Country on track to become largest auto exporter in 2023

Release time:2023-11-29 Publisher:South Asia Development

A recent report by a German research institute shows that Chinese manufacturers sold 3.4 million vehicles overseas from January to September, more than Japan and Germany which exported 3.2 million and 2.4 million vehicles respectively during the same period.

Of the 3.4 million units, electric vehicles accounted for 24 percent, more than double last year's share. China surpassed Germany in automobile exports in 2022 and is expected to surpass Japan to become the world's largest auto exporter this year.

China's customs data also show that its automobile export volume exceeded that of Japan in the first quarter and then again in the first half of the year. Many domestic and foreign institutions also forecast China will become the world's largest auto exporter this year.

In recent years, China's automobile exports have not only successively broken the 2-million-unit and 3-million-unit marks, but the prices have also increased significantly, from 85,000 yuan ($11,916) per unit on average in 2018 to 122,000 yuan in 2022. The export destinations have also gradually expanded to Europe, North America and other developed markets. Data show that Chinese brands accounted for 8 percent of the European Union's electric vehicle market in 2022, and the proportion is expected to increase to 15 percent by 2025.

According to Wang Xia, president of the automotive sub-council at the China Council for the Promotion of International Trade, the reason why Chinese vehicles have become increasingly popular overseas is their comparative advantages in electrification and intelligence. A report released by international rating agency Moody's in August indicates that China's competitive advantage in lithium-ion battery production helps Chinese manufacturers reduce production costs.

While China's huge market brings significant advantages to the development of its electric vehicle industry, the ever-bigger presence of China's new energy vehicles across the world also testifies to the green transition of China's economy.

In 2021, China's green trade reached $1,161.09 billion, becoming the world's largest green trader. China has worked with partners to launch the International Alliance for Green Development under the Belt and Road Initiative to carry out cooperation on the green and low-carbon transformation, providing a platform for cooperation for the green development of Belt and Road countries and contributing to the green transition.