Why is the deficit in the import and export of automobiles and components this year?

According to the import and export data provided by the General Administration of Customs on automobile products, the total import and export volume of national automotive products (including auto parts and components) in the first three quarters was US$78.148 billion. Among them, the import value of auto goods was 40.781 billion U.S. dollars, an increase of 90.59% year-on-year; the export value was 37.367 billion U.S. dollars, an increase of 44.94% year-on-year. The trade deficit reached 3.4 billion U.S. dollars and imports were 9% higher than exports. Because auto parts and components are a big part of China's auto products, if we only look at autos, the difference between exports and imports will be even greater.

Since the beginning of this year, China's auto import and export trade has changed the balance of the surplus for many years in one fell swoop. The main reason is that the average price of imported and exported cars has become increasingly different. Taking September as an example, in September, China imported a total of 66,300 vehicles, with an import volume of 2.313 billion U.S. dollars; exported 51,400 vehicles and exported 598 million U.S. dollars. The import volume is only slightly higher than the export volume, while the import amount is more than four times the export value. If one dollar is equal to 6.6 yuan, the average price of cars imported by China in September is 230,300 yuan, while the average price of cars exported is only 76,800 yuan.

Due to the unbalanced development of the world economy, the overseas major auto market has been slow to recover, and the Chinese auto market has become one of the most important strategic markets for multinational companies. Multinational automobile companies are paying more and more attention to the imported car market. They have adjusted their tactics to China and accelerated the pace of strategic adjustment and channel construction of imported cars. Domestic suppliers have also increased their order quantity and began to cover up inventory, forming new market growth space. The scale of imported vehicles has been significantly expanded, and the expansion of market capacity can bring significant scale benefits to multinational companies. In addition, the imported car market can bring rich profits for multinational companies.

As the Chinese consumer's car consumption concept is escalating, the requirements for the quality and performance of the car are also increasing. Some imported vehicles have prominent advantages in the safety and quality of automobiles, which makes consumers' preference for imported cars continue to deepen. The SUVs that meet consumer demand for upgrades, as well as the growing variety of low-to-medium-displacement imported car models, have contributed to the rapid development of the imported car market.

In addition, since the beginning of this year, except for the appreciation of the yen, the US dollar, the euro and the Korean won have depreciated. Among them, the euro devaluation is the largest. From August of last year to August of this year, the exchange rate between the euro and the renminbi fell from 1:9.741 to 1:8.862, depreciating by 9% between a year. In early June of this year, the euro-to-renminbi exchange rate once fell to 1:8.13, a drop of 16% from August last year. This means that when a car with an ex-factory price of 10,000 euros was exported to China last year, the original cost was RMB 97.41 million; the same car was exported to China this year, and the original cost became RMB 88.61 million. The cost has dropped, but the price in China has not dropped. The increase in "profits" has made European car manufacturers more active in exporting cars to China.

On the other hand, for exports, the continuous appreciation of the renminbi has led to increased cost pressures for foreign exchange swaps. For Chinese auto companies that are eager to develop their export business, once the renminbi continues to rise sharply, the more exports, the greater the exchange rate losses. In addition, raw material prices have risen and export advantages have fallen. Lower raw material prices and labor costs are the inherent advantages of China's auto and auto parts exports. Recently, raw materials such as steel, oil, aluminum, and coal have risen worldwide, resulting in a reduction in the profitability of auto and auto parts exports. In 2010, the share of auto exports in China-made cars still hovered around 2.5%. The main market for self-owned car exports is still dominated by underdeveloped countries, which objectively reflects the fact that the comprehensive competitiveness of self-owned brands is not strong. It is difficult to see explosive growth in the short term.