Growth rate of 35%! South America has become a new outlet for China's exports, and the profits of these five countries surpass Africa

The growth rate soared by 35%! South America has become a new outlet for China's cars to go to sea. The profits of these five countries are much higher than those of the African market. In recent years, China's car exports have been smooth. First, it seized Southeast Asia, deeply cultivated the Middle East, and then stabilized the Russian market. Now the wind direction has completely shifted to South America. The latest industry data shows that China's automobile sales to the South American market have increased significantly by 35% year-on-year. Sales have been exploding, with orders one after another. Compared with the African market, where popularity is slowly fading and profits are low, several countries in South America have stronger spending power, higher car purchase budgets, and greater space for model premium, truly becoming a golden place for car companies to go abroad with high profits. It's also an overseas market. Why did South America heat up all of a sudden? Which countries are most worthy of deep cultivation? Today's article explains the industry tuyere and profit logic clearly.

Say goodbye to low prices! South America has completely defeated Africa and become the main battlefield for profits at sea

For a long time in the past, many car companies have gathered together to deploy the African market, relying on low-cost fuel vehicles to increase sales. But now, the shortcomings of the African market are becoming more and more obvious: per capita income is relatively low, consumption power is weak, models can only focus on low-end and cheap cars, the after-sales system is imperfect, the payment cycle is long, and sales seem to be OK but the profits are very meager and have long been caught in the red sea of internal circulation. The South American market is ushering in an all-round way, and its advantages are clear:

1. The economic foundation is stronger: the overall national income is much higher than that of Africa, and residents have sufficient budgets to buy cars and are willing to buy mid-range SUVs, family cars, and new energy models;

2. The market demand is very stable: the penetration rate of private cars is high, and the demand for replacing old cars with new ones is particularly strong, and the scale just needed is very large;

3. The profit margin is sufficient: the price of the same model is much higher than that of Africa, and the brand premium and bicycle profit directly create the difference;

4. The traffic conditions are relatively friendly: the road infrastructure is very complete, and the adaptability of family cars and passenger cars is very high;

5. The policy environment is relatively loose: most countries are friendly to trade with China, have appropriate entry thresholds, and have less resistance to sea layout

The ultra-high growth rate of 35% can show that South America is not a short-term heat, but the core growth pole for China cars to go abroad in the next decade.

2. In the top five high-profit South American countries, car companies will give priority to overseas deployment

Brazil

South America's largest automobile consumer market, which must be the core main battlefield. Local car companies have insufficient production capacity and Japanese car pricing is relatively high, which leaves a lot of market space for China brands. Household SUVs, economy cars, and hybrid models are particularly popular here. The market size is relatively large, with large shipments and stable profits. They are the first choice countries to enter South America.

Chile

The business environment is particularly good, the trade process is simple, and the acceptance of foreign models is very high. Local consumers like models with high appearance values and rich and diverse configurations. They just focus on high-priced joint-venture vehicles. The reputation of China's own brands has quickly established here. Bicycle sales profits are relatively high in South America. There is little market competition pressure, making money easy.

Argentina

The rigid demand for automobiles is very strong, but the local automobile industry is relatively weak and relies particularly on imported models. Affected by the local market environment, imported high-quality cars have a large premium space, and mid-range models are particularly popular. As long as the channels are established, sales and profits will increase together, and the potential to sink the market is still very large.

Colombia

With a large population, there is a strong demand for cars in cities, and road conditions can adapt to various household models. Consumers attach great importance to practicality and cost-effectiveness. The sales of domestically produced fuel vehicles and new energy scooters are extremely popular. Logistics and transportation are quite convenient and the distribution efficiency is high. It is especially suitable for small and medium-sized car companies to quickly deploy to seize shares.

Peru

The market is slowly rising, and consumption concepts are mature, so they like high-quality national models. There is little market competition, low threshold for entry, low initial investment costs, and stable returns in the later period. It is especially suitable for brands who want to explore the South American market to try and take root.

3. China's cars can sweep across South America, and their core advantages are clear. 1. Accurate matching of products

Optimize the model for the South American climate and road conditions. It is resistant to high temperatures and has a particularly strong chassis. Family cars, urban SUVs, and light off-road vehicles are covered, which is very in line with local travel habits.

2. The cost performance of domestic cars is much better than that of joint venture cars

Among models of the same class, domestic cars have more high-end configurations, particularly complete smart cockpits, and cheaper prices, which can easily shake the market position of traditional Japanese and Korean models.

3. New energy comes out strongly

Many countries in South America strongly support clean energy travel. With their mature technology and people-friendly prices, domestically produced hybrid and pure electric vehicles quickly seized new energy tracks and seized future market opportunities.

4. The sailing system is becoming more mature

Shipping logistics is very smooth, overseas warehousing is gradually improving, and localized after-sales outlets are constantly being built, completely solving the worries of car owners, and the brand reputation continues to rise!

4. Industry trends: The South American market will continue to explode in the future

As the technology of China's automobile industry continues to upgrade, the quality of fuel vehicles has steadily improved, new energy models have been fully launched, and travel consumption in South American countries is also upgrading. In the next few years, South America's rapid growth trend of more than 35% will continue. Compared with the African market, which is approaching saturation and declining profits, deeply cultivating the five core countries in South America is the right way to stabilize sales and earn high profits. From low-cost sales to high-quality profits, it is time for China cars to officially enter refined profits when they go out to sea. Seize the opportunity of South America to grab the dividends of the next wave of overseas wealth.

end

The sailing track has been shuffled, and the air outlet has been shifted to South America. The profits are much higher than those in Africa! Seize the golden opportunity of 35% growth rate and lay out a high-quality South American market. Domestic cars will surely maintain their leading position in the South American continent and move towards a higher stage in the world.

Source: Digital used car exports

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