China claims the title of the world's largest car exporter, surpassing Japan in the first quarter of the year. According to official reports, China exported 1.07 million vehicles during this period, marking a significant 58% increase compared to the same quarter in 2022. In contrast, Japan's vehicle exports reached 954,185 units, showing a modest 6% rise from the previous year. The surge in China's exports can be attributed to the high demand for electric cars as well as increased sales to Russia.
China surpassed Germany as the world's second-largest car exporter last year. According to the General Administration of Customs of China, the country exported 3.2 million vehicles in 2022, surpassing Germany's 2.6 million vehicle exports. The transition towards cleaner energy sources has played a significant role in the growth of China's automotive industry. In the first quarter, exports of new energy vehicles (NEVs), including electric cars, experienced a remarkable increase of over 90% compared to the previous year. Prominent exporters of NEVs in China include Tesla's China division, SAIC (the owner of the MG brand), and BYD, which is supported by renowned American investor Warren Buffett.
In Shanghai, Elon Musk's electric car manufacturer operates a vast manufacturing facility that exports vehicles to various regions, including Japan and Europe.
Known as Tesla's 'Gigafactory,' this production plant currently has the capacity to manufacture 1.25 million vehicles annually, and there are plans to expand this capacity even further.
Recently, the company initiated the production of Model Y sport utility vehicles at the factory for export to Canada.
Due to the trade sanctions imposed by Western countries on Moscow following the Ukraine war, China has witnessed a significant surge in exports to Russia.
Following the invasion of Ukraine, several competitors such as Volkswagen and Toyota exited the Russian market, leading to a notable increase in market share for Chinese automakers like Geely, Chery, and Great Wall in Russia.