LONDON: China has become the world’s biggest exporter of cars after overtaking Japan in the first three months of the current year.
Official figures released last week showed China exported 1.07 million vehicles in the period, up 58 per cent compared to the first quarter of 2022. At the same time, Japan’s vehicle exports stood at 954,185 after edging up 6 per cent from a year earlier.
China’s exports have been boosted by demand for electric cars and sales to Russia. Last year, China overtook Germany to become the world’s second-largest car exporter.
According to China’s General Administration of Customs, China exported 3.2m cars in 2022, compared to Germany’s 2.6m car exports. The shift away from fossil fuels has supported fueling the rise of China’s motor industry.
First-quarter exports of new energy vehicles (NEVs), which include electric cars, rose by more than 90% compared to a year earlier.
Tesla’s China arm, SAIC – the owner of the MG brand – and BYD, which veteran the United States investor Warren Buffett backs, are among China’s top exporters of NEVs.
Elon Musk’s electric vehicle maker has a massive manufacturing plant in Shanghai which exports to regions including Europe and Japan.
Tesla’s ‘Gigafactory’ is recently capable of producing 1.25m cars a year, and the company plans to raise capacity further.
Last month, it started making Model Y sport utility cars for export to Canada.
China has seen exports to Russia surge since the start of the Ukraine war, as Western countries have imposed trade sanctions on Moscow.
The previous year, Chinese carmakers – including Chery, Geely, and Great Wall saw their car market share in Russia jump after rivals, including Toyota and Volkswagen, quit the country following the invasion of Ukraine.
