- Written by Peter Hoskins
- business reporter
China has announced that it has overtaken Japan in the first three months of this year to become the world’s largest car exporter.
At the same time, Japan’s automobile exports totaled 954,185 units, an increase of 6% from the previous year.
China’s exports increased due to demand for electric vehicles and sales to Russia.
Last year, China overtook Germany to become the world’s second-largest car exporter.
According to the General Administration of Customs, China exported 3.2 million cars in 2022, compared to 2.6 million cars exported by Germany.
The transition away from fossil fuels is helping fuel the rise of China’s auto industry.
Exports of new energy vehicles (NEVs), including electric vehicles, increased by more than 90% in the first quarter compared to the same period last year.
SAIC Motor (owner of the MG brand), the Chinese arm of BYD and Tesla, backed by veteran US investor Warren Buffett, are among China’s top exporters of NEVs.
Elon Musk’s electric car maker has a huge manufacturing plant in Shanghai and exports to regions such as Japan and Europe.
Tesla’s Gigafactory currently has the capacity to produce 1.25 million vehicles a year, and the company plans to further expand its production capacity.
Last month, the company began manufacturing the Model Y sport utility vehicle for export to Canada.
In addition, China’s exports to Russia have increased rapidly since the outbreak of the Ukraine war as Western countries imposed trade sanctions on Russia.
Last year, Chinese automakers such as Geely, Chery and Great Wall saw their market share surge in Russia after rivals such as Volkswagen and Toyota withdrew from Russia following the invasion of Ukraine.