China Surges Past Japan As World’s Top Car Exporter In Q1 2023

[beijingwalker]

China Surges Past Japan As World’s Top Car Exporter In Q1 2023​

China exported 3.32 million vehicles in 2022, and this number is set to increase this year

by Thanos Pappas​

July. 4 2023

China has rapidly evolved into a major force in the automotive industry, as proven by its ever-increasing exports. In 2022, China surpassed Germany to become the second largest exporter with 3.32 million vehicles. With a further increase so far in 2023, China has overtaken Japan, reaching the top spot in the first quarter of the year.

Chinese cars used to have a bad reputation for their build quality and safety credentials, but those days are long gone. Local automakers have improved so much that they can now compete head-to-head with well-established rivals, questioning their dominance in the global automotive landscape. A number of competitive advantages – including the lower cost – alongside China’s growing expertise in electric vehicles (it is the world’s largest market for EVs) are slowly changing the way people perceive Chinese models, leading to an unprecedented global expansion.

More: Get Ready For Chinese EVs To Flood The World As Costs And Prices Continue To Fall
SAIC’s MG4 fully electric hatchback is a direct rival to the VW ID.3 in UK market, coming with a highly competitive price tag.
As reported by S&P Global, China’s 3.32 million vehicle exports in 2022 represented a 57% growth compared to 2021. Between January and April 2023, China’s vehicle exports increased by 76% year-to-year to around 1.5 million, occupying the first place in the global charts.

While the demand for new vehicles in China is declining, the growth in export markets kept the local automotive industry quite busy. Note that, unlike overseas rivals, Chinese automakers weren’t hit by serious supply chain issues and semiconductor shortages, allowing them to flourish. SAIC Motor and Chery are heading the pack, with BYD and Geely showing great export potential.




China took advantage of the drastic changes in Russia’s automotive landscape following the war in Ukraine. Around 60 automakers used to be active in Russia before the sanctions, and now there are only 14 left.

Unsurprisingly, setting aside the local Lada, GAZ, and UAZ, all of them come from China, taking the majority of the forecast 760,000 vehicle sales in 2023 (down from the pre-war levels of 1.5 million units). In 2022, Russia accounted for 5% of Chinese vehicle exports but this number is expected to grow further in the future. The takeover is so intense that even Russian brands are now selling rebadged Chinese vehicles.

The BYD Atto 3 electric SUV has landed in Europe with a five-star EuroNCAP rating. Photo by Stefan Baldauf / Guido ten Brink for CarScoops
In Europe, China’s offensive is more gradual, as people need to be convinced about the quality of the products before leaving the safe waters of brand loyalty. Belgium is a strong market as it accounts for 6% of the Chinese vehicle exports, with another 4% ending up in the UK. A good business example is SAIC’s clever use of the MG brand which now sells more vehicles in Europe and the UK compared to China. Other automakers like BYD are planning to build factories in Europe, something that would help them avoid customs duties and improve their image in the Old Continent.


Mexico is China’s largest vehicle export market taking over 8% of the pie in 2022, mostly due to GM’s popular offerings which are built in Chinese factories. On the other hand, the US is not an easy target for China’s automotive industry due to the political tension between the countries and the 25% tariff imposed by the US government on Chinese-built models. Other tough cases include the markets of India and Turkey, where the local governments do not favor imported vehicles from China.

The future sounds promising for Chinese automakers who built their design, engineering, and manufacturing expertise by learning from their well-established Western competitors as part of joint ventures.

The Ora Lighthing Cat by Great Wall Motors will soon be available in Europe as a direct rival to the Tesla Model 3.

China Surges Past Japan As World's Top Car Exporter In Q1 2023 | Carscoops

China exported 3.32 million vehicles in 2022, and this number is set to increase this year

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[GreatHanWarrior]

Need to expand the European market.

 

[beijingwalker]

China tops the global NEV market with 20 millionth vehicle rolling off production line​

chinadaily.com.cn | Updated: 2023-07-04 15:12

China's 20 millionth new energy vehicle (NEV) rolled off the production line on Monday in Guangzhou, capital of Guangdong province.

With this record, the NEV sector has entered a new stage of large-scale, globalized, high-quality development and is becoming an important part of China's modern industrial system, according to Fu Bingfeng, executive vice-president and secretary general of the China Association of Automobile Manufacturers (CAAM).

Fu said it took 15 years for China's new energy vehicles to reach the first 10 million, while the second 10 million took only one year and five months.

China tops NEV market with 20 millionth vehicle rolling off production line

China's 20 millionth new energy vehicle (NEV) rolled off the production line on Monday in Guangzhou, capital of Guangdong province.

www.chinadaily.com.cn