For the first time ever, China has become the world’s number one auto exporter. This is because China increased sales in Russia where carmakers of Western countries, including South Korea, have left the market and enjoyed a sharp increase in electric vehicle sales, which led to a spike in China’s car exports.
China’s exports in the first 11 months of this year totaled 4.42 million vehicles, up 58 percent from the same period of 2022, the Nikkei reported, using data from the China Association of Automobile Manufacturers (CAAM) on Dec. 28. Japan came in second with 3.99 million units, up 15 percent over the same period of 2022.
China had already surpassed Japan in the first half of this year and was on track to take the top spot for the whole year of 2023. This means that Japan will be pushed off the top spot for the first time since 2016 when Germany took it thanks to Volkswagen’s strong performance.
Behind the expansion of Chinese auto exports is Russia. While most Western countries, including South Korea, have withdrawn from the Russian car market, China exported 730,000 vehicles to Russia in the January-October period of this year, seven times more than in the same period last year.
The Mexican market has also emerged as a major export market for Chinese automakers. China sold 330,000 vehicles in Mexico in the first ten months of this year, up 73 percent year on year. The Chinese auto industry plans to build on its sales gains in Mexico before moving into North America, the world’s largest auto markets.
Exports of Chinese electric vehicles (EVs) have also climbed. According to the CAAM, China’s EV exports reached 1.43 million units in the first 10 months of this year, up 77 percent from the same period of 2022. They accounted for 34 percent of China’s total car exports.