Car exports from China are on track to grow as the country shipped out the most automobiles worldwide in the first half of 2023. Cui Dongshu, secretary-general for the China Passenger Car Association (CPCA), said China is expected to see the exports exceed 5 million this year. The European market will likely be the largest driving force.
Cui said China's car exports have been increasing significantly in the past two years thanks to the surging shipment of new energy vehicles (NEV). The average price of an exported vehicle also has grown.
According to Chinese customs data, the country exported 2.34 million cars in the first six months of 2023, dethroning Japan for the first time in the half-year record. Data from the Japan Automobile Manufacturers Association shows that Japan shipped out 2.02 million vehicles in the first half of the year.
Cui said China's car exports should be able to surpass 5 million this year, with the European market offering the country a great opportunity. He said Europe demands a more significant number of cars as many of its resources remain tight. The continent also supports NEVs with several policies, which can benefit China's exports profoundly.
According to Cui, China's annual automobile exports stayed around 1 million for several years. The numbers reached 2.19 million in 2021 due to the production hit in other parts of the world caused by COVID-19 and Tesla ramping up manufacturing in Shanghai.
Source: CPCA, compiled by DIGITIMES Asia, August 2023
China saw its automobile exports increase by 73% year-over-year in the first half of 2023. Cui said China-made vehicles have been more competitive. Moreover, Chinese brands have replaced many international automakers in the Russian market. The two factors primarily drove the export growth.
Nikkei Asia reported that China's NEV exports in the first six months of 2023 doubled from 2022, accounting for a quarter of the country's overall automobile exports. Tesla exported over 180,000 vehicles and BYD shipped out more than 80,000 cars.
Cui said China-made NEVs are mostly exported to the UK, Thailand, France and Germany in the first half of this year. Companies like SAIC, Geely and BYD took up more market share in the Dutch market,
China-based NEV makers will have to tweak their design to accommodate foreign customers' needs, according to Cui. He said the companies have to set up charging infrastructure and ensure quality after sales in overseas markets. The priority is to build a good reputation in the European market, Cui added.
