China claims to have surpassed Japan as the world’s largest car exporter in the first three months of the year.
China surpassed Japan as largest car exporter
According to official figures released last week, China exported 1.07 million vehicles during the period, a 58% increase over the first quarter of 2022. At the same time, Japan’s vehicle exports stood at 954,185, up 6% from the previous year.
Demand for electric vehicles and sales to Russia boosted China’s exports. China surpassed Germany to become the world’s second largest car exporter last year.
China exported 3.2 million vehicles in 2022, compared to Germany’s 2.6 million vehicle exports, according to General Administration of Customs. The transition away from fossil fuels has aided the rise of automobile industry.
Exports of new energy vehicles (NEVs), which include electric vehicles, increased by more than 90% in the first quarter compared to the previous year.
SAIC, the owner of the MG brand, and BYD, which is backed by veteran US investor Warren Buffett, are among top NEV exporters.
Elon Musk’s electric car company has a large manufacturing plant in Shanghai and exports to Japan and Europe.
Tesla’s ‘Gigafactory‘ can currently produce 1.25 million vehicles per year, and the company plans to expand capacity further. It began producing Model Y sport utility vehicles for export to Canada last month.
China’s exports to Russia have also increased since the start of the Ukraine war, as Western countries imposed trade sanctions on Moscow.
Last year, Chinese automakers such as Geely, Chery, and Great Wall saw their market share in Russia increase after rivals such as Volkswagen and Toyota left the country following Ukraine’s invasion.
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