Middle East auto industry enters ‘Chinese’ era

Jane Anderson
Jane Anderson
Middle East auto industry enters 'Chinese' era

In recent years, China’s automobile industry has increasingly stood out in the international arena, especially in the Middle East market, where Chinese automobile companies are expanding at an unprecedented speed and scale, achieving impressive successes. This trend not only reflects the global competitiveness of Chinese automobile brands, but also provides consumers in the Middle East with more choices and quality products.

In fact, Chinese automobile companies’ exploration of the Middle East market began as early as the last century, with Chinese pickup trucks, passenger cars and other models enjoying great success in the local market for the era of thermal engine vehicles. These successful early attempts laid a solid foundation for the further development of Chinese automobile companies in the region.

Today, with the acceleration of the global energy transition and the growing determination of Middle Eastern countries to develop the electric vehicle industry, Chinese automobile companies have once again seized the market opportunity. They are adjusting their strategy, intensifying their presence in the Middle East market and launching a series of electric vehicles adapted to local needs.

According to the latest statistics, in the first half of 2024, Chinese passenger car exports to the Middle East region reached an impressive 420,000 units, an increase of 46.2% year-on-year. This figure is clear evidence of the significant results of Chinese automobile companies in the Middle East market. This region has now overtaken others as the top destination for Chinese auto exports for the first half of the year. It is worth noting that electric vehicles account for 19.6% of China’s exports to the Middle East, highlighting the strong momentum and unique appeal of Chinese electric vehicles in the global market.

Changan Automobile is one of the leading companies in the Chinese automobile sector. As a representative of Chinese brands, Changan was one of the first to expand into the Middle East market. At a launch conference in Riyadh, Saudi Arabia, Changan showcased its three major brands — Changan, Deep Blue and Avita — as well as several electric vehicle models. According to information from the company, by 2030, Changan’s goal is to exceed 1.2 million units of annual sales in overseas markets, with the Middle East market as a key link for achieve this objective. To this end, Changan plans to establish a subsidiary in the Middle East and explore various modes of cooperation such as joint ventures, financial services and logistics.

In addition to Changan, Chinese electric vehicle brands such as BYD, Xpeng Motors and GAC Aion are also competing fiercely in the Middle East market. They are intensifying their presence by opening stores, organizing launch conferences for new models, introducing local production and services, and thus strengthening their influence and competitiveness in the market. These companies have not only launched a wide range of products in the Middle East market, but also carried out in-depth market research and product development according to the needs of local consumers, ensuring that their vehicles better meet the needs of market requirements.

The success of Chinese automobile companies in the Middle East market is not only reflected in the rapid growth of sales, but also in their ability to win the recognition and trust of local consumers through technological innovation and quality improvement. According to a study by global consulting firm AlixPartners, more than 70% of Saudi consumers are considering purchasing a Chinese electric car. This data clearly demonstrates that the awareness and influence of Chinese automobile brands in the Middle East market have reached unprecedented levels.

In short, the success of Chinese automobile companies in the Middle East market and their notable achievements are a vivid reflection of the continuous improvement of the global competitiveness of Chinese brands. In the future, with the continued development of China’s automobile industry and the constant developments of the Middle East market, Chinese enterprises will continue to write a new legend in this market.

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