China's Automotive Industry Expands Overseas: A Strategic Imperative

In recent years, China's automotive industry has accelerated its expansion overseas. According to the latest data from the China Association of Automobile Manufacturers, in the first half of this year, China's automobile exports reached 3.083 million units, a year-on-year increase of 10.4%, demonstrating the continued vitality of the automotive sector. For Chinese car manufacturers, going overseas has become a strategic necessity. With the domestic automotive market becoming increasingly saturated, international markets present new growth opportunities and avenues for development, facilitating scale expansion and promoting sustained growth in sales and revenue. The shift towards internationalization is no longer optional but essential. China's automotive industry is transitioning from 'product output' to 'value creation'. It is essential for Chinese manufacturers to cultivate local ecosystems patiently, akin to 'farmers', while intelligently connecting global resources like 'network weavers' to take a leading position in global automotive competition. This involves three key shifts: 1. Transitioning from 'vehicle export' to 'localized roots'. In an increasingly complex external environment, traditional vehicle export models face bottlenecks, urging Chinese manufacturers to seek deeper survival strategies through localized supply chain reconstruction. True global operations must achieve deep localization in R&D, procurement, production, and marketing, requiring long-term investments. Companies like Changan Automobile are already taking action, establishing a localized team of over a thousand in Thailand, customizing products and services according to local market demands and regulatory standards. 2. Moving from 'going it alone' to 'ecosystem co-construction'. The future of China's automotive exports hinges on the ability to build a global service ecosystem that covers upstream and downstream sectors across multiple domains, achieving a shift from 'selling products' to 'empowering industries'. This requires integrating comprehensive elements such as vehicle manufacturing, core technologies, infrastructure, and technical standards to form a strong systemic output capability. Additionally, Chinese companies can form deep alliances with local industry partners to provide digital solutions and open technology platforms, positioning themselves as 'enablers' in the restructured global automotive value chain. 3. Expanding from 'sales endpoints' to 'full lifecycle operations'. The rise of new energy vehicles has fundamentally changed the profit models and value chains of the automotive industry, making after-sales services a critical battleground for competition. Tapping into the value of the after-sales market will be crucial for Chinese automotive brands to establish a good reputation and achieve sustainable profitability abroad. This requires manufacturers to abandon short-term sales mindsets, ensuring that services are integrated throughout the entire consumer journey—from purchasing, usage, and charging to maintenance, second-hand circulation, and eventual recycling. Only by adopting the mindsets of both 'farmers' and 'network weavers' can China's automotive industry set sail in the global market.