China Becomes World’s Largest Car Exporter Country After Overtaking Japan

China has become the world’s largest car-exporting country after overtaking Japan in the first quarter of this year. BBC report says China exported 1.07 million units of cars in the first three months, 58% higher compared to the first quarter of 2022. In comparison, Japan’s exports for the first quarter stood at 954,185 units, up from 6% last year.

China’s export figures increased because of the demand for electric cars and exports to Russia. Last year, the country overtook Germany to become the world’s second-largest car exporter.

According to states provided by the General Administration of Customs of China, the Asian country exported around 3.2 million vehicles last year, while Germany’s export stood at 2.6 million.

The transition from fossil fuels has helped China’s motor industry evolve. China’s new energy vehicle (NEV) exports rose by 90% compared to last year.

SAIC Group, the Owner company of MG and the China arm of Tesla, was among the top exporters of NEVs. Tesla has a huge manufacturing plant in Shanghai, China, to cater to electric car demands of domestic and international markets like Europe and Japan.

Currently, this Tesla plant can produce 1.25 million vehicles annually, and Elon Musk is willing to further increase its production capacity. According to a BBC report, the company commenced production for Model Y sports utility to export in Canada last year.

China’s export to Russia also spiked due to the Ukraine war, as Western countries imposed trade sanctions on Russia. Chinese car makers like Geely, Chery, and Great Wall noticed growth in market share in Russia as European rivals like Volkswagen and Japanese carmaker Toyota quit the country.