For the first time in history, China has become the world’s number one exporter of automobiles. This is because automakers in Western countries, including South Korea, have withdrawn from the market and China has increased sales in Russia, where sales of electric vehicles are rapidly increasing, leading to a surge in Chinese car exports.
On December 28, the Nihon Keizai Shimbun reported using data from the China Association of Automobile Manufacturers (CAAM) that China’s exports in the first 11 months of this year totaled 4.42 million vehicles, which is higher than the same period in 2022. This was an increase of 58% compared to the previous year. Japan came in second place. Sales amounted to 3.99 million units, an increase of 15% compared to the same period in 2022.
China had already surpassed Japan in the first half of this year and was on track to take the top spot in 2023. This means that Japan will fall from the top spot for the first time since 2016, when it lost the top spot to Germany. Thanks to Volkswagen’s strong performance.
Russia is behind the expansion of China’s automobile exports. While most Western countries, including South Korea, are withdrawing from the Russian car market, China exported 730,000 cars to Russia from January to October this year, seven times more than in the same period last year.
The Mexican market has also emerged as a major export market for Chinese automakers. China sold 330,000 cars in Mexico in the first 10 months of this year, an increase of 73% from a year ago. China’s auto industry plans to build on increased sales in Mexico to expand into North America, the world’s largest auto market.
China’s exports of electric vehicles (EVs) also increased. According to CAAM, in the first 10 months of this year, China’s EV exports reached 1.43 million units, an increase of 77% compared to the same period in 2022. It accounted for 34% of China’s total automobile exports.