China is on the verge of surpassing Germany and Japan as the world’s leading car exporter. In recent years, Chinese carmakers have made significant progress in expanding into foreign markets. In 2021, China exported almost 1.6 million cars, and that number increased to 2.7 million in 2022. The trend is expected to continue, with China shipping nearly 2 million cars in the first half of 2023.
Chinese cars were initially popular in poor countries, but now Western consumers are also buying Chinese-made cars. In the first half of 2023, exports to Australia tripled year on year, and sales to Spain rose 17-fold. However, many of these cars are Western-branded, with Tesla, MG, and Volvo making up a significant portion of the cars sent overseas.
China’s expertise in electric vehicles (EVs) has played a crucial role in its export growth. The country has heavily invested in EV technology, putting it at the forefront of the industry. Battery-powered vehicles now account for a fifth of car sales and a third of exports in China. In contrast, only 4% of Japan’s and 20% of Germany’s car exports are electric.
The conflict between Russia and Ukraine has also benefited Chinese car exports. Most Western carmakers ceased their operations in Russia, allowing their Chinese counterparts to capture the market. In the first half of 2023, Russia imported nearly 300,000 Chinese cars worth $4.5 billion, a six-fold increase from 2022.
Experts predict that Chinese-branded cars could reach 9 million foreign sales by 2030, double the number of Japan’s exports in 2022. While Chinese car brands are not well-known in the West, their affordability makes them popular in emerging markets like Brazil.
However, there are challenges ahead. While Chinese EV makers are experiencing strong sales, profitability remains a concern. The industry relies on state subsidies, but these may not last indefinitely. Nonetheless, China’s dominance in the global car export market shows no signs of slowing down.
According to energyportal.eu. Source of photos: internet