The export and assembly mode of new energy vehicle parts has begun a new journey in the industry

Amidst the accelerating transition of the global automotive industry towards new energy, an innovative "loose parts export assembly" (KD model) is emerging as a new weapon for China's new energy vehicle industry to go global, reshaping the global automotive industry chain. Recently, multiple companies have been making frequent moves in this field, achieving significant results and attracting widespread attention from the industry.

Adjacent to the new port area: KD factory landing, creating a "two-way hub" for the industry

The Lingang New Area of Shanghai Pilot Free Trade Zone has made significant progress in industrial layout, with two new energy vehicle KD manufacturing and export factories settling in one after another. Among them, New Asia Technology signed a contract with the Lingang Management Committee in just 60 days after reaching a cooperation intention in Dubai in early March this year, quickly landing the KD manufacturing and export base project for new energy commercial vehicle components.

The so-called KD mode refers to disassembling the entire vehicle into components, exporting them in the form of modular parts to the target market, and then completing the assembly. Taking New Asia Motors as an example, its products are divided into 11 modules including driver's cab unit, chassis unit, battery unit, etc., similar to "car Lego", which is easy to transport and assemble locally. According to the plan, the annual export capacity of the KD base in Lingang can reach 30000 sets of component modules. After completing the whole vehicle assembly in the Middle East, the products will cover the local and global markets.

The Lingang New Area, with its unique advantages, has become an ideal place for the development of KD business. Over 200 new energy vehicle companies and core supporting enterprises have gathered here, building a complete industrial chain from batteries, electric drives to complete vehicles. At the same time, efficient and accessible port logistics, coupled with innovative bonded policies, provide solid support for the KD model. Li Xiangcong, Deputy Director of the High tech Department of the Lingang New Area Management Committee, stated that Lingang's future KD business has a "two-way hub" positioning: on the one hand, it helps Chinese car companies assemble parts and send them overseas; On the other hand, it attracts foreign car companies to choose high-quality component suppliers in Lingang and allocate them to global factories through bonded zones, promoting efficient allocation of global automotive industry chain resources in Lingang.

Jinlu Bus: Ethiopia project put into operation, dual output of production capacity and technology

Xiamen Jinlong Travel Vehicle Co., Ltd. (Jinlu Bus) has also made significant progress in the pure electric vehicle KD project in Ethiopia, achieving mass production and gradually delivering vehicles. This project is the first new energy KD project established by a Chinese bus company in an East African country, and its significance is extraordinary.

Recently, in Addis Ababa, the capital of Ethiopia, the Ethiopian Electric Power Company held a grand delivery ceremony for pure electric buses. The vehicles delivered this time are jointly completed by Jinlu Bus and Ethiopian Beneni Jinde Group, including 5 pure electric light buses and 4 pure electric 12 meter buses. Among them, the 4 pure electric buses are the first new energy buses assembled locally in KD form in Ethiopia, pioneering the local new energy transportation field.

Jiang Yonghui, the overseas sales director of Jinlu Bus, introduced that this order has a huge scale, including 150 pure electric light buses and 100 pure electric 12 meter bus spare parts. This is the first batch of pure electric KD spare parts bus orders in Ethiopia and even the entire African region. At present, all 150 pure electric light buses have been delivered, and the remaining 100 pure electric bus KD parts have also arrived in Ethiopia and are about to complete production and delivery. After these vehicles are put into operation, they will significantly improve the local public transportation situation and help it move towards the era of electrification. By then, the number of Jinlu buses in the Ethiopian market will reach 900, firmly ranking first in the local new energy bus market.

Dongfeng Nissan: Qichen VX6 exported to Myanmar, building a new export model

Dongfeng Nissan has also taken solid steps in the field of exporting and assembling new energy vehicle parts. On May 19th, the Dongfeng Nissan Qichen VX6 SKD export packaging project was officially shipped, with 75 new energy vehicles using a semi assembled model heading to Myanmar. The local factory will then complete the assembly of the entire vehicle and deliver it to the customer.

The project was successfully promoted in less than 50 days from its formal approval to container loading and shipment. Dongfeng Nissan worked together across the entire value chain and successfully overcame many challenges such as production organization, packaging operations, container consolidation plans, and customs declaration filing. To ensure that the vehicles assembled by the Myanmar factory meet the quality standards, Dongfeng Nissan has formed a training team composed of Chinese and Japanese experts to conduct a 20 day professional training for Myanmar personnel. Currently, Myanmar's assembly efficiency and key quality indicator qualification rate have both met the standards. Through cooperation with distributors in Myanmar, Qichen has become one of the 8 SKD approved brands in Myanmar, and is expected to achieve local assembly and sales in the third quarter of this year. The Qichen VX6 SKD export project has built a replicable and sustainable new export model for Dongfeng Nissan.

The KD model has significant advantages in reducing logistics costs, avoiding high vehicle tariffs, and improving product localization penetration rate, and has become an important choice for many car companies to explore overseas markets. With more and more companies joining in, this innovative model is expected to play a greater role in the development process of the global new energy vehicle industry, helping China's new energy vehicle industry occupy a more advantageous position on the international stage and accelerating the global green transportation transformation.