BEIJING/SHANGHAI, Jan 9 (Reuters) – China is set to overtake Japan to become the world’s biggest auto exporter by 2023, the China Passenger Car Association (CPCA) said on Tuesday, as BYD, Chery and other domestic automakers shifted significant amounts of auto exports overseas. Has progressed.
1 in every 5 cars sold in Mexico in 2023 to be Chinese
World’s largest auto market also becomes top car exporter for the first time in 2023CPCA announced at a press conference that auto exports increased 62% to a record 3.83 million vehicles.
While Japanese customs data shows car exports at 3.5 million In the first 11 months of the year, except second-hand vehicles.
According to the association, total Chinese automobile exports last year were estimated at 5.26 million units, valued at about $102 billion, while Japanese exports for the full year were estimated at about 4.3 million units.
The figures are the latest sign that China has become a global auto export powerhouse, thanks in large part to the strength of its nimble electric vehicle makers., BYD overtook Tesla Inc as the world’s No. 1 seller of electric vehicles in the fourth quarter, though that was mainly based on sales in China.
China’s growing influence abroad has caused consternation among some governments, who fear the trend will impact their domestic automakers.
In September, the European Commission launched an investigation into the subsidies they receive on electric vehicles made in China, which Beijing called “protectionist.”
Last month, the Wall Street Journal reported that the administration of US President Joe Biden is studying the possibility of imposing tariffs on some Chinese products, including electric vehicles.
Chinese Customs will release December trade data on Friday.
Tesla, which exported 344,078 electric vehicles made in China, also contributed to the export boom.
China’s domestic auto market, the world’s largest, advanced sharply in 2023, with vehicle sales rising 5.3% to 21.93 million, on track for a third consecutive year of growth amid a tough price war. As automakers tried to appeal to consumers troubled by the faltering economic recovery.
Sales of vehicles powered exclusively by batteries in China rose 20.8% last year, followed by a 74.2% increase in 2022. Sales of plug-in hybrids, more affordable than pure electric vehicles, rose 82.5% last year after rising 160.5% a year earlier.
The number of domestic brands in China’s total sales is expected to increase from 56% last year to 63% in 2024, driven by strengthening brand identity in the electric vehicle segment and the rapid electrification of the industry. UBS auto analyst Paul Gong said at a roundtable Tuesday.
BYD, which is 7.98% owned by Warren Buffett-owned Berkshire Hathaway, has expanded aggressively in Southeast Asia and Europe. However most of its deliveries are made to China, where it has boosted sales by offering strong incentives to dealers.
However, Tesla operates more efficiently in China, and sells many more cars per store than BYD.
French car brands have lost the most gains in China this year, with sales down 41%According to the data of the first 11 months of the year. Sales of Japanese cars declined 10.7% and sales of American brands declined 1.4%.
In contrast, sales of German vehicles rose 2.5%, while sales of Chinese cars rose 15.7%.
Competition is expected to increase further.
Popular Chinese smartphone maker Xiaomi unveiled its first electric vehicle last month and announced that it aims to become one of the five largest automakers in the world.
(Reporting by Qiaoyi Li, Zhang Yan and Brenda Goh; Additional reporting by Daniel Leusink in Tokyo; Editing by Ricardo Figueroa in Spanish)
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