At the close of October 2024, China and Japan disclosed automotive export figures covering January to September. DIGITIMES Research noted that China's lead over Japan, first achieved in 2023, has continued to expand throughout 2024 as China's vehicle exports meet international standards and capture key market opportunities.
China's rise to the top in automotive exports has drawn widespread attention, particularly given that Japan held the title of the world's largest vehicle exporter for nearly five decades until China surpassed it last year. During the first nine months of 2024, China further extended its lead.
In 2023, China exported 5.221 million vehicles, outpacing Japan's 4.423 million units by roughly 800,000 vehicles—the first time China claimed the top spot. From January through September 2024, China shipped 4.7 million units compared to Japan's 3.061 million, widening the gap to 1.639 million units. China's automotive exports surged 26.7% compared to the same period last year, while Japan's declined by 4%.
China's export growth is driven by multiple factors. With a saturating domestic market and only a 3% average annual growth rate over the past decade, Chinese automakers have increasingly turned overseas for new opportunities. EV adoption in China has also reached 38.6%, signaling a push to tap into foreign markets for sustained growth.
Further bolstering exports, China's vehicle models increasingly align with international demand. Once dominated by small, regionally-focused cars, Chinese exports now include competitively priced SUVs and technologically advanced EVs that rival European and US counterparts in quality and appeal.
China's export reach has also shifted. Previously focused on Africa and less-developed regions, Chinese vehicles now target higher-income, densely populated countries, providing a significant boost to export growth.
EVs remain a stronghold for China's automakers, driving substantial export volume. In 2023, China exported 1.77 million EVs, over 30% of its total vehicle exports. Through the first nine months of 2024, EV exports totaled 1.524 million, representing 32.4% of all auto exports—a 22% increase from the same period last year.
The European Union, Southeast Asia, Central and South America, the Middle East, and other Asian countries account for 82% of China's EV exports, with the EU and Southeast Asia leading at 32.3% and 16.7%, respectively. Although recent EU tariffs have impacted Chinese EV exports to the region, China's cost-effective, feature-rich vehicles continue to counterbalance tariff pressures, with automakers increasingly diversifying into new markets to mitigate the impact.
