Surpassing Japan, China becomes the world's largest car exporter

China's auto exports jumped 62% to a record 3.83 million units in 2023, according to the China Passenger Car Association (CPCA). Meanwhile, Japanese customs data showed passenger car exports reached 3.5 million units in the first 11 months of the year, excluding used cars.

China's total auto exports are estimated to have reached 5.26 million units last year, worth about $102 billion, while Japan's full-year exports are forecast to reach about 4.3 million units, according to the CPCA report.

China's auto industry continues to grow rapidly, surpassing Japan in terms of car exports. (Photo: Brandcom)

The figures show that China - the world's largest auto market - will become the top auto exporter for the first time in 2023. This achievement is largely due to the potential and acumen of domestic electric car manufacturers.

China's BYD electric car maker overtook Tesla to become the world's top seller of electric vehicles in the fourth quarter, despite relying largely on domestic sales.

However, China's growing influence abroad has made many governments concerned about the development of their domestic auto industry.

In September, the European Commission (EC) launched an investigation into Chinese electric vehicles over government subsidies. The Chinese government has accused the EC investigation of being “protectionist.”

The Biden administration is also reportedly discussing the option of raising tariffs on a number of Chinese goods, including electric vehicles.

Tesla has also contributed to China's electric vehicle export boom, exporting 344,078 domestically produced electric vehicles.

The market is increasingly fierce

China’s domestic auto market also posted healthy growth in 2023, with vehicle sales rising 5.3% to 21.93 million units, the third consecutive year of growth amid an increasingly fierce price war in China as automakers scramble to attract consumers amid a slowing economic recovery.

Sales of pure electric vehicles in China rose 20.8% last year, after rising 74.2% in 2022. Meanwhile, sales of hybrid vehicles (vehicles that use a combination of an internal combustion engine and an electric motor) rose 82.5%, down from a record 160.5% a year earlier.

Xiaomi also officially entered the electric vehicle market with the SU7 model launched at the end of December 2023. (Photo: CarNewsChina)

Domestic brands' share of total auto sales in China is expected to increase from 56% last year to 63% in 2024, driven by growing domestic EV brand recognition and the rapid electrification of the industry, said UBS analyst Paul Gong.

BYD, 7.98% owned by Warren Buffett's Berkshire Hathaway, has expanded aggressively in Southeast Asia and Europe, although the bulk of its deliveries remain in China, where it has boosted sales with heavy incentives for dealers.

However, Tesla is more efficient in China, selling more cars per store than BYD.

According to data for the first 11 months of 2023, French car brands lost the most market share in China this year, with sales down 41%. Sales of Japanese cars fell 10.7%, while American cars fell 1.4%. In contrast, sales of German cars increased 2.5% and Chinese cars increased 15.7%.

The electric vehicle market in China is set to get even tougher, as popular Chinese smartphone maker Xiaomi launched its first electric vehicle last month and announced it is aiming to become one of the top five automakers in the world.

Hoa Vu (Source: Reuters)

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