In fact, over the years, China's industrial transformation and upgrading have made significant progress, especially in the automotive industry. The strength of automobile manufacturing is an important reflection of a country's industrial and manufacturing capabilities. Countries that are powerhouses in the automotive sector are often industrial powerhouses, and China is striving to catch up.

Chinese Automobile Exports Rank First in the World

The breakthrough for the transformation of China's automotive industry is none other than new energy vehicles (NEVs). This time, China has indeed seized the opportunity of new energy and is catching up with the Western century-old automotive powerhouses through "changing lanes to overtake," significantly narrowing the gap.

At present, China's technology in the field of new energy vehicles has entered the first tier globally. Even powerful brands like Mercedes-Benz, BMW, and Audi need to cooperate with Chinese car companies in the new energy field, a true turn of the tide.

Nowadays, domestic brands have already captured "half the market" in China's automobile market. Joint venture car companies are no longer the hot cakes they once were, and even the once dominant German and Japanese brands have to lower their once-noble heads to offer price reductions and promotions, as the sales of domestic new energy vehicles are simply too strong.

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On the other hand, China's automobile exports have also surpassed Japan for the first time, ranking first in the world.

According to data released by customs, in the first half of this year, China's automobile exports reached 2.34 million units, with an increase of over 70%, while Japan's automobile exports reached 2.02 million units during the same period. This means that China has surpassed Japan to become the world's largest automobile exporter.

Of course, the main force of China's automobile exports is domestic car companies. Among the top ten whole vehicle exports, nine are domestic brands, such as SAIC Group and Chery Group, which have always been the two largest automobile exporters in China.

The Birth of China's Largest Automobile Group

In the domestic automobile market, the era of joint venture dominance is becoming a thing of the past. BYD has surpassed Volkswagen and Toyota to become the car company with the highest domestic sales.In the first half of this year, BYD's sales volume reached 1.15 million units, with 230,000 units sold in June alone. Both the monthly sales and the overall sales for the first half of the year have made BYD the sales champion in the domestic automotive market.

Furthermore, looking at the global new energy vehicle industry, BYD has significantly outpaced Tesla. In the first half of the year, BYD sold 1.15 million units, while Tesla sold only 294,000 units, which is less than one-third of BYD's sales.

Undoubtedly, BYD has become the largest automotive group in China. The sales figures have proven everything, and the capital market's response is even more direct. In the first half of the year, BYD's market value still surpassed that of Volkswagen in Germany, ranking fourth globally, after Tesla, Toyota, and Porsche.

With the rapid growth in sales, BYD's performance has also been very impressive. For the first time, BYD's net profit for the first half of the year exceeded 10 billion yuan, and the annual profit is expected to reach between 20 and 30 billion yuan. It is important to note that BYD's net profit last year was 16.6 billion yuan, indicating a rapid increase in profits.

Chinese automotive industry needs to address its weaknesses

Although the Chinese automotive industry has made tremendous progress, this is not the time to relax. There are still weaknesses that need to be addressed, with continuous improvement and progress.

Firstly, there is a need for significant expansion in overseas markets. Currently, domestic automotive companies, including new energy vehicles, mainly focus on domestic sales. For Chinese cars to truly become strong, they must go global and be sold worldwide.

As the domestic sales leader, BYD sold 81,000 units in overseas markets in the first half of the year, ranking ninth in whole vehicle exports. Although domestic automotive exports are still dominated by fuel vehicles, the export growth rate of new energy vehicles is very fast, indicating that BYD has a huge room for improvement in overseas markets.

Secondly, it is necessary to improve corporate profitability and the level of employee welfare benefits. Although BYD has the highest sales, its net profit is far behind Tesla, and many new energy vehicle companies are still operating at a loss. How to turn losses into profits is a question that needs serious consideration.

At the same time, as corporate profitability increases, it is important to continuously improve employee compensation levels and welfare benefits, raise the status of workers, and care for employees. This is an area where most domestic companies need to improve.