On October 21, 2023, Chinese-made cars will be ready for shipment and export at Yantai Port in eastern China’s Shandong Province. /CFP
On October 21, 2023, Chinese-made cars will be ready for shipment and export at Yantai Port in eastern China’s Shandong Province. /CFP
China’s auto industry has set new records, with both production and sales exceeding 30 million vehicles for the first time, according to data released by the China Association of Automobile Manufacturers (CAAM) on Thursday. The number of exported vehicles increased by 58% from the previous year to 4.91 million vehicles, and China is on its way to becoming the world’s largest automobile exporter.
In 2022, China became the world’s second largest automobile exporter. The industry continued to show strong growth in 2023, with production value increasing by 11.6% and sales increasing by 12% year-on-year. With global expansion, Chinese cars are now exported to more than 200 countries and regions.
“China’s automobile exports have increased from 1 million vehicles to 1 million vehicles in 55 years. By 2021, exports will exceed 2 million vehicles and approach 5 million vehicles in 2023,” said CAAM Executive Vice President said Fu Linfeng, also the secretary general.
“These milestones demonstrate that China’s auto industry has moved towards electrification and intelligence, accelerating the transformation of the global auto industry,” he said.
Past and present: From our founding to becoming a global export powerhouse
China’s automobile manufacturing industry has been developing for 70 years. In 1953, China’s first automobile manufacturing plant, the predecessor of the FAW Group, was established in Changchun City, northeastern Jilin Province, China, marking the beginning of the automobile industry.
Three years later, the first domestically produced Liberated Truck rolled off the assembly line, ending an era in which China could not produce its own vehicles. Then, in 2009, China’s car production and sales exceeded 10 million units for the first time, establishing China as one of the world’s leading car producers and markets.
Combined file photo shows two key moments at China FAW Group Corporation. One shows the first batch of liberated trucks leaving the assembly line (top) and FAW employees celebrate the completion of these trucks in Changchun, northeast China, on July 13, 1956 (bottom). Jilin province. /Xinhua News Agency
Combined file photo shows two key moments at China FAW Group Corporation. One shows the first batch of liberated trucks leaving the assembly line (top) and FAW employees celebrate the completion of these trucks in Changchun, northeast China, on July 13, 1956 (bottom). Jilin province. /Xinhua News Agency
Combined file photos show an engine workshop in Changchun, Jilin province in 1957 (top) and FAW engineers working on engine blueprints in 1963 (bottom). /Xinhua News Agency
Combined file photos show an engine workshop in Changchun, Jilin province in 1957 (top) and FAW engineers working on engine blueprints in 1963 (bottom). /Xinhua News Agency
Lin Jie, shift manager at the Shanghai Haitong International Automobile Terminal in Waigaoqiao, Shanghai, has witnessed firsthand the rapid growth in China’s car exports during his nearly 10-year tenure. On a typical work day, he is tasked with orderly loading more than 4,000 domestically produced cars onto his two large cargo ships bound for international waters.
“The ship on the left is mainly heading for the South American route and is carrying around 2,300 units, while the ship on the right is likely heading for the Persian Gulf route with an export volume of 2,000 units,” Lin said.
“Europe used to be a wasteland for exports, but in recent years, as China’s manufacturing industry has grown stronger, Europe has increased its imports of domestically produced new energy vehicles.”
As China’s largest automobile export terminal, the terminal is busy. According to Lin, by 2023, an average of nearly 3,000 vehicles will be shipped from China to destinations around the world every day, and full operation has become the norm. Over the years, the terminal has undergone a transformation. Initially, the focus was on imported cars, but now there has been a noticeable change in the balance between imported and exported cars.
“Automobile exports, especially new energy vehicle exports, have shown significant growth,” said Chen Yunbo, director of the business. “Last year, new energy vehicles accounted for more than 30% of our exports.”
Over the past two years, the terminal has been expanded with multiple new intelligent warehouses. Each can accommodate up to 6,000 commercial vehicles, matching the growth in China’s automobile exports.
BYD booth at the 2023 Munich Motor Show (also known as IAA MOBILITY 2023) on September 8, 2023 in Munich, Germany. /Xinhua News Agency
BYD booth at the 2023 Munich Motor Show (also known as IAA MOBILITY 2023) on September 8, 2023 in Munich, Germany. /Xinhua News Agency
Growing dominance of the NEV sector
New energy vehicles have now become a major growth factor for China’s automobile industry, significantly expanding exports. According to CAAM data, China will export 1.203 million new energy vehicles in 2023, an increase of 77.6% year-on-year. Moreover, BYD, the Chinese electric car brand, became the world’s largest pure electric car manufacturer in the fourth quarter of 2023.
This progress is supported by the development of large-scale industrial clusters in China in regions such as the Yangtze River Delta, the Pearl River Delta, and the Chengdu-Chongqing region. These clusters bring together more than 1,000 domestic and international companies, creating a well-coordinated supply chain system for the industry.
China is also a major producer of drive motors, with its power battery patent applications accounting for 74 percent of the world’s total. In 2023, six of the world’s top 10 power battery installed capacity companies will be Chinese companies, with a market share of over 60%.
Chinese luxury electric cars are gaining popularity in European countries such as Norway due to their competitive prices and quality. The spacious interior and powerful performance suit the travel preferences of Scandinavian consumers.
Torje Alexander Sland, CEO of Electric Way Norway, said: “Chinese car companies are developing rapidly. Product technology, innovation and design are all top-notch.” He remained optimistic about China’s new energy vehicle sales this year and outlined plans to strengthen cooperation with China.
In Norway, where electric cars account for 90% of new car sales, Chinese brands have a growing presence. According to a report by the Norwegian EV Association, 15 Chinese new energy vehicle brands are sold in Norway, with sales volume exceeding 100,000 units in 2023, accounting for nearly 15% of total vehicle sales. Sales of new energy vehicles made in China are expected to increase significantly this year.
“Chinese OEMs (original equipment manufacturers) have advanced technology in IT functions that are becoming increasingly important in today’s cars,” said Kristina Vu, director general of the Norwegian EV Association. Ta. She said, “For Norway, a country with harsh winters, we found that the Chinese model performed very well in cold environments.”