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German carmakers upbeat on China market, green push

Updated: May 16, 2024 China Daily Print
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SHENYANG — A BMW i5 electric car rolled off the assembly line on May 8 in Northeast China's Shenyang, capital of Liaoning province, marking the 6 millionth car produced by BMW Group's joint venture in China, BMW Brilliance Automotive.

This came just 15 months after the JV's 5 millionth car was produced.

About half a month ago, the German auto giant announced an additional investment of 20 billion yuan ($2.8 billion) in its production base in Shenyang.

The investment will be used for upgrading as well as technological innovation at the Dadong plant of BBA, which is expected to lay the foundation for the localized manufacturing of BMW's new generation of models, known as Neue Klasse, in 2026.

Cementing their market, research and future endeavors in China, an increasing number of overseas-funded enterprises, such as BMW Group, are optimistic about the Chinese new energy vehicle sector, injecting continuous investments and seizing more opportunities in China.

Volkswagen Group has established its largest research and development center outside of Germany in China, focusing on the development of intelligent connected vehicles.

The success of overseas-funded enterprises in China is inseparable from the country's super-large-scale market. China's NEV market is far from saturated and will continue to maintain a faster and stronger growth momentum than Europe and the United States, said Ferdinand Dudenhoeffer, director of the Center Automotive Research Institute in Bochum, Germany.

In 2023, China's automobile production and sales had reached 30.2 million and 30.1 million vehicles, respectively, representing year-on-year increases of 11.6 percent and 12 percent. Among these, the production and sales of NEVs reached 9.6 million and 9.5 million units, respectively, up 35.8 percent and 37.9 percent year-on-year.

China's automobile market has ranked first globally in terms of both production and sales for 15 consecutive years, with the production and sales of NEVs ranking first globally for nine successive years. China also exported a record 4.9 million vehicles in 2023, a year-on-year increase of 57.9 percent.

Given these achievements, the Chinese market clearly shines brightly as a beacon of opportunity on the global stage.

In 2023, BMW managed to deliver over 375,000 electric vehicles worldwide, a year-on-year increase of 74.2 percent, including approximately 100,000 EVs delivered to China. Volkswagen Group delivered approximately 191,800 EVs to the Chinese market in 2023, a year-on-year increase of 23.2 percent.

Currently, China's manufacturing industry is accelerating its transformation and upgrading towards high-end, intelligent and green development, which is creating more development opportunities and attracting foreign investment in high-tech fields.

For many foreign automobile companies, China is not only the world's largest single market, but also an important source of innovation. For example, BMW Group has established its largest research and digitalization system outside of Germany in China.

Likewise, Mercedes-Benz has also made strides with innovation in China. In 2023, Mercedes-Benz's sales in China amounted to 765,000 vehicles, accounting for 29.6 percent of Mercedes-Benz's global sales, and once again making China Mercedes-Benz's largest regional market.

Notably, the first batch of Mercedes-Benz supercharging stations is already in use in China. As of now, Mercedes-Benz's public charging services cover more than 360 cities in the country.

The Chinese market will continue to grow and play a leading role in industry innovation, said Ola Kaellenius, chairman of the board of management of Mercedes-Benz Group, who noted that China is not only the world's largest NEV market, but also its innovation center, featuring leading companies and a mature new energy industry supply chain.

The growth and rise of Chinese domestic car manufacturers means that competition in the automotive market continues to intensify. China's commitment to achieving carbon peaking before 2030 and carbon neutrality before 2060 also means that more and more overseas-funded carmakers in the country are focusing their attention on the fields of intelligent mobility and new energy vehicles.

Located in Changchun, capital of Jilin province, Audi FAW NEV Co Ltd is Audi's first production base in China dedicated to manufacturing EV models.

With an investment planned to exceed 30 billion yuan, the company is accelerating the construction of this NEV project, aiming for production by the end of 2024 and boasting an annual capacity of over 150,000 vehicles.

Data released by the Ministry of Commerce showed that in the first quarter of 2024, the number of newly established foreign-invested enterprises nationwide had reached 12,000, a year-on-year increase of 20.7 percent.

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