Largest Car Exporter in the World
China has emerged as the top global auto exporter, driven by the increasing demand for electric vehicles and higher shipments to Russia. According to the China Association of Automobile Manufacturers, China exported 1.07 million automobiles between January and March 2023, showing a significant 58% increase compared to the previous year.
During the same period, Japan exported 954,185 vehicles, experiencing a moderate 6% year-on-year growth, as reported by the Japan Automobile Manufacturers Association.
Reasons Behind China’s Car Export Growth
- In 2022, China became the world’s second-largest car exporter, surpassing Germany, with 3.2 million car exports compared to Germany’s 2.6 million.
- Chinese auto exports are expected to increase by 30% this year, reaching 4 million units.
- China became the largest market for new vehicles in 2009, supported by government incentives for the domestic electric vehicle (EV) industry.
- China’s transition to electric cars has boosted its position as an auto exporter, with Q1 exports of new energy vehicles surging 93% to 380,000 units, including 40% accounted for by EVs.
- Tesla China, with 90,000 units, led the exports of new energy vehicles, followed by SAIC Motor’s passenger vehicle unit (50,000 units) and BYD (30,000 vehicles).
- Exports of new energy vehicles, including electric cars, in the first quarter of the year, increased by over 90% compared to the same period last year.
- Chinese-made new energy vehicles found popularity in Belgium, Australia, and Thailand, signaling Chinese automakers’ interest in expanding their market share in Southeast Asia.
Russia: New Market for China
- The trade sanctions and the war in Ukraine have led to significant export growth from China to Russia.
- Chinese car manufacturers such as Geely, Chery, and Great Wall gained market share in Russia after competitors like Volkswagen and Toyota withdrew due to the Ukraine war.
- Russia became the primary export market for Chinese vehicles, receiving 140,000 units in Q1 2023, more than triple the previous year, as other global carmakers exited due to the Russia-Ukraine conflict.
- Chinese truck exports to Russia increased nearly seven times in Q1, including around 30,000 potential military-use vehicles. Mexico, Belgium, and Saudi Arabia followed Russia in terms of export volume.
- Tesla operates a large production plant in Shanghai, known as the ‘Gigafactory,’ which supplies vehicles to various regions.
- Tesla’s Shanghai Gigafactory serves as an export hub for markets like Europe and Japan, with Q1 exports increasing by 20% year-on-year.
- The Gigafactory, which started producing 250,000 vehicles annually in 2019, now has a capacity of 1.25 million units and plans to expand it further to 1.75 million units.
- In 2021, Gigafactory exports accounted for around 30% of the total, which increased to nearly 40% in the following year, with 270,000 vehicles exported.
- The Gigafactory recently produced Model Y SUVs for export to Canada.
- 3 August Current Affairs 2023 in English
- MoU Between Subroto Mukerjee Sports and Education Society and All India Football Federation (AIFF) to Promote Football at Grassroot Level
- Dr. Mansukh Mandaviya Delivers Keynote Address at the 13th Indian Organ Donation Day ceremony
- Education Ministry Forms Expert Panel on Anti-Discrimination in Higher Education
- Concerns Arise Over Cheetah Deaths at Kuno National Park