Economic Watch: From Shenzhen to Bremen, Sino-German auto cooperation takes new steps-Xinhua

Economic Watch: From Shenzhen to Bremen, Sino-German auto cooperation takes new steps

Source: Xinhua

Editor: huaxia

2024-05-02 14:23:15

SHENZHEN, May 2 (Xinhua) -- A ro-ro ship under the name "BYD EXPLORER NO.1," first of BYD's "shipping fleet" with another seven transport ships under construction, set sail from Shenzhen, south China's Guangdong Province, and arrived at the port of Bremerhaven, Germany, in late February.

More than 3,000 new energy vehicles (NEVs) manufactured by the Chinese NEV giant were unloaded.

BYD EXPLORER NO.1 is the epitome of the rapid development of China's auto industry and the continuous advancement of globalization in recent years, and it is also a portrayal of the advanced cooperation between China and Germany in automobiles.

For a long time, China has been the world's largest auto market for German auto companies such as Volkswagen, Mercedes-Benz and BMW, as well as an important global production and research and development (R&D) base. In recent years, Chinese cars have developed rapidly with electrification, constantly enriching global supply and expanding cooperation in Sino-German auto industry.

On Aug. 1, 2022, BYD announced a partnership with Hedin Mobility, a leading European dealership group, successfully introducing multiple NEV models into Germany, marking a promising start to localized operations. As of now, BYD has established stores in 23 cities across Germany, where consumers can test drive and purchase vehicles in cities like Frankfurt, Hamburg, and Cologne.

Furthermore, BYD has signed cooperation agreements with SIXT, a leading German car rental company, which will procure at least 100,000 new energy vehicles from BYD in six years. Additionally, BYD inked a global strategic cooperation agreement with Shell to jointly enhance the charging experience for BYD's European users.

According to Motor1.com, an automobile news website in Europe, there was a major change in the European auto market in 2023 as a result of the rise of Chinese auto brands.

On the basis of 23 Chinese car brands, the year 2023 saw another seven new brands enter the European market. Chinese brand cars registered in Europe reached 322,000, an increase of 79 percent, and its market share reached a record 2.6 percent.

A BYD spokesperson said that the company's performance in the German market is steadily improving, receiving positive affirmation from local mainstream media regarding product innovation design, excellent driving performance, and the safety of blade battery technology, along with enthusiastic feedback from consumers.

The European market, including Germany, is nurturing the growth of the Chinese auto industry while the Chinese market continues to provide a critical platform for the globalization of the German auto industry. The bilateral cooperation between the two countries' automotive sectors has entered a new phase.

On April 11, the Volkswagen Group said that it would invest 2.5 billion euros (around 2.68 billion U.S. dollars) to further expand the production and innovation center in the eastern Chinese city of Hefei, reinforcing its local research and development capabilities. They also plan to manufacture two Volkswagen brand models co-developed with Xpeng Motors, with the first model being a mid-size SUV scheduled for production in 2026.

BMW is confident in China's economic prospects and intends to scale up its investment in the country, said BMW Chairman Oliver Zipse in a statement.

For 30 years, BMW has been deeply rooted in China, benefiting from free trade and China's opening-up policy, he said.

Over the past three years, BMW's R&D team in China has tripled in size, now boasting over 3,000 talents in software development, autonomous driving, UI/UX design development, and participating in projects such as the BMW New Generation Models.

Chairman of the board of management of Mercedes-Benz Group Ola Kallenius also expressed his welcome toward China's continued pursuit of high-level opening up and optimism about the potential of the Chinese market.

"We will continue to invest in China, strengthen cooperation with our Chinese partners, promote electrification as well as digital transformation, and continue to contribute to Germany-China economic and trade cooperation," he said.

Sino-German automotive industries have been increasingly complementing each other. Notably, two of the largest shareholders of the Mercedes-Benz Group are Beijing Automotive Group from China, and Li Shufu, Chairman of Zhejiang Geely Holding Group. Geely is also the parent company of Swedish luxury carmaker Volvo.

In addition, the Volkswagen Group has been increasingly relying on large Chinese battery companies like Gotion High-Tech in battery development and manufacturing.

Fu Bingfeng, executive vice president and secretary general of the China Association of Automobile Manufacturers, said that the automobile industry is a typical global industry. With the improvement in China's automobile production standards, Chinese vehicles, in the process of 'going global,' have brought new technologies, low-carbon products, and concepts to international consumers. Concurrently, Chinese automakers establishing factories overseas and configuring supply chains have also contributed to the socioeconomic development of local communities.