China has officially overtaken Japan to become the world’s largest automobile exporter, marking a major shift in the global automotive industry. This milestone reflects China’s growing dominance, fueled by strong supply chains, cutting-edge technology, and a booming electric vehicle (EV) sector.
China Leads Global Car Exports
In 2023, China exported 4.91 million vehicles, surpassing Japan’s 4.42 million, according to data from the China Association of Automobile Manufacturers (CAAM) and the Japan Automobile Manufacturers Association. This achievement underscores China’s increasing competitiveness in the global car market.
Zhang Xiang, director at the Digital Automotive International Cooperation Research Center, called this a turning point for China’s auto industry, highlighting its expanding influence worldwide.
The Role of Electric Vehicles in China’s Success
A key factor behind China’s export surge is the rise of new-energy vehicles (NEVs). In 2023, China shipped a record 1.203 million NEVs, marking an astonishing 77.6% year-on-year growth. With a well-developed NEV ecosystem, China now holds about 70% of global patents for NEV technologies and over 50% for internet-connected vehicles.
China’s Auto Giants and Their Global Expansion
China’s automotive rise is also powered by its leading manufacturers:
- CATL (Contemporary Amperex Technology Co. Ltd.): The world’s largest EV battery maker projected a net profit between 42.5 billion yuan ($5.99 billion) and 45.5 billion yuan for 2023, with a 38-48% growth from the previous year. The company credits its success to cutting-edge battery innovations and aggressive global expansion.
- BYD: China’s EV giant announced plans to open an NEV production facility in Szeged, Hungary, further strengthening its European market presence.
China’s Key Export Destinations
Data from CAAM shows that China’s top auto export markets include:
- Russia and Spain: Among the top 10 importers of Chinese vehicles.
- Belgium, Thailand, and the UK: Leading markets for Chinese NEVs.
China’s cost-effective production and advanced technology have given its automakers a strong edge in international markets. Lower manufacturing costs make Chinese vehicles highly competitive against Western and Japanese brands.
What’s Next for China’s Auto Industry?
Experts predict continued growth for China’s auto exports in 2024. With increasing investment in localized production and distribution networks, China’s automakers are well-positioned to further expand their global footprint.
As the world shifts toward electric mobility, China’s dominance in battery technology and cost-effective EV production will likely keep it at the forefront of the automotive industry for years to come.
