China Railway Express Accelerates New Energy Vehicle Exports, Boosting Trade Growth

Published March 6, 2023 · Sino-Euro Railway

China's new energy vehicle (NEV) exports are increasingly moving by rail. In January 2023 alone, China exported 83,000 NEVs, up 48.2% year on year, and the China-Europe Railway Express has become a preferred export channel: dedicated trains can reach Europe in as little as 25 days, saving nearly 20 days compared with conventional transport.

According to the China Association of Automobile Manufacturers, China's auto exports exceeded 3 million units in 2022 and kept their momentum into 2023. In January 2023, passenger car exports reached 250,000 units, up 35.6% year on year, while NEV exports hit 83,000 units, up 48.2%. This rapid growth puts higher demands on vehicle logistics, where exporters can choose between sea, rail and road transport.

Recent shipments show the trend clearly. On February 28, 2023, 110 FAW-Hongqi new energy vehicles boarded a China-Europe Railway Express train to Europe under a "factory-export" model created by Jilin Province to support its automobile industry cluster. Conventional transportation takes about 45 days, while the China-Europe Express can arrive in about 25 days at the fastest, saving nearly 20 days. On March 4, a China-Europe freight train carrying 55 40-foot export containers departed from the Shenyang Puhe logistics base.

For inland manufacturing hubs, rail is often the only practical fast option. Officials in Changsha, Hunan Province, explain that deep-draft car carriers cannot reach inland regions, and trucking is expensive and limited in capacity. Sichuan, Chongqing, Guizhou, Hubei and Jiangxi likewise encourage exporters to use the China-Europe Railway Express for complete vehicles and spare parts, helping inland NEV industry clusters earn foreign exchange.

Professor Cao Erbao, deputy dean of the School of Economics and Trade at Hunan University, notes that NEV exports cover complete vehicles, batteries and other key components: most vehicles depart on dedicated trains while components move in LCL containers for assembly at overseas bases. In markets such as Turkey, Hungary and Germany, Chinese new energy vehicles have won consumers with their cost performance and short delivery windows.