Chinese carmakers are busy exploring overseas markets, but they still have a long way to go before becoming "world-class" companies, according to a report from consulting firm Roland Berger.
Statistics from the China Association of Automobile Manufacturers show that China shipped 5.85 million units out of the country in 2024, retaining its position as the world's largest auto exporter for the second year running.
Of them, Chery Automobile exported 1.14 million units in 2024, taking the lead among Chinese automakers, followed by SAIC Motor with 929,000 units.
Changan Automobile and Geely Auto reported export volumes of 536,000 and 532,000 units, respectively.
Meanwhile, BYD achieved exports of 433,000 units in the same year. But a year-on-year increase of 71.8 percent made it the fastest-growing Chinese automaker in terms of overseas sales.
BYD Chairman Wang Chuanfu said the company aims to achieve 1 million overseas sales by 2025, targeting exponential growth over the next three years.
To support this ambition, BYD is investing heavily in overseas production. In July 2024, the company announced a $1 billion investment in Turkiye to build a factory with an annual capacity of 150,000 units, scheduled to begin operations in 2026.
Additionally, the company is establishing a presence across Southeast Asia, Central Asia, Central America, South America and Europe.
Other major automakers such as Chery and SAIC are expanding their global manufacturing networks.
Roland Berger estimates in its report that over half of Chinese carmakers' vehicles sold overseas by 2030 will be produced overseas.
But becoming a global company requires more than foreign production, said Roland Berger in its report. It identified a list of significant hurdles that Chinese automakers must overcome in their globalization efforts.
Currently, many Chinese companies lack comprehensive value chain coverage in their overseas operations, including research and development, manufacturing, logistics, and after-sales support.
Their sales models remain underdeveloped, with excessive reliance on a limited number of distributors, insufficient professionalism in channel management and terminal sales, and inadequate service systems.
Localization processes are progressing slowly, while production and supply chain capacities often fail to meet market demands.
The report also highlights that Chinese automakers' brand strategies often struggle to resonate with international consumers.
Many companies focus their brand image and value propositions on Chinese audiences, making it difficult to meet the preferences and expectations of overseas markets, said the report.
As the global automotive industry transitions from being product-centric to user-centric, relying solely on "data accumulation" and "feature competition" is no longer enough to maintain a competitive edge, it said.
Automakers need to develop insights into user needs and optimize vehicle design and flexible configurations to deliver differentiated user experiences.
Furthermore, brand marketing strategies must transcend traditional "premium positioning" to convey values beyond the product itself, including aesthetic, experiential, social, and cultural dimensions.
Establishing emotional connections with consumers will be critical to enhancing brand loyalty and boosting price premium capabilities, the report said.
"As competition intensifies in overseas markets, Chinese automakers and component suppliers must shift from an export-focused mindset to one of internationalized operations," said Ron Zheng, senior partner of Roland Berger.
"They should prioritize breaking into high-value markets instead of merely covering low-barrier regions while seizing opportunities amid global political and economic changes to strengthen their international competitiveness," said Zheng, who is also Asia head of automotive practice at Roland Berger.
