China Surpasses Japan, Emerging as Global Leader in Automobile Exports

China Surpasses Japan, Emerging as Global Leader in Automobile Exports

22 Aug, 2023

 

China Surpasses Japan, Emerging as Global Leader in Automobile Exports

 

In the first half of 2023, China emerged as the primary global exporter of automobiles, swiftly overtaking Japan within a mere six months. This transformation has been driven by a surge in sales of Chinese electric cars on a worldwide scale, as highlighted in a Nikkei Asia report.

The report reveals that prominent Chinese automakers shipped out a total of 2.14 million vehicles from January to June. The data sourced from the China Association of Automobile Manufacturers (CAAM) indicates a remarkable 76 percent year-on-year increase in exports. In comparison, the Japan Automobile Manufacturers Association reported Japan's exports at the same figure of 2.14 million, signifying a 17 percent rise.

China had already established a lead over Japan in exports during the January-March quarter. This upswing in exports aligns with the progressive growth of the electric vehicle (EV) sector, which has witnessed escalating demand in European and Russian markets.

In the period spanning January to June, China's exports of new energy vehicles, encompassing EVs, plug-in hybrids, and fuel cell cars, more than doubled, constituting a noteworthy 25 percent of the country's total automobile exports. Among competitors, BYD, a leading Chinese rival, exported over 80,000 vehicles, while Tesla's exports from its Shanghai facility, which functions as an Asian export hub, exceeded 180,000 vehicles.

During this timeframe, China also dispatched 287,000 automobiles to Russia, including conventionally powered vehicles, according to customs data compiled by CAAM. The aftermath of Moscow's Ukraine invasion in February 2022 led to a reduced presence of South Korean, Japanese, and European automakers in Russia. Chinese automotive brands subsequently entered the void in the Russian market.

Belgium, a strategic transit point in Europe transitioning towards electrification of its automotive fleet, along with Mexico, where demand for gasoline-powered vehicles remains robust, featured prominently as destinations for Chinese exports.

Notably, in 2022, China led global new car sales with an impressive 26.86 million vehicles. Japan's collective EV sales, inclusive of gasoline-powered vehicles, reached 5.36 million, surpassing the nation's total new vehicle sales of 4.2 million.

A prognostication from American company AlixPartners, projecting into 2027, anticipates that electric vehicles will constitute 39 percent of new car sales in China, surpassing the predicted global EV adoption rate of 23 percent. Substantial government incentives have fueled this heightened demand for EVs in China, positioning domestic manufacturers like BYD to potentially account for 65 percent of the nation's electric vehicle sales by 2030.

China's automotive manufacturers have bolstered their export competitiveness through enhanced domestic lithium-ion battery supply, a factor that influences EV performance and pricing dynamics.

Tomoyuki Suzuki, Managing Director at AlixPartners in Tokyo, stated, "After 2025, Chinese automakers are expected to capture a significant share of Japan's primary export markets, including the United States," as quoted by Nikkei Asia.

 

 


Related News

Japanese Businesses Stay Optimistic Despite Upcoming Tariff Challenges

03 Apr, 2025

Large Japanese businesses remained optimistic in the first quarter despite…
Read More
Japan Business Leaders Meet PM Modi to Strengthen Trade Relations

28 Mar, 2025

Prime Minister Narendra Modi held discussions with a high-powered delegation…
Read More
Japan's Business Confidence Drops in March Amid Tariff, China Concerns

20 Mar, 2025

Japan’s business confidence weakened in March, with manufacturers’ sentiment turning…
Read More
Japan-India Partnership Expands with Green Hydrogen and Cultural Ties

13 Mar, 2025

Japan’s Yamanashi Prefecture is strengthening its partnership with India through…
Read More
Japan-India Partnership Expands with Green Hydrogen and Cultural Ties

11 Mar, 2025

Japan’s Yamanashi Prefecture is strengthening its partnership with India through…
Read More
DTI Strengthens Business Partnerships with Japan and Hong Kong for Growth

03 Mar, 2025

The Philippines is strengthening its economic ties with Japan and…
Read More

© 2025 Business International News. All rights reserved | Powered by Cred Matters.