(Yicai Global) Aug. 9 -- The value of China’s auto exports soared 54 percent in the first seven months of 2022 from a year earlier, thanks to a surge in overseas demand for new energy vehicles.

China exported CNY175.7 billion (USD26 billion) worth of autos from January through July, according to new figures from the General Administration of Customs.

First-half NEV exports surged 1.3 times to 202,000 units, accounting for 16.6 percent of the total, data from the China Association of Automobile Manufacturers showed today.

NEVs are a core growth point of China’s auto exports, with many countries, particularly in Europe and the Americas, showing strong demand, Cui Dongshu, secretary-general of the China Passenger Car Association, told Yicai Global.

Europe was the main destination for China-made cars in the first half of this year, mainly because of increasing NEV shipments, per the CPCA data. Some 78,000 units were shipped to Belgium and 45,000 to the United Kingdom.

The market penetration rate for NEVs was 21 percent in Europe as of June, according to data from market research agency Marklines. The corresponding figure for the United States rose in recent months to 7.6 percent.

Chinese NEV makers are stepping up the pace of their entry into the European market. BYD recently said it was setting foot in Germany and Sweden, with the first vehicles scheduled for delivery in the fourth quarter. Nio and other electric car brands have revealed similar plans.

China also exported a great number of cars to South America in the first half of the year, 112,000 to Chile, 94,000 to Mexico, and 39,000 to Peru, the CPCA data showed.

Buyers in many countries had a robust appetite for NEVs as governments stepped up policies to encourage the shift to new energy vehicles, Cui added, noting that it is also cost-effective now to drive NEVs due to surging gasoline prices. China’s exports of the vehicles are likely to further grow, as more countries transition to NEVs, he pointed out.

Auto capacity in Europe and Japan fell because of the global chip shortage, but production among Chinese carmakers greatly increased because they did a good job guaranteeing chip supplies, Cui said.

The rapid increase in China’s NEV shipments overseas was due to a low base number, Li Xuan, a senior tech analyst at Haitong Securities, told Yicai Global, saying “the growth rate will be obvious when the increase is significant.” Exporters will focus on both the high-end and mid-to-low-end market segments, he noted.

Editors: Shi Yi, Futura Costaglione