Listen to the audio version of the article
Japan has dominated the automotive export market for decades with Germany and South Korea also exporting huge amounts of cars to markets outside their borders. According to preliminary data from the China Association of Automobile Manufacturers (CAAM), China exported 4.41 million cars from January to November, representing a growth of 58% compared to the same period last year.
China has overtaken Japan, Germany and South Korea
China is ahead of former export leader Japan which also saw an increase in 2023 of 15% to 3.99 million cars for a total of 4.3 million vehicles. The last time Japan was knocked out of first place for cars on display was 2016, when it was overtaken by Germany. China exported a staggering 730,000 vehicles to Russia between January and October last year, seven times more than the number recorded in 2022.
Russia, Mexico, but also south-east Asia
Chery Automobile and Great Wall Motor exported mainly gasoline-powered cars to Russia, including medium and large SUVs. And while Mexico’s figure isn’t as impressive at 330,000 units, exports increased by 71%. But Chinese companies are not satisfied and are trying to create production bases in these countries to access the United States without having to pay heavy import duties.
Exports to Thailand doubled
Most of China’s exports of pure electric or electrified eco-vehicles which are equal to 34% of all auto exports in 2023 are directed to Europe and Southeast Asia. Tesla which operates in China and BYD, the world‘s second largest electric vehicle manufacturer, are focusing on these types of exports so much so that they have doubled towards Thailand compared to last year, even exceeding those destined for the United Kingdom.
A new challenging terrain for Chinese brands
From now on the South-East Asian market will become a battleground with the Japanese. According to the US consultancy firm AlixPartners, the basis of yet another Chinese escalation is state subsidies, which are increasingly a determining factor for the competitive advantage of Chinese companies in exports. The government’s massive subsidy programming has, in fact, expanded the supply chain for the production and sale of cars across borders.