China has become the world's leading auto exporter in the first quarter of 2023, surpassing Japan. According to the China Association of Automobile Manufacturers, China's automobile exports from the January-March period surged 58 per cent from the previous year to 1.07 million units, driven by increased demand for electric vehicles and higher deliveries to Russia. In comparison, Japan's exports reached 9,50,000 vehicles, a 6 per cent increase on the year, as reported by the Japan Automobile Manufacturers Association.
Russia became the leading export destination for all Chinese-made vehicles in the first quarter, with exports surging over threefold from the previous year to 1,40,000 units. The departure of global automakers such as Toyota Motor and Volkswagen from the Russian market following the Ukraine conflict in February 2022 created an opportunity for Chinese automakers to fill the void. Chery Automobile and Great Wall Motor, in particular, have expanded their sales in Russia, with Chery Automobile receiving funding from Chinese municipal government-linked entities.
Also Read: QJ Motor SRC 500 Review: A Potent Modern-Classic Cruiser?
Moreover, China's truck exports to Russia, potentially applicable for military purposes, increased nearly sevenfold in the first quarter to nearly 30,000 units. Mexico, Belgium, and Saudi Arabia followed Russia as the top export destinations for Chinese-made vehicles.
China's auto exports are expected to continue growing throughout the current quarter. An industry group for passenger vehicles predicts a 30 per cent increase in exports for the full calendar year, reaching 4 million units. This surge in exports is attributed to China's push towards electric vehicles, with exports of new energy vehicles, including EVs, rising by 93 per cent to 3,80,000 units in the first quarter. Notably, new energy vehicles accounted for approximately 40 per cent of China's total auto exports.
Also Read: Great Wall Motors Unveils Limited-Run Tank 300 Cyber Knight SUV
In terms of specific companies, Tesla's China arm emerged as the top exporter of new energy vehicles, exporting 90,000 units. Following closely were SAIC Motor's passenger vehicle unit with 50,000 units and BYD with 30,000 vehicles, according to Chinese media reports. Notably, Chinese automakers are utilizing EVs to gain market share in Southeast Asia, a region traditionally dominated by Japanese automakers, with Thailand ranking third as a destination for Chinese-made new energy vehicles.
Tesla has positioned its Shanghai Gigafactory as an export hub for vehicles destined for Europe, Japan, and other markets. The Gigafactory's exports from China grew by 20 per cent in the first quarter compared to the previous year. The facility, which began operations in 2019 with a capacity of 2,50,000 vehicles annually, can now produce 1.25 million units per year. Reports indicate that Tesla has applied for permits to further increase capacity to 1.75 million units.
Last year, exports from the Gigafactory accounted for nearly 40 per cent of the total, rising from almost 30 per cent in 2021. Recently, the Gigafactory commenced production of Model Y sport utility vehicles for export to Canada.
