Guangdong Automobile Export: QTY Up & Price Down in Aug 2017

According to China Customs statistics, in January-August 2017, Guangdong Province exported a total of 22,000 automobiles, an increase of 84.6% year-on-year (YOY); worth CNY 2.92 billion, up 1.1% YOY; average export price at 132,000 yuan per auto, down 45.2% YOY. In August alone, the export quantity was 2,663 autos, up 1.7 times YOY; worth 370 million yuan, up 37.6% YOY; average export price at 138,000 yuan each, down 49.6% YOY.

Export Characteristics in August Only:

(1) Export quantity continued to increase with average prices remaining low.

Since October last year, the monthly export quantity from Guangdong has been increased for 11 consecutive months, especially June-August this year with big growth; the monthly export prices dropped YOY continuously from this February at 30% and more, June price to the lowest 73,000 yuan/auto.

Chart: Guangdong Automobile Export Trend Monthly Since 2016

(2) More than half exported by processing trade.

In August, the export of 1526 autos were by processing trade, an increase of 2.1 times YOY, accounting for 57.3% of the total export; and 1074 autos by ordinary trade, up 1.4 times YOY.

(3) Mexico was the major export market, less exports to ASEAN and India.

In August, Guangdong exported 1,474 autos to Mexico, accounting for 55.4%; 578 autos to Iran, up 11 times; 70 autos to Saudi Arabia, up 69 times; 45 autos to the EU, up 87.5%; 29 autos to ASEAN, down 83.8%; only 1 to India, a sharp decrease of 99.5%.

(4) Sedan cars were the largest export.

In August, the exported sedans totaled 1,782, up 4.1 times, accounting for 66.9%; minibuses totaled 653, up 8.9 times; trucks totaled 67, up 32.5 times.

Cause of the Export Growth:

Guangdong-based automakers tried hard to open up overseas markets, especially Mexico and Iran.

Export Considerations:

(1) Many countries have the plan to cease the sale of fuel-driven vehicles, while developing new-energy vehicles. In the first 7 months of this year, global sales of electric vehicles increased by 43% YOY, market share more than 1%, Tesla ranking No.1 and BYD No.3. The new-energy vehicles will be the great opportunity for Chinese automakers to make great progress.

(2) China-made buses are exported on the rise, but short of brand recognition abroad.