China surpasses Japan as the world’s largest car exporter
China is preparing to overtake Japan as the world’s largest exporter of automobiles in 2023, according to forecasts from the Chinese Association of Automobile Manufacturers. Domestic manufacturers such as BYD and Chery have seen significant growth internationally, propelling Chinese light vehicle exports to a record level of 3.83 million units last year. In comparison, Japan totaled 3.5 million exports over an 11-month period, excluding used vehicles, according to Japanese customs data.
Total Chinese vehicle exports, including trucks and buses, were estimated at 5.26 million in 2023, reaching a value of approximately $102 billion. This figure surpasses the forecast for Japanese exports for the year, estimated at around 4.3 million by the Chinese Association of Automobile Manufacturers. This growth in Chinese exports has been driven by emerging markets such as Russia, Mexico, and sustained demand in Europe.
However, despite this expansion, Chinese automakers have largely avoided the American market due to ongoing trade tensions between the US and China. The rise of Chinese electric vehicles, with companies like BYD even surpassing Tesla Inc. in global electric vehicle sales in the last quarter, has strengthened China’s dominant position in the international automotive sector.
This rapid rise of Chinese automakers abroad has sparked concerns within some governments, leading to investigations, particularly in Europe, into potential subsidies received by electric vehicles made in China. Trade tensions between the US and China could also escalate, with discussions of increasing tariffs on Chinese products, including electric vehicles.
Within the country, the Chinese automobile market continued its growth in 2023 with a 5.3% increase in light vehicle sales, reaching 21.93 million, marking a third consecutive year of growth. Electric vehicles have been particularly popular, with a notable increase in sales of fully electric and plug-in hybrid vehicles. Chinese brands are expected to further consolidate their position, reaching 63% of the market by 2024, according to expert forecasts.
Despite these advancements, foreign brands like French brands have experienced significant losses in the Chinese market, while German brands have seen growth. However, new competition is looming with the entry of Xiaomi, the Chinese smartphone manufacturer, into the automotive market, already displaying global ambitions to become one of the leading automakers.
