China's Auto and Shipbuilding Sectors Show Strong Growth
Advertisements
In recent months, the launch of the Haitong Taicang Automotive Terminal marks a significant development in China’s automotive export infrastructureAccording to MrWu Bing, Vice President of SAIC Motor Corporation, this terminal, developed in collaboration with Shanghai Port Group and Jiangsu Port Group, will streamline the automotive supply chain, industrial chain, and innovation chain in the Yangtze River Delta regionThis strategic initiative is expected to enhance the operational capacity, optimize logistics costs, and bolster the international competitiveness of domestic automobile brands.
Automobile exports have emerged as a bright spot in the modern Chinese automotive industryPorts are critical nodes in the global supply chain, serving as gateways for vehicles entering international marketsAs one of the largest roll-on/roll-off (Ro-Ro) terminals in the Yangtze River basin, the Haitong Taicang terminal has an impressive annual throughput capacity, accommodating 1.3 million vehicles
This facility is anticipated to become an instrumental logistics hub, providing long-distance logistics services tailored to clients like SAIC Motor Group, and facilitating a new avenue for Chinese auto brands to traverse international waters.
SAIC Motor is not just focused on producing vehicles, but has also taken significant strides in establishing a comprehensive automotive ecosystem overseasAs China’s first automotive enterprise to systematically and strategically expand abroad, SAIC has successfully built a full value chain of automotive industry presence which includes innovation and research centers, manufacturing bases, marketing centers, supply chain hubs, and financial servicesThis solid groundwork underpins the sustainable and high-quality development of its international business operations.
As of now, SAIC's products and services span over 100 countries and regions globally, with its MG brand standing out as a notable player in international markets
- Volatility Grips Global Financial Markets
- Positive Outlook for Japan's Stock Market in 2024
- Volkswagen May Close Some Factories in Germany
- Asian Markets Boosted by Holiday Cheer!
- Impact of Interest Rate Differentials on the Forex Market
The MG brand has successfully penetrated mainstream markets in numerous countries including the UK, France, Germany, Italy, Spain, Sweden, Australia, and New ZealandThis growth highlights the increasing global recognition and acceptance of Chinese automotive brands.
The push towards electric and intelligent vehicles has accelerated the international expansion of “Made in China” automobilesThe China Association of Automobile Manufacturers reported that from January to November 2024, China has exported 5.345 million vehicles, reflecting a remarkable year-on-year growth of 21.2%. This growth is closely linked to the operational success achieved by SAIC in international markets, with their overseas sales reaching approximately 937,000 vehicles during the same period, solidifying their stance as industry leaders.
Recent accolades achieved by SAIC’s MG brand underline this momentum
The new MG HS model recently aced safety tests conducted by Euro NCAP in Europe and ANCAP in Australia, receiving five-star ratingsFurthermore, it has also made its way onto the UK’s monthly best-selling car listIn Thailand, the MG3 HEV has triumphed against Japanese competitors, winning the prestigious 2024 Thailand Car of the Year awardThe new MG3 family has continued to see robust global sales, cementing a monthly sales figure exceeding 10,000 units.
The European market remains a focal point for SAIC’s export strategyOver the first eleven months, MG’s cumulative sales in Europe surpassed 220,000 units while navigating challenges posed by the European Union’s anti-subsidy investigationsThis perseverance signifies a noteworthy positive growth trend that could set a new record by year-end.
Looking forward, analysts predict that if trade conditions in Europe tighten, SAIC’s existing overseas production capacity of 188,000 vehicles may see an expansion
The Group intends to bolster its global production capabilities, further cementing its international strategy.
One of the hidden champions within SAIC’s supply chain ecosystem is Anji Logistics, a company that has evolved into the world's largest automotive logistics providerWith operations spanning nearly 600 cities in China and over 100 countries around the globe, Anji Logistics boasts an annual transportation capacity of 10 million vehiclesThe establishment of a logistics network along China's coastline and Yangtze River, including significant port facilities, showcases Anji Logistics’ commitment to maintaining a competitive edge in automotive logistics.
The Haitong terminal stands as a beacon within the industryAs one of the largest Ro-Ro terminals in the world, it is forecasted to reach an annual throughput of 3.5 million vehicles in 2024. The Haitong Taicang terminal itself covers an impressive area of 960,000 square meters and features 708 meters of quay space, allowing it to accommodate two 70,000-ton and one 3,000-ton Ro-Ro vessels simultaneously, with storage capacity for 32,000 vehicles
This robust infrastructure is complemented by five automobile service centers providing an integrated suite of services like storage, inspection, maintenance, and charging for vehicles.
Further reflecting the urgency and importance of enhancing maritime logistics capabilities, Chinese car manufacturers, including major players like SAIC, BYD, and Chery, have invested heavily in building their own shipping fleets to counter earlier constraints in global Ro-Ro shipping capacities.
SAIC has formed a formidable "ocean-going fleet" through Anji Logistics, which possesses China’s largest self-operated fleet consisting of 32 various types of automotive vessels, including 11 riverboats, 9 domestic trade ships, and 12 international vesselsThe fleet has established eight international shipping routes to various markets including Southeast Asia, Mexico, South America, Europe, and Australia/New Zealand
Beyond servicing its affiliated brands, Anji Logistics extends its logistics support to numerous other Chinese car manufacturers such as Dongfeng, Yutong, and Great Wall.
Earlier this year, SAIC launched its first dedicated ocean-going vehicle transport ship, built by China State Shipbuilding Corporation and named the "SAIC Anji Shen Cheng." This 200-meter-long ship has seating for 7,600 vehicles, emissions reduction capabilities of up to 30% thanks to its LNG dual-fuel technologyIn July, the second ship of this series, "SAIC Anji Jin Cheng," was delivered, following a similar construction profile and environmental focusBoth ships represent the cutting edge of clean energy Ro-Ro transportation, and are set to play pivotal roles in SAIC’s European shipping routes, directly addressing existing export capacity constraints while accelerating the journey of Chinese brands into global markets.
Notably, SAIC announced that the China COSCO Shipping Group and Shanghai Port Group have agreed to invest in Anji Logistics