In the first quarter, China surpassed Japan as the world’s leading auto exporter. The demand for electric vehicles and increased deliveries to Russia were the driving factors behind China’s achievement. China’s automobile exports for the January-March period rose by 58% compared to the previous year, reaching 1.07 million units, according to the China Association of Automobile Manufacturers. In contrast, Japan exported 950,000 vehicles during the same quarter, reflecting a 6% increase from the previous year, according to the Japan Automobile Manufacturers Association.
Chinese auto exports are expected to continue growing in the current quarter. An industry group for passenger vehicles predicts a 30% increase in exports for the entire year, reaching 4 million units.
China’s ascent as an auto exporting power can be attributed to its emphasis on electric vehicles. In the first quarter, exports of new energy vehicles, including electric vehicles, surged by 93% compared to the previous year, reaching 380,000 units. New energy vehicles accounted for approximately 40% of China’s total auto exports.
Among the top exporters of new energy vehicles in China, Tesla’s China arm led the pack with 90,000 units. SAIC Motor’s passenger vehicle unit followed with 50,000 units, and BYD with 30,000 vehicles, as reported by Chinese media.
Chinese-made new energy vehicles found their main markets in Belgium, Australia, and Thailand. The presence of Chinese automakers in Thailand indicates their efforts to gain market share in Southeast Asia, a region traditionally dominated by Japanese automakers.
Regarding all Chinese-made vehicles, Russia emerged as the primary export destination in the first quarter. Exports to Russia more than tripled compared to the previous year, reaching 140,000 units. This surge was partly due to the withdrawal of global automakers such as Toyota Motor and Volkswagen from the Russian market after the Russia-Ukraine conflict in 2022. Chinese automakers, including Chery Automobile and Great Wall Motor, filled the void left by these companies and expanded their sales in Russia.
It’s worth noting that China exported around 30,000 trucks to Russia in the first quarter, a nearly seven-fold increase from the previous year. These trucks, which could potentially be used for military purposes, were also exported to Mexico, Belgium, and Saudi Arabia.
Tesla has established its Shanghai Gigafactory as an export hub for vehicles destined for Europe, Japan, and other markets. The factory’s exports from China grew by 20% in the first quarter compared to the previous year. The Shanghai Gigafactory, which began operations in 2019 with a capacity of 250,000 vehicles annually, now has the capability to produce 1.25 million units per year. Reports suggest that the factory has applied for permits to further increase its capacity to 1.75 million units.
In 2022, exports from the Gigafactory accounted for nearly 40% of the total, up from almost 30% in 2021. Furthermore, the factory recently commenced the production of Model Y sport utility vehicles for export to Canada.