Recently, DHL published an industry observation article pointing out that strategic partnerships between electric
vehicle manufacturers and international logistics companies such as DHL are crucial to promoting the development
of the global electric vehicle industry.
With the advancement of global carbon reduction and the shift to electric travel, China is leading the development
of global electric vehicles. China's electric vehicle penetration rate ranks first in the world, with one in every four cars
being an electric vehicle. In addition, in 2023, a total of 9.5 million electric vehicle batteries were sold worldwide, of
which China accounted for more than half.
With strong manufacturing and export capabilities, Chinese electric vehicle manufacturers are seizing opportunities to
expand into the global market. In 2023, China exported more than 4 million vehicles, including 1.2 million electric vehicles.
In addition, China continues to strengthen battery production and exports. Last year, China's lithium-ion battery production
increased by 25% year-on-year, with an output value of more than 1.4 trillion yuan and an export value increase of more than
one-third.
Driven by auto giants such as BYD and Tesla, China has become a major exporter of electric vehicles in the world. While
China's electric vehicles are developing rapidly, they are also facing challenges that need to be solved.
One of the main challenges facing the fast-growing Chinese electric vehicle market is the need to establish a wide-ranging
global logistics network. Recently, DHL established the New Energy Vehicle Center of Excellence in Shanghai to provide fully
integrated end-to-end logistics solutions for modular battery transportation, including domestic pickup and certified export
transportation services throughout the country.
With a deep understanding of the logistics of the new energy vehicle industry and a wide-ranging global logistics network,
DHL is able to support the international development of Chinese new energy vehicle companies through high-quality logistics
services.
Promoting the rise of the electric vehicle industry
The global decarbonization process and the Chinese government's policy measures to promote the development of the new
energy vehicle industry have driven the rise of Chinese electric vehicle manufacturers and the growth of local consumer demand.
In 2023, global demand for electric vehicle batteries soared to more than 750 GWh, an increase of 40% over the previous year,
and China's battery manufacturing industry also benefited from it.
On the other hand, breakthroughs in battery technology, especially lithium iron phosphate (LFP) technology, have further driven
the growth of this industry. Chinese companies have been leading the development of lithium iron phosphate battery technology
for many years. The technology is considered safer and more affordable than some other types of electric vehicle battery technologies.
Currently, about 95% of automotive lithium iron phosphate batteries are used in cars made in China.
Complete value chain
The key to China's success as a producer and exporter of electric vehicles is that it has a complete value chain, providing manufacturers
with a full range of resources from raw materials, batteries to digital services.
In terms of battery production alone, China has many necessary resources, such as raw materials such as lithium and graphite, which are
produced domestically. In addition, China also has the world's largest refining capacity for important ingredients such as cobalt and nickel
sulfate. This advantage enables automakers to purchase batteries locally, thereby improving the cost advantage of producing electric
vehicles in China.
Not only that, China has also established a battery manufacturing infrastructure. As a result, China's electric vehicle batteries are more
affordable and in greater supply.
Similarly, China's vast supply chain network also supports the development of the electric vehicle industry. China has close ties with suppliers
in various markets, which ensures a stable supply of resources required for electric vehicle production. For example, in terms of lithium supply,
China imports about two-thirds of its materials from Australia, Africa and Latin America. Chinese companies also make direct investments in
lithium mines in these countries to ensure supply.
The diverse network provides Chinese automakers with greater flexibility to adapt to changes in the global supply chain and maintain
uninterrupted production, and to export when demand is high.
With huge production and export capabilities, Chinese manufacturers are increasingly shipping electric vehicles around the world. It is
predicted that in 2025, China's new energy vehicle production, including electric vehicles, will exceed 36 million units, and exports will
reach 3.5 million units.
Facing new challenges
The rise and development of China's electric vehicle industry is remarkable, but at the same time it also faces challenges.
As Chinese electric vehicle manufacturers become increasingly dominant in the world, some countries and regions have introduced
protectionist policies. For example, the European Commission launched an anti-subsidy investigation on Chinese electric vehicle imports
in October 2023. The US government announced that it will increase import tariffs on Chinese electric vehicles to 100% from August 1, 2024.
This new rule may have a negative impact on electric vehicle sales and weaken the competitiveness of Chinese manufacturers in the US market.
Helping Chinese electric vehicle companies expand overseas markets with strong international logistics services
To further expand overseas markets, global electric vehicle companies need a strong and reliable logistics partner that can promote their
export business, especially in the transportation of dangerous goods such as batteries. In this area, DHL can ensure that battery transportation
complies with relevant global and local dangerous goods regulations.
"Through our global team of experts, we work with customers to design compliant and cost-effective supply chains based on their needs."
said Fathi Tlatli, President of Global Automotive Mobility Business Unit, DHL Customer Solutions and Innovation Department. "For the end
of the transportation process, we also provide storage and sorting solutions, including last-mile delivery in the destination country, to better
support and enhance the end-to-end export process. In addition, with DHL's expertise in customs clearance, we can help customers simplify
import and export processes and reduce the risk of complications at the border."
"As Chinese new energy vehicle manufacturers go abroad, they need a complete ecosystem to support their development. As a logistics
company serving the world, DHL is well versed in the trade policies and customs regulations of various countries. From documents, parts to
raw materials, DHL is fully capable of providing stable and reliable logistics support for domestic cars to expand into this blue ocean market,
further consolidating China's position in the global new energy vehicle field."
Future Development
The booming global electric vehicle industry has brought huge development opportunities to automakers. China has abundant local production
and cooperation resources for the production of electric vehicles and related parts such as batteries.
Electric vehicle manufacturers can take advantage of the trend by understanding market dynamics, adapting to policy changes, recognizing
changes in customer preferences, and seizing the progress of sustainable transportation technology. Strategic partnerships are essential to
take advantage of industry growth dividends and further strengthen the position of companies in the international market.
