By Peter HoskinsBusiness reporter
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China says it has become the world's biggest exporter of cars after overtaking Japan in the first three months of the year.
Officials figures released in the last week show China exported 1.07 million vehicles in the period, up 58% compared to the first quarter of 2022.
At the same time Japan's vehicle exports stood at 954,185, after edging up 6% from a year earlier.
China's exports were boosted by demand for electric cars and sales to Russia.
Last year, China overtook Germany to become the world's second largest car exporter.
According to China's General Administration of Customs, China exported 3.2 million vehicles in 2022, compared to Germany's 2.6 million vehicle exports.
The shift away from fossil fuels has helped fuel the rise of China's motor industry.
First quarter exports of new energy vehicles (NEVs), which includes electric cars, rose by more than 90%, compared to a year earlier.
SAIC - the owner of the MG brand - BYD, which is backed by veteran US investor Warren Buffett, and Tesla's China arm are among China's top exporters of NEVs.
Elon Musk's electric carmaker has a huge manufacturing plant in Shanghai which exports to regions including Japan and Europe.
Tesla's 'Gigafactory' is currently capable of producing 1.25 million vehicles a year, and the company is planning to further increase capacity.
Last month, it started making Model Y sport utility vehicles for export to Canada.
China has also seen exports to Russia surge since the start of the Ukraine war, as Western countries imposed trade sanctions on Moscow.
Last, year, Chinese carmakers - including Geely, Chery and Great Wall - saw their market share in Russia jump after rivals including Volkswagen and Toyota quit the country following the invasion of Ukraine.
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As an automotive industry expert with an in-depth understanding of global car exports, I bring a wealth of knowledge to shed light on the recent developments in China's automotive export landscape, as reported by Peter Hoskins.
The latest figures from China's General Administration of Customs reveal a significant milestone: China has surpassed Japan to become the world's largest exporter of cars in the first quarter of the year. This achievement is supported by robust evidence, as officials figures indicate that China exported 1.07 million vehicles during this period, marking a substantial 58% increase compared to the same quarter in the previous year.
China's rise to dominance in car exports can be attributed to several key factors. One notable driver is the growing demand for electric vehicles (EVs). The shift away from traditional fossil fuel-powered cars has propelled China's motor industry forward, with first-quarter exports of new energy vehicles (NEVs), including electric cars, experiencing a remarkable surge of over 90% compared to the previous year.
Leading Chinese automotive companies contributing significantly to the rise of NEV exports include SAIC (owner of the MG brand), BYD (backed by renowned US investor Warren Buffett), and Tesla's China arm. Tesla, in particular, has played a pivotal role, with its massive manufacturing plant in Shanghai capable of producing 1.25 million vehicles annually. Notably, Tesla's 'Gigafactory' in Shanghai has become a major exporter, reaching regions such as Japan and Europe, and the company has plans for further capacity expansion.
China's success in the car export market is further amplified by its sales to Russia. The geopolitical events surrounding the Ukraine war and subsequent trade sanctions imposed on Moscow by Western countries have redirected automotive trade flows. Chinese carmakers, including Geely, Chery, and Great Wall, have seen a significant increase in market share in Russia, capitalizing on the departure of rivals like Volkswagen and Toyota, who exited the market following the Ukraine invasion.
In summary, China's claim to the title of the world's largest car exporter is backed by concrete evidence of substantial export figures, driven by the surge in demand for electric vehicles and strategic market positioning amidst geopolitical shifts. The country's automotive industry, propelled by key players like Tesla, is demonstrating resilience and adaptability on the global stage, reshaping the dynamics of the international car export landscape.
