The "going global" trend of electric vehicle charging stations is undoubtedly one of the hottest topics in the new energy vehicle industry today. However, behind the enthusiastic push towards overseas markets, charging station companies have also encountered various obstacles. "Going global" should not just be a slogan, it requires a pioneering spirit and a down-to-earth market expansion strategy. Therefore, for domestic enterprises, it is essential for them to seriously consider how to leverage their own advantages, seize the industry's opportunities, and share the benefits of going global. According to reporters from China Automotive News, many charging station companies have gained some experience in the process of "going global".

01 Going from domestic to foreign markets

  In 2022, China's automobile exports reached 3.32 million vehicles, surpassing Germany and becoming the world's second-largest automobile exporter. According to data compiled by the China Association of Automobile Manufacturers from the General Administration of Customs, China exported approximately 1.07 million vehicles in the first quarter of this year, a year-on-year increase of 58.1%, surpassing Japan's automobile exports during the same period, and rising to become the world's largest automobile exporter.

In the same year, China's electric vehicle exports reached 679,000 vehicles, a year-on-year increase of 120%, and the export of charging stations continued to be hot. It is understood that currently, charging stations for new energy vehicles have the highest conversion rate among foreign trade goods on China's cross-border e-commerce platforms. In 2022, the demand for overseas charging stations increased by 245%; in March of this year alone, the demand for overseas charging station procurement surged by 218%.

  "Since July 2022, the overseas export of charging stations has gradually exploded. This is related to the background of Europe and the United States enacting multiple policies to catch up with the development of China's new energy vehicle industry," said Su Xin, Chairman and CEO of Easy Charging Network, in an interview with reporters. "There weren't many Chinese charging station companies truly going global before, but now is a very good opportunity." Looking back, thanks to the strong supply chain support in the domestic market, many charging station companies have already started OEM exports during the pandemic.

  Tong Zongqi, Secretary-General of the Charging and Battery Swap Branch of the China Association of Automobile Manufacturers and Deputy Secretary-General of the China Electric Vehicle Charging Infrastructure Promotion Alliance, explained to reporters that there are currently two ways for charging station companies to go global: one is to export through foreign distributors or relevant resource providers; the other is to follow the vehicle manufacturers and provide charging stations as part of the vehicle manufacturers' local service support.

  Charging infrastructure development has become a driving force for the implementation of new energy vehicle strategies in multiple countries and regions worldwide. Charging infrastructure policies introduced by Europe and the United States are clear and proactive, aiming to regain the top position in the competition of the new energy vehicle industry. According to Su Xin, it is expected that the main part of the global new energy vehicle charging infrastructure will be completed within the next 3 to 5 years. During this period, the market will experience rapid growth, followed by stabilization, reaching a reasonable scale of development.

  It is understood that on the Amazon platform, many Chinese companies have already enjoyed the online benefits of "going global", and Chengdu Cons Technology Co., Ltd. (referred to as "Cons") is one of them. Starting its business on the Amazon platform in 2017, Cons has become the first Chinese and one of the top four global charging station companies that comply with the three European electrical standards, using its own brand "Go Abroad". Industry insiders believe that this example is sufficient to demonstrate that Chinese companies can fully rely on their own strength to build global brands in overseas markets through online channels.

  The level of "internal competition" in the domestic charging station market is evident to industry insiders. In view of this, expanding into overseas markets is not only a strategic need to tap into the global "blue ocean" market, but also a way to create another path to success apart from the intense competition in the domestic market. Sun Yuqi, Director of ABB in Shenzhen, has been working in the charging station field for eight years. He has witnessed different types of companies "breaking through" in the domestic market and expanding their "battlefield" overseas.

02 Product, Supply Chain, and Cost Advantages

  What are the advantages of domestic charging station companies going global?

  According to Zhang Sainan, Director of Amazon Global Store, the competitive advantage of China's new energy vehicle industry in the global market primarily comes from the population and talent dividends. "A high-level supply chain and industrial cluster can support Chinese companies in efficiently producing leading products. In the charging station field, we are already far ahead in terms of technology, possessing technological advantages. Coupled with a leading application foundation and a large team of engineers, we can bring physical products to market and provide services." she said.

