China’s automotive industry continues to grow rapidly, as it overtakes Japan by increasing the volume of Chinese car exports.
According to a report, figures released recently show China exported 1.07 million vehicles in the period, up 58 per cent compared to the first quarter of 2022. At the same time, Japan’s vehicle exports stood at 954,185, after edging up 6 per cent from a year earlier.
China’s exports were boosted by demand for electric cars and sales to Russia. Last year, China overtook Germany to become the world’s second-largest car exporter.
According to China’s General Administration of Customs, China exported 3.2 million vehicles in 2022, compared to Germany’s 2.6 million vehicle exports.
The shift away from fossil fuels has helped fuel the rise of China’s motor industry.
First-quarter exports of new energy vehicles (NEVs), which include electric cars, rose by more than 90 per cent, compared to a year earlier.
SAIC – the owner of the MG brand – BYD, which is backed by veteran US investor Warren Buffett, and Tesla’s China arm are among China’s top exporters of NEVs.
Elon Musk’s electric carmaker has a huge manufacturing plant in Shanghai which exports to regions including Japan and Europe.
Tesla’s ‘Gigafactory’ is currently capable of producing 1.25 million vehicles a year, and the company is planning to further increase capacity.
Last month, it started making Model Y sport utility vehicles for export to Canada. China has also seen exports to Russia surge since the start of the Ukraine war, as Western countries imposed trade sanctions on Moscow.
Last year, Chinese carmakers – including Geely, Chery and Great Wall – saw their market share in Russia jump after rivals including Volkswagen and Toyota quit the country following the invasion of Ukraine.
Chinese automakers have significantly improved and are now able to compete with top names in the global automotive landscape, Carscoops wrote on July 4. China’s competitive advantages, including lower cost and expertise in electric vehicles, has slowly changed the way people perceive Chinese cars.
According to data from S&P Global, China’s 3.32 million vehicle exports in 2022 represented a 57 per cent growth compared to 2021. Between January and April this year, China’s vehicle exports rose by 76 per cent (yoy) to around 1.5 million.
Automakers SAIC Motor and Chery are leaders of China’s vehicle exports. BYD and Geely are also showing huge export potentials.