China’s automobile exports increased by about 60 per cent in the first quarter, surpassing Japan as the world’s top automotive exporter.
As per the most recent statistics from the General Administration of Customs, China’s automotive exports increased by 58 per cent year on year to over 1.1 million units from January to March. Meanwhile, according to the Japan Automobile Manufacturers Association, Japan exported 954,000 automobiles.
The surplus is expected to persist as China’s auto exports may increase by about 30 per cent to four million cars this year, exceeding Japan’s yearly forecast, according to the China Passenger auto Association, reported Yicai Global.
What’s the trend?
The trend has been evident for some time, as China shipped 3.1 million automobiles last year, surpassing Germany to become the world’s second-largest auto exporter, trailing only Japan.
Chinese automakers are looking for fresh opportunities abroad, since exports accounted for about 12 per cent of total Chinese vehicle sales last year, rising to nearly 18 per cent in the first quarter.
As per Shi Jianhua, deputy secretary-general of the China Association of Automobile Manufacturers, if the percentage grows to 20 per cent, China would be on its way to becoming a major auto exports country.
China’s auto exports have risen in recent years because suppliers have been less affected by chip and battery shortages in Europe, the United States, and Japan, and they have been able to fill the output gap of new energy vehicles and gas-powered cars, according to an auto exporter in Wuhu, Anhui province.
Experts believe that as competition in the Chinese market heats up, local automakers might enhance their sales and profit margins by exporting their goods.
As per CAAM figures, China’s car exports increased by nearly thrice last month to 425,000 units. SAIC Motor shipped 82,000 vehicles, nearly double its previous figure. BYD’s shipments increased roughly 17-fold to 15,000 units.
Stats from 2022
In 2022, China became the world’s second largest car exporter by surpassing Germany. GAC data showed that China exported 3.22 million vehicles in 2022, increasing 56.8 per cent year-on-year while Germany exported 2.61 million vehicles.
Xu Haidong, deputy general engineer of the China Association of Automobile Manufacturers (CAAM), said that China-made vehicles have become more competitive on a global level, owing to tough quality control, sophisticated industrial chain and advanced maintenance services, reported the Global Times.
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