on CIMC vehicles, Weichai Power, China National Heavy Duty Truck.

　　 Risk tips: overseas expansion is not as expected; industry competition intensification risk; macroeconomic downside risk.