Chinese New Energy Vehicles in Central Asian

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In recent years, Chinese car companies have been committed to developing new energy vehicles represented by electric energy to help Central Asian countries transition to a low-carbon economy. Temilkan Nadrov, representative of Green Car Company, the Kyrgyz partner of China Dongfeng Liuzhou Automobile Co., Ltd., said that electric vehicles represent the future development trend. The company has conducted a survey on the Kyrgyz market demand, and many people have expressed their willingness to switch to electric vehicles.

In 2023, China’s new energy vehicle exports to Central Asia will show a significant growth trend. China’s automobile exports to Central Asian countries reached US$500 million, a year-on-year increase of 121%. Among them, new energy vehicles are especially favoured by people in Central Asia.

Take Uzbekistan as an example. Uzbekistan is undergoing a transformation towards electric vehicles. The cooperation between BYD and Uzbek car companies is eye-catching. In January this year, Uzbekistan Automotive Industry Company and BYD officially registered a joint venture in Uzbekistan to produce and sell BYD’s electric and hybrid new energy vehicles locally.

This cooperation will help popularize and promote new energy vehicles in Uzbekistan, promote green and low-carbon transformation, and further promote the development of the new energy vehicle market in Central Asia.

In order to meet the growing demand in Central Asia, China Railway Xi’an Bureau Group Co., Ltd. will operate a total of 33 special automobile export trains in 2023, which has achieved normal transportation. Central Asian consumers can purchase Chinese new energy vehicles faster and more conveniently.

In summary, we have summarized several reasons why Chinese new energy vehicles can sell well in Central Asia.

The Chinese community plays a leading role

The Chinese groups in Central Asia are generally engaged in business, most of which are directly related to import and export trade, and have certain purchasing power. They have a strong demand for domestic new energy electric vehicles and use their resources and financial resources to purchase favoured domestic electric vehicles.

Cars are not difficult for them. First, they enjoy a driving experience that is different from traditional fuel vehicles. Second, they increase their differentiation and influence among local groups. When these electric vehicles drive on the roads of Central Asian countries, potential consumers will pay attention and look for relevant purchasing channels and resources.

At this time, traditional car dealers will be regarded as industry insiders and receive a lot of consultations, and the Chinese group will also affect the people around them. This driving role has greatly exceeded the brand. Manufacturer’s promotion efforts and store marketing.

New energy vehicle production

Central Asia has insufficient production capacity for traditional fuel vehicles

Uzbekistan imported 2,278 new energy vehicles from China from January to April 2023. There are two main reasons. On the one hand, the local production capacity of fuel vehicles is insufficient. The production cycle exceeds six months. A large number of spare parts need to be purchased, transported and cleared from abroad. The supply chain is not smooth due to the global epidemic. The second is the country’s presidential announcement. The order reduces tariffs on imported fuel vehicles by 50% and implements tariff reduction and exemption policies on imported electric vehicles. Therefore, this is the main reason why Chinese electric vehicles are favoured by consumers in the country.

The product structure of Central Asia automobile dealers has been upgraded and transformed

There are relatively few electric vehicle dealers operating on a large scale in Central Asia. Most of them are traditional fuel vehicle dealers or directly-operated stores. When some electric vehicles are driving on the road, these dealers will be consulted as soon as possible. There are related products for sale. At this time, whether it is future development or the supplement and survival of the existing product structure, operators need to think about whether to choose to change the product structure in line with market demand, introduce electric vehicle products, or stick to the original product strategy.

Faced with such a choice, there are still some operators in the market who are at the forefront. Through the local promotion of these car dealers, some Chinese electric vehicle brands and even certain models have been quickly accepted by the market and become popular. For example, this is the case with the BYD Song PLUS model provided by Guangcaicar to customers in Uzbekistan. The customer had already selected and bought the car in full before it arrived at the Tashkent 4S store.

The comprehensive competitiveness of domestic new energy electric vehicles has been enhanced

Taking advantage of China’s large and comprehensive automobile industry chain, domestic new energy electric vehicles are superior to traditional fuel vehicles in terms of design, manufacturing and use. The same is true for Central Asian consumers. The competitiveness is not only reflected in terms of electric vehicle products.

It lies in the strength of a country, the strength of a country’s industrial system and management system, and it is also the result of the game between new electric vehicle brands and traditional automobile brands. I believe that new domestic energy electric vehicles will bring more products to the market in the future. The competitiveness released to the Central Asian market continues to be exported.

If you want to know more about Chinese cars or new car launches, you can contact Guangcaicar’s sales team.

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15-07-2024
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