China Is Now The World's Largest Exporter Of Automobiles

China is now the world's leading auto exporter due to the growing demand for electric vehicles and higher shipments to Russia.

China exported 1.07 million automobiles between January and March 2021, marking a 58 per cent rise since last year, reports the China Association of Automobile Manufacturers.

In Q1, Japan exported 950,000 vehicles, marking a 6 per cent YoY increase per the Japan Automobile Manufacturers Association.

Chinese auto exports are projected to increase by 30 per cent this year to 4 million units, according to a passenger vehicle industry group.

China overtook the United States as the biggest market for new vehicles in 2009, boosted by government support for the domestic EV industry through tax incentives, purchasing and charging infrastructure.

China's move to electric cars has boosted its position as an auto exporter, with Q1 exports of new energy vehicles surging 93 per cent to 380,000 units, of which 40 per cent were accounted for by EVs.

Tesla China exported 90,000 units of new energy vehicles, making it the leading company in China, followed by SAIC Motor's passenger vehicle unit at 50,000 units and BYD at 30,000 vehicles.

Chinese-made new energy vehicles were most popular in Belgium, Australia, and Thailand. This highlights the interest of Chinese automakers in building market share in Southeast Asia, a region where Japanese car companies have historically held control.

Russian invasion of Ukraine in February 2022 caused global carmakers like Toyota and Volkswagen to shut down their factories and exit the market, filled by Chinese automakers.

Chery and Great Wall Motor grew sales in Russia, with Chery backed by Chinese local governments' funding.

In Q1, China's truck exports to Russia almost increased by seven times, with around 30,000 potential military-use vehicles. Mexico, Belgium, and Saudi Arabia came after Russia in terms of export volume.

Tesla's Shanghai Gigafactory now serves as an export hub for markets like Europe and Japan, with its Q1 exports rising 20 per cent YoY from China.

Shanghai's Gigafactory started producing 250,000 vehicles yearly in 2019, but can now produce 1.25 million units. The factory is seeking permits to boost its capacity to 1.75 million units, says media reports.

In 2021, Gigafactory's exports made up almost 30 per cent of the total. A year later, it rose to nearly 40 per cent with 270,000 vehicles exported.

Gigafactory made Model Y SUVs for export to Canada last month.