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Visitors look at BYD vehicles at the IAA Mobility 2023 International Motor Show in Munich, Germany, September 6, 2023.
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It is certain that China overtook Japan last year to become the world’s number one exporter of automobiles, due to strong demand from Russia and rising global demand for electric vehicles (EVs). This was predicted by a major industry group.
The China Passenger Car Association (CPCA) said on Tuesday that the country exported a record 5.26 million vehicles last year, including cars, buses and trucks, potentially increasing by 56% from 2022 and totaling $102 billion. announced.
Japan, the current market leader, is expected to ship 4.3 million cars over the same period, giving it an estimated lead of nearly 1 million vehicles.
“It is certain that China has become the world’s largest exporter,” the association said on Tuesday.
CPCA said China’s rapid rise to the top could be attributed to its world-leading EV industry, improved quality of Chinese-made cars, and the ambition of domestic manufacturers. Automakers need to seek increased profitability overseas to offset cost pressures at home.
China’s car exports totaled 4.76 million units in the first 11 months of 2023, according to customs data last month. According to the Japan Automobile Manufacturers Association, Japan’s automobile exports during the same period reached 3.99 million units.
of Rankings will be finalized once official annual statistics for China and Japan are released. Both are expected to be completed in the coming weeks.
In the first 11 months of last year, car shipments from China to Russia rose 545% to 840,000 compared to a year ago, making it the fastest-growing market, according to the latest Chinese customs data. Ta.
Chinese automakers have benefited from the absence of global competitors in Russia, which invaded Ukraine in February 2022, causing hundreds of global brands to exit.
2023 was a banner year for Chinese EVs, which were cheaper than models made by other rivals. They have also expanded to Europe, Australia, and Southeast Asia.
Hector Ramal/AFP/Getty Images
An employee of Chinese automaker Nio inspects a car on an assembly line in Hefei, eastern China’s Anhui province, on May 10, 2023.
According to the CPCA, passenger car exports in 2023 increased by 62% from 2022. More than a quarter of them were electric. said. In fact, exports of all EVs, including battery electric vehicles, plug-in hybrid vehicles, and hydrogen fuel cell vehicles, increased by 70%.
BYD, the EV market leader, shipped 36,095 vehicles in December alone. From outside China, SAIC Motor Corporation had 19,427 units, followed by Tesla (TSLA) with 18,334 units.
China’s automobile exports surged in 2021 due to a rapid increase in China’s EV shipments. That year, Tesla designated the Shanghai Gigafactory as a major export hub, Production in the factory. in front after that, China’s annual car shipments to overseas markets have remained at around 1 million units for almost 10 years.
In the same year, China’s car shipments increased by 103% to 2.2 million units, surpassing South Korea to become the world’s third-largest exporter. In 2022, China will overtake Germany and become the world’s second largest automobile exporter after Japan.
Chinese automakers are increasingly expanding overseas, especially after the domestic economy lost momentum last year. Tesla lowered prices domestically in January 2023 to attract customers and halt slowing growth.
This move has sparked a price war among EV manufacturers. Dozens of automakers followed suit to stay competitive. Although price competition increased sales, it threatened the industry’s overall profitability.
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Xpeng X2 EV model at Beyond Expo in Macau on May 10, 2023
That’s why international markets are so important. BYD sent a large delegation to the German car show last September. A spokesperson said at the time that the company was aiming to double the number of dealer partners in Europe in 2023 and increase overseas sales from about 56,000 units in 2022 to 250,000 units. said.
Last month, BYD announced that it would build an EV plant in Hungary, its first passenger car plant in Europe.that We already have a bus factory in Komárom, Hungary.