China’s domestic manufacturers delivered more cars overseas in July, increasing monthly exports by two-thirds and widening the gap with Japan as the world’s biggest car exporter.
“Automakers are maintaining their export growth trajectory, and rising demand for Chinese cars is prompting assemblers to expand production,” said Gao Shen, an independent analyst in Shanghai. “More Chinese car companies are now trying to strengthen sales in overseas markets.”
In the latest figures, China’s lead with Japan has widened by 15.8%. China exported 2.34 million vehicles in the first half of the year, which exceeded the 2.02 million vehicles exported by Japanese manufacturers as reported by the Japan Automobile Manufacturers Association (JJAMA). Japan exported 3.5 million cars in 2022.
Indeed, China’s export growth slowed by 24.4% in July compared to June’s shipments of 410,000 units. Still, analysts said growth could accelerate in coming months as Chinese-made cars become increasingly accepted by consumers in some developing countries.
Hozon has begun taking orders for its flagship electric sedan, Neta S, and small sport utility vehicles (SUVs), Neta U-II and Neta V. Great Wall, China’s largest SUV manufacturer, announced that it will sell several models, including the Tank 500. Indonesian Haval H6 model.
Although the CPCA did not disclose EV export figures for July, Canalys reported in June that overseas sales of China’s pure electric vehicles and plug-in hybrid vehicles will reach 1.3 million units in 2023, up from 679,000 units last year. It is expected to reach almost double that amount.
These will help combined exports of gasoline and battery-powered vehicles jump from 3.11 million to 4.4 million units in 2022, the research firm added.
Battle for supremacy in the world’s No. 1 electric vehicle market
Battle for supremacy in the world’s No. 1 electric vehicle market
Chinese EVs are “value for money, high-quality products, and can outperform most foreign brands,” Canaris said.
China is the world’s largest automotive and EV market, with around 200 EV assemblers competing to develop green and smart cars that can define the future of mobility.
UBS analyst Paul Gong predicted in April that EV sales in mainland China would rise 35% this year to 8.8 million units.
China’s strong car exports have contrasted with declines in primary commodity exports so far this year.
According to Chinese customs statistics, China’s exports in July fell for the third consecutive month, down 14.5% year-on-year to US$281.76 billion, the largest year-on-year decline since February 2020.