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The market for the China automotive logistics market is estimated to grow at a CAGR rate of 5% during the forecast period.
The COVID-19 pandemic has brought significant changes in the automotive industry in China. Preliminary data from the China Passenger Car Association (CPCA) finds that passenger car sales dipped 80% since february 2020. Production is resuming but at a slower rate due to logistical problems.
In the wake of the COVID-19 pandemic, the Chinese government has taken steps to bounce back the automobile consumption. These steps include postponing the implementation of the China Six Emission Standard to January 2021, providing fiscal and taxation support, speeding up the elimination of obsolete diesel trucks, and optimizing secondhand vehicle trading channels.
China continues to be the world’s largest vehicle market by both annual sales and manufacturing output, with domestic production expected to reach 35 million vehicles by 2025. Based on data from the Ministry of Industry and Information Technology, over 25 million vehicles were sold in 2020, including 19.99 million passenger vehicles, down 6.5% from 2019. Commercial vehicle sales reached 5.23 million units, an increase of 20% from 2019. Overall car sales in China had reached about 26.1 million vehicles in 2021.
China's exports are less because of its trade policy. Foreign carmakers are required to form joint ventures with Chinese car manufacturers in order to build cars in China. This policy aims to build the domestic car-making industry and strengthening the in-house automotive logistics sector. China is also looking at being the world’s number one producer, exporter, and user of New Energy Vehicles (NEVs).
Scope of the Report
China Automotive Logistics market covers different segments in the entire supply chain- Transportation, Warehousing, Distribution, and Inventory Management, and Other Services. The automotive logistics industry in the United States also covers the electric vehicles and batteries sector. A complete background analysis of the Chinese automotive logistics market, which includes an assessment and contribution of the sector in the economy, market overview, market size estimation for key segments, key countries, and emerging trends in the market segments, market dynamics, and key component flow statistics are covered in the report. The report also covers the impact of COVID -19 on the market. The China Automotive Logistics Market is segmented by Service (Transportation, Warehousing, Distribution, and Inventory Management, and Other Services), and By Type (Finished Vehicle, Auto Components, and Other Types). The report offers market size and forecasts for The China Automotive Logistics Market in value ( USD Billion ) for all above segments.
|Warehousing, Distribution, and Inventory Management|
Key Market Trends
Chinese Investment in NEVs (New ENergy Vehicles)
In 2021, China exported a total of about 597,100 new energy vehicles, a significant increase of nearly 1.7 times compared to the previous year 2020. In year 2020, about 3.5 million new energy vehicles were sold inside of China.
China's new energy vehicle manufacturing industry has made remarkable progress since 2013. In 2022, China is projected to produce over 13 million electric vehicles, exceeding all other major manufacturers' combined production volume, as per statista. Meanwhile, Chinese carmakers are seen as frontrunners in electric car sales as well. Chinese automotive company BYD and the SAIC-GM-Wuling joint venture, ranked second and third in terms of plug-in electric vehicle sales globally, next to market leader Tesla.
China is investing in NEVs and growth in China and the APAC region offers good opportunities for the shipping and logistics companies. The company transports batteries from China to Europe for leading OEMs and suppliers and provides electric-specific compound services in different markets. Additionally, GEFCO and its JV partners have worked with Chinese EV brands, such as BYD. China is aiming to become the world’s leading exporter of vehicles, it already leads in the NEV market and its dominance of the major material mining sources in the world will help support this vision.
Due to the saturated market and high access standards, Chinese automotive enterprises contributed only about six percent of all imported vehicles to the EU in 2020. However, in the year 2021, share of Chinese car exports to Europe jumped to 24 percent of total exports, making Europe the second trading partner after Asia. This was due to the strengthened regulations on CO2 emissions from passenger cars and incentives boosting demand for new energy vehicles in Europe and providing an excellent opportunity for Chinese automakers to win more market share.
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Increasing vehicle exports from China
In 2021, China exported around 402,000 commercial vehicles and 1.6 million passenger vehicles, as per statista. This represented a 111 percent increase in exports of passenger cars and a 71 percent increase in exports of commercial vehicles compared to the previous year 2020. Since 2017, China has been the world’s largest car producing country. Nearly 30 percent of the global passenger car production was manufactured in China in 2020, exceeding the overall share of the European Union. First and foremost, car production in China is set to satisfy domestic car demand as only about 7.5 percent of passenger cars manufactured in China were destined for export markets in 2021.