  In addition to technology and supply chain, cost advantages are also worth mentioning. "Sometimes, European colleagues chat with us and ask about the price of the Chinese standard DC charging stations. Half-jokingly, we reply, just change the currency symbol to RMB. You can see how big the price difference is." Sun Yuqi told reporters that the market price of AC charging stations in the United States is $700 to $2000, while in China, it is 2000 to 3000 yuan.

  "The domestic market is highly competitive, and it is difficult to make money. We can only earn high profits by entering foreign markets." an industry insider, who wished to remain anonymous, revealed to reporters that venturing into overseas markets is a development path for domestic charging station companies to avoid intense internal competition.

  However, the challenges should not be underestimated. Regarding the challenges that charging station companies may encounter when going global, Tong Zongqi believes that geopolitical risks are particularly important and should be given priority consideration by companies.

  Taking a long-term perspective, the move of charging station companies into the global market is a difficult but correct choice. However, at the current stage, many companies have to face the policy and regulatory requirements of countries and regions such as Europe and the United States. For example, in February of this year, the U.S. government proposed that all charging stations subsidized by the country's "Infrastructure Act" must be manufactured locally, with final assembly of any iron or steel charger housing or shell, as well as all manufacturing processes, taking place in the United States, and this requirement took effect immediately. It is reported that starting from July 2024, at least 55% of the charging station's component costs must originate from the United States.

  How can we seize the key "window of opportunity" for the industry's development in the next 3 to 5 years? Su Xin provides a suggestion, which is to have a global perspective from the initial stage. He emphasizes, "The overseas market can provide high-quality comprehensive gross profit, and Chinese charging station companies have manufacturing capabilities and the ability to tap into the global market. Regardless of the timing, we must expand our horizons and look at the whole world."

  It is learned that since 2018, ABB has been focusing on building a local R&D team in the Chinese market to control the cost of the supply chain, and has established a global project team to develop charging station products for the consumer end. In addition, some leading charging station companies that conduct global private charging station businesses on the Amazon platform have considered establishing factories overseas to take advantage of foreign policies.

03 "Localization" Involves Various Aspects

  Nowadays, charging station companies have realized that ensuring quality control and conducting testing and certification of various indicators have become necessary measures for their products to go global. Due to differences in testing and certification requirements in different countries and regions, charging station companies must comply with local laws and regulations when conducting global business.

  According to reports, in terms of certification, charging station products exported to Europe need to obtain CE certification, which costs around 500,000 to 600,000 yuan. The process involves certification application, document preparation, product testing, and submission for review. For exports to the United States, UL certification is required, costing over 1 million yuan and taking approximately 7 months. If it is a utility-side project, additional certification from suppliers is required, and even government approval may be necessary.

  Tong Zongqi mentioned that when expanding global business, it is essential for companies to ensure that the charging station standards align with European or American vehicle models. However, successful compatibility with the corresponding standards and adapted vehicle models does not guarantee a 100% charging success rate. Continuous debugging is required. In other words, for charging station companies, offline operation and debugging in foreign markets present a challenge. Establishing a localized service team can enhance user experience and provide a competitive advantage for the company. Zhang Sainan also stated that for charging station companies to go global, they should seize opportunities in niche markets and create differentiated competitive advantages.

  "Regarding the topic of localization development, certification is not the only concern; data security and privacy protection are also crucial." Jin Hengmei, the Product Director of Eseye Energy (Shanghai) Co., Ltd., emphasized the importance of privacy protection in foreign markets. It is necessary to have a comprehensive understanding of relevant laws and regulations when entering each country or region's market. Even minor issues can pose significant difficulties for future business operations. In addition, besides Europe, which is currently a popular destination for companies, South America and Southeast Asia also have development potential, with the development space in South America possibly being even larger.

  It is understood that charging station companies implementing localization strategies in overseas markets involve various aspects. For example, intelligent charging needs to adapt to the characteristics of foreign power grids, and payment systems should align with local consumer habits. As an example, private charging stations account for 60% to 70% of overseas customers. However, the power capacity of European power grids is not strong, and a 7 kW residential charging station can cause power tripping. Therefore, charging station companies need to consider load balancing or orderly charging. While China has a mature digital payment system, foreign countries still retain existing credit card systems. Hence, DC charging stations need to install sockets compatible with different credit cards to ensure smooth payment for charging.