China’s auto exports surges to 5.3 million cars in2023 to dethrone Japan

China Passenger Car Association، CPCA، stated that world's biggest auto market، has became the top auto exporter for the first time in 2023، with total auto exports were estimated to hit 5.26 million units for the whole of last year valued at about $102 billion، to dethrone Japan as world's top auto exporter، while Japan's full-year exports were forecast at about 4.3 million units، excluding second-hand vehicles.

China to have overtaken Japan as the world's largest auto exporter in 2023

China Passenger Car Association، CPCA، annonced that China is estimated to have overtaken Japan as the world's largest auto exporter in 2023 as car exports were estimated to hit 5.26 million units thanks to companies such as BYD، Chery and other domestic automakers made major strides overseas.

Customs data from last month showed China's car exports totalled 4.76 million units for the first 11 months of 2023، according to China Passenger Car Association، CPCA، while during the same period، Japan's car exports reached 3.99 million units، according to the Japan Automobile Manufacturers Association.

China has displaced Japan as the world's largest shipper of cars abroad

China Passenger Car Association، CPCA، revealed that China's auto exports are moving fast as Dongfeng Peugeot Citroen Automobile factory in Wuhan، Hubei province، and Banco Santander agreed on a European car loans alliance that the French carmaker plans to unveil alongside a recapitalisation deal with Chinese partner Dongfeng.

China has displaced Japan as the world's largest shipper of cars abroad، sending more than 5 million overseas last year، the China Passenger Car Association said with companies known for gas guzzlers were big winners، but electric vehicle makers like BYD are gaining share and will drive the trend on، added China Passenger Car Association، CPCA.

Both supply and demand are fuelling overseas sales

China Passenger Car Association، CPCA، confirmed that both supply and demand are fuelling overseas sales as on the supply side، automakers' factories in China have excess capacity equivalent to about 10 million vehicles a year، according to consultancy Automobility، giving them the wherewithal to ramp up production for exports.

Meanwhile، Russia's war with Ukraine prevents many international marques from selling to Russians، helping Chinese companies like Great Wall Motor take share snd hogged more than half of sales by August 2023، compared with less than 10% before the invasion، but those catalysts might not last as Russian sales seem to have peaked as domestic production recovers، and other competitors could creep back.

Beijing is tackling overcapacity by limiting production licences

China Passenger Car Association، CPCA، warned that at home، Beijing is tackling overcapacity by limiting production licences، while geopolitical friction is another potential roadblock: Geely has warned of delays in deliveries as attacks on vessels in the Red Sea force shippers to chart longer، more costly routes، and the European Union is probing Chinese companies' success there.

But Chinese carmakers' foreign roadtrip could nonetheless motor on as Auto companies' latest sales targets clearly imply that they are seeking to expand their foreign footprint، according to analyst Alvin Lau at Canalys، who sees a shift in their strategy as Chinese brands attempt to go global with their rising dominance in friendlier regions like Latin America and among Belt and Road allies could well prove sticky because exports are electrifying.

China Passenger Car Association، CPCA، reported that French auto brands lost the most ground last year in China with sales down 41%، according to data for the first 11 months of the year and sales of Japanese cars skidded 10.7% while U.S. brands saw sales decline 1.4%، in contrast، German vehicle sales were up 2.5% while those for Chinese cars jumped 15.7%.

CPCA: green cars، EVs، could represent over 50% of overseas sales by 2025

China Passenger Car Association، CPCA، sees that green cars، EVs، could represent over 50% of overseas sales by 2025، while Tesla، American electric car، played an outsized role، accounting for 5% of light vehicles exported in the first half of last year، domestically owned brands including BYD، Geely's Geometry and SAIC's MG are benefitting too.

China Passenger Car Association، CPCA، added that BYD and compatriots keep costs relatively low thanks to the country's highly developed electric car، EV، supply chain: they can make a vehicle for around 10 thousand euro less than a European rival، they have also developed a sharp technical edge، especially when it comes to software and the ability to develop new models at speed، as well as intense competition at home، particularly for mid-market electric models in the 200 thousand to-300 thousand yuan (around $28 thousand to $42 thousand) range، forces them to keep honing that edge.

China has now riding largely on the strength of its nimble electric car automakers

The global auto exports powerhouse that China has now become، riding largely on the strength of its nimble electric car automakers، that BYD overtook Tesla Inc as the world's top seller of green cars، EVs، in the fourth quarter، though based mostly on China sales، however the increasing Chinese clout overseas has caused consternation in some governments، who are fearful of the repercussions of that trend on their domestic automakers.

Domestic brands in China's total sales are expected to further increase to 63% in 2024 from 56% last year، bolstered by strengthening brand recognition in the green cars، EVs، segment and a rapid electrification of the industry، China Passenger Car Association، CPCA، indicated.