China has now risen as a major player in the global auto industry, having surpassed Japan as the largest auto exporter in 2023, according to international media reports.
The China Passenger Car Association (CPCA) revealed that China, already the world’s biggest auto market, has taken the lead in auto exports. This marks China’s first appearance at the top of the global export rankings.
Key Contributors
Chinese automakers such as BYD, Chery, have played a significant role in this achievement, expanding their reach in international markets. The CPCA estimates that China’s total auto exports for the year will reach 5.26 million units, with a value of approximately $102 billion. In comparison, Japan’s full-year exports are projected to be around 4.3 million units.
The success of China’s auto exports is attributed to electric vehicles (EVs), with companies like BYD outperforming industry giants like Tesla. BYD even claimed the title of the top-selling EV manufacturer in the fourth quarter of 2023, driven mainly by strong sales within China.
Domestic Market
While China’s domestic auto market experienced steady growth in 2023, with vehicle sales increasing by 5.3% to 21.93 million, the industry also saw intense competition among car manufacturers due to an uncertain economic recovery.
As China solidifies its position as a global automotive powerhouse, competition is expected to intensify. Xiaomi, a popular Chinese smartphone maker, recently unveiled its first electric vehicle, expressing ambitions to rank among the world’s top five automakers.
The 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.
