Sunday, June 16, 2024

China overtakes Japan in car exports

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China overtakes Japan in car exports | China has overtaken Japan as the world's leading car exporter in 2023. China Passenger Car Association (CPCA) provided the information. Last year, Chinese electric car companies BYD and Chery did well, making China the top car exporting country.

China has overtaken Japan as the world’s leading car exporter in 2023. China Passenger Car Association (CPCA) provided the information. Last year, Chinese electric car companies BYD and Chery did well, making China the top car exporting country.

In 2023, China will become the world’s top car market to become the top car exporter, CPCA said at a press conference. China’s new car exports rose 62 percent last year. In 2023, China exported a total of 38 lakh 30 thousand new cars. On the other hand, according to data from Japan’s customs department, the country sold 3.5 million new passenger cars in the first 11 months of last year, excluding old cars. CPCA calculations are not official statistics. The country’s customs department will release official figures on Friday.

According to CPCA data, in 2023, China exported a total of 5.26 million units of new and old vehicles, with a financial value of about 102 billion or 10,000 billion US dollars. On the other hand, Japan exported 4.3 lakh units of new and old vehicles last year.

That is, China has now become the new world car industry, although the reason for their rise last year was the increase in sales of electric cars. At the end or fourth quarter of last year, the Chinese company BYD overtook Tesla in the electric car market; Although their cars are sold mainly in the Chinese market. Tesla has also played a role in the growth of China’s car exports. Last year Tesla exported 344 thousand 78 cars manufactured in China factory.

Meanwhile, Western countries are worried about the rise of China in the car market. Their fear is that their country’s car companies will be in trouble due to the rise of China. In September last year, the European Commission launched an investigation into Chinese electric vehicles. They allege that these Chinese car companies receive government subsidies, calling Beijing protectionist. On the other hand, according to a report of the Wall Street Journal, China is considering increasing tariffs on several products, including electric cars.

In addition to exports, car sales have also increased in China’s domestic market. In 2023, the country’s domestic car sales increased by 5.3 percent to 21.93 million or 21.9 million 30 thousand units. Car companies have also offered big discounts to attract buyers as China’s economic situation worsens.

In 2022, sales of 100% battery-powered cars in China increased by 72 percent; In 2023 it has increased to 20.8 percent. Meanwhile, in 2024, domestic brand car sales in the Chinese market are expected to increase by 63 percent.

7.98 percent of China’s BYD Company is owned by Warren Buffett’s Berkshire Hathaway Company. Last year the company launched aggressive marketing in Southeast Asia and Europe, although most of its sales were in China. They have given huge incentives to distributors to attract buyers within the country. However, Tesla’s sales system is more efficient than BYD’s, according to a Reuters report.

Meanwhile, the sales of most car companies in other countries in the world decreased in the Chinese market last year. The new name in China’s electric car market is smartphone company Xiaomi. They launched their first car last month and have already announced that they want to be one of the top five car companies in the world.

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