After surpassing the world’s dominating nations in technological domains, China has now gained ground in the global auto sector. As per international media, China has officially overtaken Japan as the world’s largest auto exporter in 2023.
The China Passenger Car Association (CPCA) recently announced that China, already the world’s biggest auto market, has become the top auto exporter. More importantly, this is the first time China has ever secured a spot on the podium for global exports.
The Key Players
Domestic auto market such as BYD, Chery, and other played a pivotal role in this achievement, making substantial strides in overseas markets. The CPCA estimates China’s total auto exports for the entire to reach 5.26 million units, valued at approximately $102 billion. In comparison, Japan’s full-year exports are protected to be around 4.3 million units.
Electric vehicles (EVs) have been a driving force behind China’s export success, with nimble EV automakers like BYD surpassing industry giants such as Tesla. BYD even claimed the title of the world’s top-selling EV manufacturer in the fourth quarter of 2023, albeit driven mainly by strong sales within China.
Domestic Market
China’s domestic auto market, the largest in the world, experienced steady growth in 2023, with vehicle sales riding by 5.3% to 21.93 million. This growth was marked by a fierce price war among car manufacturers, aiming to attract consumers amid an uncertain economic recovery.
As China solidifies its position as a global automotive powerhouse, competition is expected to intensify. Notably, Xiaomi, a popular Chinese smartphone maker, unveiled its first electric vehicle last month, expressing ambitions to rank among the world’s top five automakers
This surge in Chinese automotive exports has raised concerns in several countries. In September, the European Commission initiated a probe into Chinese-made electric vehicles, citing potential subsidies. Similarly, the Biden administration in the United States is reportedly considering raising tariffs on some Chinese goods, including EVs.
The figures provide the most recent evidence of China’s emergence as a dominant force in global auto exports, driven primarily by the success of its agile electric vehicle manufacturers. In the fourth quarter, BYD surpassed Tesla Inc (TSLA.O) to become the leading global seller of electric vehicles, primarily due to strong sales in China.
Undoubtedly, China is surpassing all nations in nearly all fields. Chinese local brands like Haval, MG, Cherry and others have tremendously enhanced their quality and giving a tough competition to Japanese brands in terms of available car options and built quality. Big three Toyota, Honda and Suzuki facing declining sales Ono the other hand yet not taking any tangible measures to remain in market whatsoever. Soon these would be doomed as they are trying so.