Will China overtake Japan as the world’s largest auto exporter in 2023?

BEIJING/SHANGHAI, Jan 9 (Reuters) – China will overtake Japan as the world’s biggest auto exporter by 2023, the China Passenger Car Association (CPCA) said on Tuesday, as BYD, Chery and other domestic automakers made big strides overseas.

1 out of every 5 cars sold in Mexico in 2023 was Chinese

The world’s largest auto market also became the top car exporter in 2023 for the first timeCPCA announced at a press conference that auto exports rose 62% to a record 3.83 million vehicles.

While Japanese customs data showed car exports at 3.5 million In the first 11 months of the year, excluding second-hand vehicles.

According to the association, total Chinese automobile exports for last year were estimated at 5.26 million units, valued at about $102 billion, while Japanese exports for the entire year were forecast at about 4.3 million units.

The figures are the latest sign that China has become a global auto export powerhouse, largely thanks to the strength of its agile electric vehicle manufacturers.. 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 impact of the trend on their domestic automakers.

In September, the European Commission launched an investigation into subsidies for electric vehicles made in China, which Beijing called “protectionist”.

Last month, the Wall Street Journal reported that US President Joe Biden’s administration is studying the possibility of imposing tariffs on some Chinese products, including electric vehicles.

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Chinese customs will release December trade figures on Friday.

Tesla, which exported 344,078 electric vehicles made in China, also contributed to the boom in exports.

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China’s domestic auto market, the world’s largest, is on pace to grow 5.3% to 21.93 million vehicles in 2023, its third consecutive year, amid a fierce price war. As automakers tried to appeal to consumers unsettled by the faltering economic recovery.

Sales of battery-only vehicles in China rose 20.8% last year, following a 74.2% increase in 2022. Sales of plug-in hybrids, which are more affordable than pure electric vehicles, rose 82.5% last year after a 160.5% increase last year. Earlier

Domestic brands are expected to grow from 56% of China’s total sales to 63% in 2024, boosted by strengthening brand recognition in the electric vehicle segment and the rapid electrification of the industry. on 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 with strong incentives to dealers.

Tesla, however, operates more efficiently in China, selling far more cars per store than BYD.

French car brands have lost the most ground in China this year, with sales down 41%, according to data from the first 11 months of the year. Sales of Japanese cars fell 10.7% and sales of American brands fell 1.4%.

In contrast, German vehicle sales rose 2.5%, while Chinese car sales rose 15.7%.

Competition is expected to increase.

Popular Chinese smartphone maker Xiaomi unveiled its first electric vehicle last month and announced that it aims to become one of the world’s five largest automakers.

(Reporting by Qiaoyi Li, Zhang Yan and Brenda Goh; Additional reporting by Daniel Lussink in Tokyo; Editing in Spanish by Ricardo Figueroa)

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