Chinese Automobile Brands in the Middle East
Data from the China Association of Automobile Manufacturers show that in 2022, China's auto exports increased by 54.4% to 3,111,000 units, and China surpassed Germany to become the world's second largest auto exporter. In the first quarter of this year, domestic auto companies increased their exports by 70.6 per cent year-on-year to 994,000 units, surpassing Japan's 954,000 units.
China's auto production and sales have ranked first in the world for 14 consecutive years. Nowadays, with the increasingly fierce competition in the domestic automobile market, more and more Chinese automobile brands choose to accelerate the pace of "going out" and continue to increase overseas business expansion efforts.
Under the background of effective docking of development strategies, the Middle East market has become a major destination for Chinese car companies to go to sea. More and more consumers and dealers in Middle Eastern countries such as Saudi Arabia, the United Arab Emirates and Egypt are choosing Chinese-made cars.
In July 2022, Great Wall Motor Company held a press conference in Riyadh, the capital of Saudi Arabia, to announce the launch of the off-road version of the "Tank 300" in Saudi Arabia. At the same time, the conference ushered in the "milestone" moment of 1 million overseas sales of Great Wall Motors. Shi Qingke, vice president of Great Wall Motor, said, "Export and overseas sales exceeded 1 million units for the first time, both in the Middle East market, which is the best witness of our 25 years of deep involvement in the Middle East market."
The Middle East is the first stop of the Great Wall brand. In 1997, Great Wall Picadere was officially exported to the Middle East. Taking Saudi Arabia as an example, market data show that the compound growth rate of Great Wall Motor in the Saudi market from 2017 to 2022 reached 140%, ranking in the forefront of Chinese brands in Saudi car sales, and the market share of Great Wall SUV and pickup models exceeded 5%. Since its launch in Saudi Arabia in July last year, the "Tank 300" has become the number one selling model in the local hard off-road segment in just 10 months.
Changan Automobile also entered the Middle East market in the 1990s, and Saudi Arabia is Changan's core market in the Middle East at present. "In 2022, Changan's sales in the Saudi market exceeded 35,000 units, an increase of 22% year-on-year." According to Song Shuang, general manager of Changan Automobile International Sales and Service Co., LTD., Changan is now the first Chinese brand to enter the top 10 of the Saudi automotive market.
Geely has grown rapidly in the Middle East in recent years. According to the relevant person in charge of Geely Automobile, Geely reshaped the distribution network in the Middle East in 2019, and after four years, the business covered most countries in the Middle East, and the annual terminal sales increased by nearly 9 times. In 2022, Geely ranked 10th in all-brand sales in the Middle East region, with terminal real sales exceeding 26,000 vehicles, an increase of 68% year-on-year.
According to incomplete statistics, more than 20 Chinese automobile companies have entered China
At present, not only the direct export of finished cars, some Chinese car companies also choose to invest in the Middle East to build factories, to promote the localization of automobile production and the improvement of the local automobile industry chain.
In 2018, the first Chinese-branded car in Algeria rolled off the assembly line at the Shaanxi Automobile Algeria Automobile Assembly Plant in the Industrial Park of Setif Province. It is reported that Shaanxi Automobile Algeria Automobile assembly plant is jointly invested by Algeria Mazouz Group and Shaanxi Automobile.
In 2019, China's SAIC Motor and Egyptian automobile sales enterprise Mansour Group established a joint venture automobile manufacturing company to produce and sell SAIC's own brand MG series models for the Middle East and North Africa markets such as Egypt.
In addition, Chery, Brilliance, BYD and other Chinese car companies have also set up all parts assembly plants in Egypt.