Good relations with Russia are an advantage that helps China "win the throne" of the world's largest auto exporter.

Thanks to its strong electric vehicle manufacturing team, China has surpassed Japan to become the world's largest auto exporter in 2023.

China has surpassed Japan to become the world's largest auto exporter in 2023.

Specifically, in 2023, China exported 4.9 - 5.2 million vehicles (depending on statistics), significantly higher than the 4.4 million vehicles of its Japanese rival.

Since 2017, Japan has consistently held the “throne” in the global automobile manufacturing sector. However, in 2023, the country was dethroned by China thanks to its competitive vehicle exports, especially electric vehicles.

"Overcoming" Japan

According to data released by the Japan Automobile Manufacturers Association (JAMA), the number of cars exported by Japanese automakers in 2023 increased significantly, up 16% from the previous year to 4.42 million units, including cars, trucks and buses. But when compared with the number of cars exported by China, this number is still lower.

China's auto exports actually reached 4.91 million units in 2023 (up 57.9%), or even 5.22 million units if based on data released by the country's Customs Administration in early January, according to the China Association of Automobile Manufacturers (CAAM).

Observers say that Japan’s loss of its position as the world’s largest auto exporter to China has long been predicted. However, this issue needs to be viewed rationally. In fact, the number of cars produced abroad by Japanese companies is twice as large (17 million units by 2022) as the number produced domestically. In contrast, Chinese manufacturers still have very few factories abroad, and their products are consumed internationally mainly through export activities rather than local sales.

Therefore, in terms of sales, 2023 is the fourth consecutive year that Japan continues to hold the position of the world's leading automaker, even setting a new record for total vehicle sales, reaching 11.2 million vehicles, according to official figures released on January 30.

However, the rapid expansion of Chinese automakers remains a concern for both Japan — where domestic manufacturers are lagging behind in electric vehicles — and the West.

A formidable competitor to any car company

In Asia’s largest powerhouse, electric vehicles have become a major industry. Chinese electric vehicle manufacturers have emerged as the most important competitors to any automaker, including electric car pioneer Tesla.

However, some critics argue that China's electric vehicle makers have benefited from more than a decade of continuous government subsidies.

Amid concerns about the competitiveness of European businesses and Chinese electric vehicle manufacturers, in September 2023, the European Commission (EC) announced an investigation into Chinese electric vehicle subsidies and threatened to impose high tariffs if the investigation found subsidies.

In the fall of 2023, EC President Ursula von der Leyen did not hesitate to declare: “The world market today is flooded with cheap Chinese electric cars. Their prices are kept artificially low thanks to huge state subsidies.”

Christopher Richter, an analyst at brokerage CLSA, once noted that China’s dramatic rise in auto exports had “led to trade tensions,” referring to tensions between Western countries and Japan in the 1980s.

According to this expert, the current situation of the Chinese auto industry shows an unsustainable development in the medium term. Therefore, Chinese manufacturers are urged to increase production capacity and export to foreign markets, just like Japanese car companies did in the 1980s.

For example, the case of BYD - China's largest electric vehicle manufacturer and has also become the world's number one electric vehicle manufacturer, surpassing even America's Tesla.

In late December 2023, the group announced plans to build a factory in Hungary to target the European market. In addition, BYD is building another factory in Brazil, with the first products expected to hit the market by the end of 2024. The group even said it could soon set up a second factory in Europe.

Several countries are trying to attract Chinese investment, including France, but it seems Spain is the target.

Thanks to good relations with Russia

It is also worth noting that China's auto exports are also benefiting from a distinct advantage over Japan or Western countries, which is its good relationship with Russia. Russia and Mexico are the two markets that import the most Chinese cars in 2023.

Chinese car exports to Russia have exploded since the Russia-Ukraine conflict broke out and Western countries imposed strict sanctions on Russia, forcing Western and Japanese automakers to abandon this important market.

In addition, not all of China’s total auto exports are domestic brands. For example, the American electric car brand Tesla maintains a “gigafactory” in Shanghai, where its products are not only sold in the Chinese market but also exported. However, when considering export figures, these cars are still counted for China.

In short, China is emerging as the “dominant” of the world’s auto market, especially electric vehicles. Cars made in China will be cheaper, while the models will be more diverse, thus easily attracting customers’ attention.

Source: https://baoquocte.vn/quan-he-tot-dep-voi-nga-la-mot-loi-the-giup-trung-quoc-gianh-ngoi-vi-nha-xuat-khau-o-to-lon-nhat-the-gioi-259950.html