China has officially claimed the title of the world’s top car exporter, surpassing Japan in the first quarter of this year, according to official figures released by Chinese officials. China exported 1.07 million vehicles during the period, marking a significant 58% increase compared to the first quarter of 2022. Meanwhile, Japan’s vehicle exports reached 954,185, showing a modest 6% rise from the previous year.
China’s car exports were bolstered by the growing demand for electric vehicles (EVs) and sales to Russia. The country’s transition towards electric cars has played a significant role in the surge of its motor industry. In the first quarter, exports of new energy vehicles (NEVs), including electric cars, witnessed a remarkable growth of over 90% compared to the previous year.
China’s top exporters of NEVs include Tesla’s China arm, SAIC (owner of the MG brand), and BYD (backed by Warren Buffett). Tesla, with its massive manufacturing plant in Shanghai, exports vehicles to various regions, including Japan and Europe. The company’s “Gigafactory” currently has the capacity to produce 1.25 million vehicles annually, and it has plans for further expansion. Recently, Tesla started manufacturing Model Y sport utility vehicles for export to Canada.
Additionally, China has experienced a surge in exports to Russia amid trade sanctions imposed on Moscow by Western countries following the start of the Ukraine war. Chinese automakers such as Geely, Chery, and Great Wall have witnessed a significant increase in their market share in Russia, as competitors like Volkswagen and Toyota withdrew from the country after the invasion of Ukraine.
China’s domination in the global car export market reflects its growing influence and expertise in the automotive industry, particularly in the realm of electric vehicles. With the ongoing shift towards sustainability and the demand for EVs on the rise, China’s position as the leading car exporter is expected to strengthen further in the coming years.