In other national car markets, Chinese car brands enjoy a significant cost advantage over imported cars from international automobile manufacturers. Thus, other developing countries and emerging markets were the main export destinations for Chinese vehicle exports as of 2021. Although exports of Chinese car brands have increased rapidly over the past decade, it is still a long way for China to become a car export powerhouse. Vehicles made in China have not posed a threat to Japanese or European auto makers internationally since Chinese exports are more concentrated in low-end market segments. In 2021, China exported 191,249 vehicles to Chile, making it China's largest export vehicle trading partner. This was followed by Saudi Arabia, to which China exported 132,997 vehicles in that year.
Nevertheless, the automotive export industry in China still has great potential. Driven by the export of new energy cars, China opened up a more extensive market in developed countries. In the first three quarters of 2020, Europe overtook South America to become the second-largest overseas market of China’s automotive export. On the other hand, China grew to be one of the top exporters of vehicle parts.
The Chinese automotive logistics market is highly fragmented and competitive with the presence of many local automotive logistics companies in the country apart from international firms. International players like DHL and Nippon Express compete with the local players like SAIC Anji Logistics and Yusen Logistics. Citing the latest data on worldwide car production from the Organization of Motor Vehicle Manufacturers, Worldometer reports that China produced more than 21.41 million passenger cars and 4.67 million commercial vehicles in 2021. Automobile production and sales With a production volume of about 21 million passenger cars, China ranked first among countries with the largest production of passenger cars.
May 2022 : BLG and Hyundai GLOVIS announced their joint venture. In this joint venture, Hyundai GLOVIS will develop the BLG AutoTerminal Bremerhaven into a European hub for its automobile transports between Asia and Europe. The core of the joint venture is formed by two dedicated berths and a pre-parking area for vehicles.These facilities shorten the transport routes for Hyundai and KIA vehicles as well as for models from other manufacturers which the shipping line also transports. However, the AutoTerminal Bremerhaven remains a universal port open to all shipping companies.
May 2022 : Nippon Express (China) launches new intermodal transport service from China to Europe via the Caspian Sea. Cargo is transported by rail from numerous locations in China to Aktau, Kazakhstan, from there by ship across the Caspian Sea to baku, Azerbaijan, and again by rail from Baku to Istanbul, Turkey, where it is transshipped to EU railways or trucks for delivery to locations throughout Europe by Nippon Express. Nippon Express has also developed a Caspian Sea route for transport from China to various parts of Europe via Kazakhstan to supplement the aforementioned intermodal transport service. This new service can be used as a BCP transport mode for Europe-bound cargo that does not pass through Russia.
Table of Contents
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Market Opportunities
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID - 19 on the market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Finished Vehicle
5.1.2 Auto Component
5.2 By Service
5.2.2 Warehousing, Distribution, and Inventory Management
5.2.3 Other Services
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Overview (Market Concentration Analysis and Major Player)
6.2 Company Profiles
6.2.1 China Ocean Shipping (Group) Company
6.2.2 SAIC Anji Logistics
6.2.3 BLG Logistics
6.2.4 HYCX Group
6.2.5 Yusen Logistics Co. Ltd.
6.2.7 Nippon Express
6.2.9 Neptune International Movers
6.2.10 Apex Group*
7. FUTURE OF THE MARKET
8.1 Macroeconomic Indicators (GDP Distribution by Activity, Transport and Storage Sector-contribution to Economy, etc.)
8.2 Trade Statistics: Imports and Exports
8.3 External Trade Statistics related to Automotive Sector
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Frequently Asked Questions
What is the study period of this market?
The China Automotive Logistics Market market is studied from 2018 - 2027.
What is the growth rate of China Automotive Logistics Market?
The China Automotive Logistics Market is growing at a CAGR of >5% over the next 5 years.
Who are the key players in China Automotive Logistics Market?
China Ocean Shipping (Group) Company, SAIC Anji Logistics, Yusen Logistics Co. Ltd., BLG Logistics, HYCX Group are the major companies operating in China Automotive Logistics Market.