China’s Generating Units Have Increased the Market for Maroon

China Business News Network 2021 China’s generator set enterprises export performance is not bad, for this year’s export situation, what kind of prejudgment do they have? At the beginning of this year, the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products conducted a survey of more than 30 high-quality enterprises in the generator set industry, showing that 41% of the enterprises are more optimistic and are expected to increase exports; 31% of companies expect exports to be the same as in 2021. Under the background of the “double carbon” policy, China’s foreign trade enterprises of generator sets have said that they will pay attention to the research and development of new energy power generation and energy storage products, and will also actively try to use cross-border e-commerce and other channels to open up the market.

 Exports have increased significantly

In 2021, China’s export volume and export value of generating units have achieved substantial growth. According to Chinese customs statistics, in 2021, China’s generator sets exports amounted to 4.36 billion US dollars, an increase of 42.0% year-on-year, and the annual export of units was 9.809 million units, an increase of 21.3% year-on-year. From 2017 to 2020, the changes in China’s generator set exports showed a fluctuating upward trend, and the export value in 2021 increased by 1.29 billion US dollars compared with 2020. “Judging from the number of generator sets exported in the past five years, the growth rate of export volume last year hit a new high in five years, but because the average unit price growth rate of exports in the same period was higher, the increase in export volume was less than the increase in export volume.” Jia Yunan, head of the power energy industry of the Exhibition Department of the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products, said. In recent years, Asia has been the largest market for China’s generator set exports. According to the data, in 2021, China’s generator sets exports to Asia amounted to 1.32 billion US dollars, accounting for 30.26%, ranking first for the second consecutive time. In 2021, the export volume of China’s generating units to Europe accounted for 20.6%, and the share increased significantly compared with 2020, and from the perspective of export quantity, the proportion of China’s power generation units to Europe in 2021 also increased from the proportion 13.9% increased to 16.3% in 2020. “Since the United States and Nigeria are the main destinations for China’s lower unit exports of generator sets equipped with ignited piston internal combustion engines, China’s unit exports to North America and Africa rank ahead of Asia. Jia Yunan said.

At present, generator sets equipped with ignited piston internal combustion engines account for more than 90% of China’s exports of generating sets. As a “star product”, last year, this type of generator set performed well on the top ten export destinations, of which the export volume value to the United States ranked first. In terms of export value, the top three countries in terms of growth rate are Iraq, the United Arab Emirates and Russia. In terms of export volume, the top three countries in terms of growth rate are Iraq, Chile and the United Arab Emirates. In addition, the export situation of other types of compression-ignition generator sets in 2021 is also better than that in 2020, and the export quantity and export amount have increased to varying degrees.

Last year, China’s compression-ignition internal combustion engine generator sets achieved good results in exports to Russia, and the export value achieved more than five times the year-on-year growth. The data shows that in 2021, the export volume of this type of generator set to Russia soared by 513.9% to 415 million US dollars. In addition, in terms of export value, the countries with the second and third largest increases were the United Arab Emirates (61.8%), and Turkey (43.5%), respectively. In terms of export volume, the top three countries in terms of increase are Brazil (81.9%), the United Arab Emirates (79.3%), and Iraq (51.6%)

Innovative channels to develop business

The survey results of the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products show that 62% of enterprises have achieved annual export growth in 2021, and half of them have increased by more than 30%; 18% of enterprises said that their annual exports were basically the same as those of the previous year.

For 2022, China’s foreign trade enterprises in generator sets are full of confidence in the growth of export performance, but also fully prepared to cope with difficult challenges. For example, this year, the lack of human resources, the high cost of shipping caused by the epidemic and poor communication are still the main difficulties faced by enterprises in foreign trade operations, which increase the difficulty of developing business from different levels. Young people are reluctant to enter the factory, and labor costs are rising, resulting in the current difficulties in recruiting workers in factories; In addition, due to the continuous impact of the epidemic, sea freight rates remain high and the shipping schedule is unstable, which also causes rising product costs and delivery difficulties; Since the epidemic, customers have not been able to come in, enterprises have not been able to go out, and communication between the two sides has been difficult.

In the face of many difficulties, China’s generator set export enterprises have faced difficulties and used various channels to open up the international market. At present, international travel is difficult, in the mechanical and electrical chamber of commerce on more than 30 high-quality enterprises in the generator set industry conducted export survey, 65% of the enterprises said: network promotion is the main way to expand overseas markets in the near future, including participation in online exhibitions, e-commerce platform promotion and new media promotion.

Under this situation, the development of cross-border e-commerce has increasingly become a new way for generator set enterprises to explore overseas markets. Due to the characteristics of large weight, large size and expensive freight of the unit products, there were not many enterprises that used cross-border e-commerce platforms to sell in the past, but recently the views of enterprises in the industry on cross-border e-commerce platforms have changed. According to the survey, 34% of enterprises said that they have tried to use cross-border e-commerce platform to develop foreign trade business;  More than half of the remaining 66% of enterprises said they were willing to try to use cross-border e-commerce platforms to develop foreign trade business.

In addition, under the background of the global implementation of the “double carbon” policy, new energy power generation and energy storage products will have an impact on the export of traditional generating units in the future. According to the survey, 35% of the companies surveyed said that they are ready to develop new energy power generation products or enter the energy storage industry.