China-Europe freight train service now an increasingly important channel for NEVs exports

Photo taken on March 31, 2021 shows the welding workshop of Jiangling Group Electric Vehicle under Jiangling Motors Group Co., Ltd., in east China's Jiangxi Province. (Jiangling Motors Group/Handout via Xinhua)

China's new energy vehicle (NEV) brands sprung up over the past two years. And the export of NEVs also witnessed a massive upsurge, including those into the European market. Recently, platforms offering China-Europe freight train services launched new trains for the export of NEVs, which is now an increasingly important channel to lead China-made NEVs onto a fast track of international development.

-- Unimpeded transportation channel

A slew of tailor-made China-Europe freight trains for NEVs have been registered since September this year. 

On September 29, a Chang'an China-Europe freight train loaded with smart #1left Xi'an International Port Station. It was the first train since the opening of the China-Europe freight train services to transport NEVs made in Xi'an to Europe. On October 15, the train arrived in Duisburg of Germany. On October 24, the first smart #1 cars completed all customs clearance procedures and waited to be delivered.

On October 20, a China-Europe freight train carrying Nio cars departed from Chengdu International Railway Port, which will leave China through Horgos Port and finally reach Hamburg, Germany about 15 days later. It was the first time for China-made NEVs to be exported to Europe by a China-Europe freight train from Chengdu.

On October 24, a Zhongyu China-Europe freight train fully loaded with NEVs left CR Intermodal Zhengzhou Terminalfor Minsk of Belarus via Alataw Pass Port. It was the first special Zhongyu China-Europe freight train used to transport NEVs to Europe, and the vehicles on the train were from Hongqi, XPeng, Voyah, and other Chinese NEV brands.

With the improving technologies and the national support for the NEV industry, China gets a head start in this sector. Besides, NEVs are competitive in cost performance and environmental protection, which further facilitate Chinese brands to "take root" in overseas markets and boost the rising of the export of China-made vehicles.

-- Faster, safer way with higher efficiency for NEVs exports

According to Chen Shihua, deputy secretary general of the China Association of Automobile Manufacturers, nearly 10 Chinese automobile enterprises are exporting NEVs to Europe, and China-made NEVs account for 10 percent of total NEV sales in Europe.

"Compared with traditional maritime transport, China-Europe freight train services are safer and more stable, and have greater advantages in the import/export of high value-added and time-sensitive goods such as NEVs," said Yi Mingxing, business manager of Chongqing Xingou Customs Declaration Service Co., Ltd. 

He added that Yuzhou Customs had held several symposiums to interpret relevant policies and encourage automobile enterprises to transport and export NEVs by China-Europe freight trains from Chongqing. 

"Taking into account the logistics cost, in-transit time, and other factors, the overall export cost can be saved by eight to 20 percent per vehicle," he said.

"Smart is planning to develop in China and Europe, the two main markets of commercial vehicles. The Chang'an China-Europe freight train transported the brand-new smart #1 to Europe, offering a convenient and efficient international logistics channel for us to expand the European market at a faster pace," said Tao Peng, a company official with Chang'an Automobile, who is optimistic about the future of transporting NEVs by China-Europe freight trains.

-- Promising future expected for NEVs overseas sales

S&P Global Mobility said in a report that Europe's energy crisis might witness 40 percent reduction of its car production, or reduction of more than 1 million vehicles, per quarter through the end of 2023. 

Thanks to strong support of China-Europe freight train service, the underproduction of cars in Europe is likely to become great opportunities for China's NEVs to enter the European market. 

"We will establish headquarters in Europe and North America in due course, to hold a place in all main automobile markets across the world and introduce our high-quality and futuristic automobile products into the European and North American automobile markets", Zhu Huarong, chairman of Chang'an Automobile, said. 

BYD also made the similar plan that it would further develop the French and British markets by the end of this year to provide high-quality new energy passenger vehicles and supporting services for local consumers.

CITIC Securities expects the overseas sales volume of China's automobile enterprises to reach 3 million and 5.5 million in 2025 and 2030 respectively, and the sales volume contributed by leading self-owned brands and emerging enterprises in the overseas market will reach 25-40 percent in 2030.