Chinese charging pile enterprise rely on cost advantages in overseas layout

Chinese charging pile enterprise rely on cost advantages in overseas layout
The data disclosed by China Association of Automobile Manufacturers shows that China’s new energy vehicle exports continue the high growth trend, exporting 499,000 units in the first 10 months of 2022, up 96.7% year-on-year. Along with the acceleration of domestic new energy vehicles to the world, EV charging station manufacturer also start overseas markets, market analysis believes that overseas EV chargers in policy subsidies, new energy vehicle penetration rate increased stimulation or in 2023 into the demand inflection point, Chinese products are expected to cost-effective advantage to quickly open overseas markets.
Since 2021, many European and the United States have released intensively charging pile policies and subsidy plans to promote the rapid development of new energy charging infrastructure construction.
In November 2021, the United States announced that it would invest $7.5 billion in electric vehicle charging infrastructure construction. The investment goal is to build about 500,000 public charging stations across the United States by 2030.
On October 27, 2022, the EU agreed on a plan for “zero CO2 emissions from 2035 for all passenger cars and light commercial vehicles sold in the EU market,” which is equivalent to a ban on gasoline and diesel vehicles from 2035.
Sweden introduced an EV charging station incentive in August 2022, providing up to 50% funding for public and private charging station investments, a maximum subsidy of 10,000 kronor per private charging pile, and 100% funding for fast charging stations that are used exclusively for public purposes.
Iceland plans to provide about $53.272 million in subsidies for public charging piles and other infrastructure between 2020 and 2024; the UK has announced that from June 30, 2022, all new houses in the England region, must be equipped with at least one electric vehicle charging pile.
Guosen Securities Xiong Li said that the current penetration rate of new energy vehicles in Europe and the United States is generally below 30%, and the subsequent sales will still maintain rapid growth. However, the speed of new electrical vehicle charging piles and new electric vehicle sales growth rate is seriously mismatched, contributing to the urgent need for their construction and large space for power generation.
According to the International Energy Agency, the sales of new energy vehicles in Europe and the United States will reach 7.3 million and 3.1 million respectively in 2030. The fast-growing electric vehicle sales will stimulate the explosion of charging pile construction demand in Europe and the United States.
Compared with China, the current charging pile infrastructure construction in Europe and the United States is seriously inadequate, which contains a huge market space. Everbright Securities research report pointed out that as of April 2022, the U.S. car-pile ratio is 21.2:1, the overall car-pile ratio in the European Union is 8.5:1, of which Germany is 20:1, the United Kingdom is 16:1, France is 10:1, the Netherlands is 5:1, all have a large gap with China.
Guosen Securities estimates that the overall market space of charging space in Europe and the United States will total about 73.12 billion yuan in 2025 and grow to 251.51 billion yuan by 2030.
Since the second half of 2022, a number of listed companies involved in the charging pile business have disclosed their overseas business layout.
Daotong Technology said that since the sales of its AC charging pile products began at the end of 2021, and the company has received orders from many countries, such as the United Kingdom, Singapore, France, the Netherlands and Germany, and gradually delivered them.
Linkpower said that the company is optimistic about the development opportunities of overseas charging pile market, and in order to fully grasp the policies, regulations and access thresholds of overseas markets, Linkpower has started to actively carry out relevant certification and testing work before, and has passed many tests or certifications such as TüV, the authoritative testing organization in Europe.
Xiangshan Stock in the acceptance of institutional research, the company has been developing European standard and American standard charging and distribution products, and the company’s European standard charging pile products have been developed, and through overseas teams and channels to gradually invest in overseas markets.
Shenghong revealed in its semi-annual report that the company’s Interstellar AC charging pile passed the European standard certification and became the first batch of Chinese charging pile suppliers to enter the British Petroleum Group.
“The rapid export growth of electric vehicles made in China directly drives domestic charging pile enterprises to accelerate the layout of overseas markets.” said Deng Jun, vice president of Guangdong Wancheng Wanchong Electric Vehicle Operation Co., LTD. According to him, Wancheng Wanchong is also laying out overseas markets and exporting charging pile hosts as a new profit point. At present, the company mainly exports charging pile equipment to Southeast Asia and South America, and is also developing European standard and American standard products.
Among them, the European market is the main export destination of Chinese electric vehicles. According to the General Administration of Customs, in the first half of 2022, the Western European market accounted for 34% of China’s new energy passenger car exports.
In addition to optimistic about the overseas blue ocean market, domestic charging pile enterprises “Go overseas” also lies in the domestic market competition saturation. The charging pile enterprises are faced the difficulty of making profits dilemma, the urgent need to find a new market space to create a profit point.
Since 2016, the explosive development of China’s charging pile industry has attracted all kinds of capitals to compete for layout, including large energy enterprises such as State Grid and Southern Power Grid…traditional car enterprises, and such as SAIC Group and BMW, new energy vehicle enterprises such as Xiaopeng Automobile, Weilai and Tesla, and giants from all walks of life such as Huawei, Ant Financial Services and Ningde Time.
According to the data of Qichacha, there are more than 270,000 charging pile-related enterprises in China, and it is still growing rapidly. In the first half of 2022, 37,200 new enterprises were added, an increase of 55.61% year-on-year.
In the case of increasingly fierce competition, the better profitability of overseas charging pile market is attractive to domestic charging pile enterprises. Huachuang Securities analyst Huang Lin pointed out that the domestic charging pile market competition intensity, low gross margin, The price of DC pile per watt is only in 0.3 to 0.5 yuan, while the price of overseas charging pile per watt is currently 2 to 3 times of the domestic, is still the price blue sea.
GF Securities pointed out that, different from domestic homogeneous competition is intense, overseas certification entry threshold is high, domestic charging pile enterprises rely on the cost advantage, in the overseas market have a large profit space, the product is expected to cost-effective advantage, quickly open the overseas market.