China Charging Pile Products Achieved Overwhelming Success in Overseas

18 April 2024

As new energy vehicles continue to soar overseas, domestic charging piles are also rapidly going global. An industry insider revealed that the first quarter of each year is usually the industry's low season for the charging pile industry, but this year, the charging pile market has been unusually lively, especially as Chinese charging piles are in short supply in the overseas market.

Chinese charging piles are popular overseas

As China's new energy vehicle exports rank first in the world, Chinese charging piles are also beginning to go global. An industry insider told , "2023 will be a year of significant growth for Chinese charging piles going overseas." A charging pile company executive, who wished to remain anonymous, stated that the company's charging pile exports have doubled in recent three years, with 30,000 units exported in 2021, 75,000 in 2022, and 150,000 in 2023.

Why are Chinese charging piles so popular in the overseas market? Firstly, it's due to the surge in overseas market demand.

The vehicle-to-pile ratio is an observation indicator for entering the overseas market. As the global new energy vehicle market explodes, multiple research institutions estimate that the vehicle-to-pile ratio for public charging piles in both Europe and the US is above 15:1, far worse than China's 7.5:1. Meanwhile, the development of charging pile markets in European countries is extremely uneven, and the construction density of charging piles is very low. In this context, the shortage of charging piles continues to increase. According to the International Energy Agency (IEA), it is expected that there will be 5.5 million public fast charging piles and 10 million public slow charging piles globally by 2030, indicating a vast market potential.

Secondly, it's because of the excellent quality of Chinese charging piles.

According to a relevant person in charge of EN+ Technology, the regions with high global demand for new energy vehicles are China, the United States, and Europe. The demand for charging piles grows with the increase of new energy vehicles. Wherever there is a global market for new energy vehicles, there will be a market for charging piles.

Chinese charging piles can stand out for two main reasons. Firstly, they offer high cost-effectiveness. Thanks to China's unique supply chain and resource advantages, Chinese charging pile companies are more cost-effective than overseas brands with comparable product strength. Secondly, Chinese charging pile companies can provide flexible and customizable services. Overseas localization and customization business costs are high. For customers with business ideas, they not only want to sell products but also hope to achieve more of their product needs. Therefore, the rapid response capability of Chinese companies has become one of the advantages of promoting cooperation between the two parties.

Large supply and demand gap overseas, Chinese companies are competing

With sufficient market demand and high profits, the prospects for Chinese charging piles going overseas are quite broad. In the overseas market, car charging piles can be sold like ordinary commodities in supermarkets, shopping malls, and hardware stores. European and American customers are less sensitive to charging pile prices, and the prices of charging piles are relatively high. Overseas charging piles of the same power are several times the price of domestic ones, which can significantly improve the profitability of domestic charging pile manufacturers.

Moreover, the overseas market electricity resources are operated on a market-oriented basis, and charging pile electricity is bundled with household electricity energy packages. In other words, a household's electricity may come from multiple power grids, and electricity can be switched to the lowest electricity price at any time. Especially during the low electricity consumption period, there will be discounted sales or even "negative electricity prices," which facilitates the use of charging piles.

Facing a huge market opportunity, Chinese charging pile companies are scrambling to enter the market, and almost all capable companies are "going global." In recent years, many Chinese charging pile industry chain enterprises, including Teld, Star Charge, Shenghong, Autel, Juhua Technology, and Yingjie Electric, have successively laid out overseas markets.

Industry insiders remind that Chinese charging piles still face policy challenges when going overseas. As a core component of the new energy ecosystem, charging piles must adapt to the policy frameworks and access conditions of various countries during their internationalization. Strict environmental protection standards, technical thresholds, country of origin regulations, and government procurement policies favoring local products in Europe, America, and other places pose potential challenges to Chinese companies expanding overseas in the charging pile sector.

Source : www.chinabuses.org

Editor : Isabella

Views:4783

Tags: Charging Pile

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