China has announced that it has become the world's largest car exporter, surpassing Japan in the first quarter of the year.
Official figures released last week reveal that China exported 1.07 million vehicles during this period, marking a 58% increase compared to the first quarter of 2022. In contrast, Japan's vehicle exports totaled 954,185, showing a modest 6% rise from the previous year.
The surge in China's exports is largely attributed to the rising demand for electric cars and increased sales to Russia. This milestone follows China's achievement last year when it surpassed Germany to become the world's second-largest car exporter.
According to China's General Administration of Customs, China exported 3.2 million vehicles in 2022, outpacing Germany's 2.6 million vehicle exports. The global shift away from fossil fuels has significantly contributed to the growth of China's automotive industry.
In the first quarter, exports of new energy vehicles (NEVs), including electric cars, surged by over 90% compared to the same period last year. Leading Chinese NEV exporters include SAIC, which owns the MG brand, BYD, backed by veteran US investor Warren Buffett, and Tesla's China arm.
Elon Musk's Tesla operates a massive manufacturing plant in Shanghai that exports to regions such as Japan and Europe. This 'Gigafactory' has an annual production capacity of 1.25 million vehicles, with plans for further expansion. Recently, Tesla began producing Model Y sport utility vehicles for export to Canada.
Since the onset of the Ukraine war, China has experienced a significant increase in car exports to Russia, as Western nations imposed trade sanctions on Moscow. Last year, Chinese carmakers such as Geely, Chery, and Great Wall expanded their market share in Russia. This growth followed the exit of competitors like Volkswagen and Toyota from the Russian market in response to the invasion of Ukraine.
Source:bbc
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