In the first quarter of 2023 China overtakes Japan as world’s largest car exporter, according to data released by the China Automobile Manufacturers Association. With a 58% year-on-year growth, overseas sales reached 1.1 million units, while Japan exported 950,000 vehicles, up 6%.

Chinese analysts note that increased domestic competition fueled by the promotion of electric vehicles and the price war initiated by Tesla has prompted Chinese automakers to seek opportunities in the international market to maintain their revenues. This trend was evidenced by the desire of Tesla CEO Elon Musk to meet with the new Chinese Prime Minister Li Qiang amid fierce competition for the Chinese market.

Another factor pushing Chinese exports up was the category of new energy vehicles (NEV), which includes electric and hybrid vehicles. These vehicles would be less affected by the global semiconductor and battery shortage that has affected Europe and Japan in recent years, in addition to tax breaks. NEV currently accounts for 40% of overseas sales, with Tesla, SAIC Motor and BYD being the main exporters.

New markets open to Chinese cars are concentrated in emerging economies such as Russia, which German and Japanese automakers have abandoned due to Western sanctions. In Latin America, Mexico leads in purchasing, while Saudi Arabia stands out in the Middle East. Thailand, which is still dominated by Japanese internal combustion engine car brands, is already the third largest importer of Chinese electric vehicles, behind only Belgium and Australia.

Further growth expected in the coming months

The China Automobile Manufacturers Association expects overseas sales to continue to grow, reaching 4 million units, up 30% from 2022, solidifying China’s leadership in the sector. China already surpassed Germany last year, exporting 3.2 million units, up 57% from 2021.

As exports account for 12% of China’s car sales in 2022 and rise to 18% in the first quarter of 2023, Shi Jianhua notes, China is getting closer and closer to its goal of becoming an automotive hub. association director.

During the West China International Trade and Investment Fair held in Chongqing, historian Niall Ferguson, now a Greenmantle consultant, highlighted the rising tide of electric vehicles coming from China as one of the most important trends in the global economy. He warns that this situation could lead to future friction as Western leaders recognize the threat posed by the Chinese auto industry.

China continues to develop in this strategic sector and aims to strengthen its position as the world’s leading car exporter, supported by automakers and growing demand for electric vehicles around the world.

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Source: BBC Source: China Automobile Manufacturers Association.

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