China Retains Position as World's Top Auto Exporter, Surpassing Japan

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espite earlier reports indicating that Japan had overtaken China as the world’s largest auto exporter in 2023, new data has emerged, suggesting that China did, in fact, maintain its position as the leading exporter. Japanese customs data initially reported that Japan exported 5.97 million vehicles in 2023, surpassing China’s reported 5.22 million vehicle exports.

However, manufacturing association data from both countries now indicates that China outpaced Japan, particularly in the passenger car segment, with 4.14 million passenger car exports compared to Japan’s 3.978 million in 2023. These figures highlight China’s dominance in the automotive sector and its ability to compete on a global scale.

A significant portion of China’s car exports, over 70% in 2023, comprised gasoline-powered vehicles, according to the Ministry of Commerce. The surge in gasoline-powered car exports to Russia followed the geopolitical events, with many international manufacturers leaving the Russian market, creating an opportunity for Chinese automakers.

Mexico as a major destination

Mexico also emerged as a major destination for Chinese gasoline-powered car exports, marking a notable shift in the traditionally protective Mexican auto industry. Chinese-made cars gained significant market share in Mexico, raising questions about the reasons behind their rapid growth in the region.

In terms of electric vehicles (EVs), China continued to make strides. The new energy vehicle penetration in China reached 40% of new passenger car sales by the end of 2023, far surpassing the approximately 7% in the United States. Chinese battery and EV company BYD surpassed Tesla in overall vehicle production in 2023, selling more battery-powered cars than the U.S. automaker in the fourth quarter.

The global automotive industry is undergoing a transformation, with China at the forefront, leading in electrification, internet connectivity, autonomous driving, and other technological innovations. China’s strategic vision, significant investments in research and development, and a supportive government have propelled the country to dominate the EV market and become a major force in the global automotive sector.

Shaping the future of the automotive industry

China’s continued success in exporting vehicles, particularly EVs, is expected to shape the future of the automotive industry, with a forecast of 5.4 million units exported in 2024, of which EVs are anticipated to constitute 40%. As China’s car makers focus on innovation and expanding their reach to new markets, the country is poised to strengthen its position as a global automotive leader.

Just a decade and a half ago, China’s presence in the automotive industry was characterized as lagging behind. In 2010, reports from a Western automotive industry journal highlighted China’s overseas vehicle sales primarily involving low-tech trucks and buses. These vehicles were predominantly shipped to less-developed markets, including Africa, Eastern Europe, and Central and South America, where buyers were perceived as more easily satisfied. The journal expressed skepticism, stating that despite the surrounding hype, homegrown Chinese cars were not deemed ready for the major export markets.

However, a significant transformation has occurred, driven by China’s extensive supply chain advantages and reduced costs in logistics, labor, and land use. Chinese electric vehicle (EV) manufacturers now boast a cost advantage of at least 20 percent compared to their American and European counterparts. Presently, China stands as the world’s largest automobile market and serves as the leading production and innovation hub for auto components and vehicles.

The momentum toward a green revolution in pursuit of sustainable global development is undeniable. The Global Carbon Project, during the ongoing global climate talks in Dubai, has reported a projected 1.1 percent increase in carbon dioxide emissions from burning fossil fuels this year compared to 2022. This announcement takes place as leaders assess progress toward the international goal of limiting global warming to 2 degrees Celsius above preindustrial temperatures.

Sources: Associated Press and Global Times