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China’s July automobile exports jump 63 per cent, helping extend the lead over Japan as the world’s biggest vehicle-exporting economy

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China’s July automobile exports jump 63 per cent, helping extend the lead over Japan as the world’s biggest vehicle-exporting economy

Published: 3:15pm, 13 Aug, 2023

China’s July overseas shipments jumped 63 per cent to 310,000 vehicles from a year ago, raising the total to 2.65 million units in the first seven months of the year

Local brands made up 248,000 units, or 80 per cent, of July’s exports, according to data compiled by the China Passenger Car Association

China’s home-grown marques delivered more automobiles abroad in July, driving a two-thirds jump in monthly exports that extended the nation’s lead over Japan as the world’s largest vehicle exporter. July’s overseas shipments jumped 63 per cent to 310,000 vehicles from a year ago, raising the total to 2.65 million units in the first seven months of the year, according to data compiled by the China Passenger Car Association (CPCA). Local brands made up 248,000 units, or 80 per cent, of July’s exports, CPCA said. “Carmakers maintained a growth trajectory for exports and rising demand for Chinese vehicles are encouraging assemblers to ramp up production,” said Gao Shen, an independent analyst in Shanghai. “More Chinese automotive firms are now looking to bolster sales in overseas markets.” The latest numbers widened China’s 15.8-per cent lead over Japan. China exported 2.34 million vehicles in the first half, more than the 2.02 million Japanese marques reported by the Japan Automobile Manufacturers Association (JJAMA). Japan exported 3.5 million vehicles in 2022.

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This aerial photo taken on July 5, 2023, shows cars to be loaded for export at Yantai Port in east China’s Shandong province on July 21, 2023. Photo: Xinhua

To be sure, China’s July exports growth slowed by 24.4 per cent compared with June’s shipments of 410,000 units. Still, analysts said growth may pick up over the coming months as Chinese-made vehicles are increasingly well received by consumers in some developing countries.

Some assemblers in China – a left-hand drive market – are developing right-hand drive vehicles for exports. Hozon New Energy Automobile of Shanghai and Great Wall Motor in the Hebei provincial city of Baoding announced plans last week to ship right-hand drive vehicles to Indonesia.

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undated photograph of 4,000 Neta electric cars by Hozon New Energy Automobile, bound for exports. Photo: Weibo

Hozon has begun taking orders for its flagship Neta S electric sedan, and the compact sports-utility vehicles (SUV) Neta U-II and Neta V. Great Wall, China’s largest maker of SUVs, said it would sell several models including the Tank 500 and Haval H6 models in Indonesia.

The CPCA did not disclose the number of EV exports in July, but Canalys predicted in June that China’s overseas sales of pure electric and plug-in hybrid vehicles are expected to reach 1.3 million units in 2023, almost double the number of 679,000 units last year. They will contribute to a surge in combined exports of petrol and battery-powered vehicles to 4.4 million units from 3.11 million in 2022, the research firm added.

Chinese EVs are “value for money and high-quality products, and they can beat most of foreign brands,” Canalys said.

China is the world’s largest automotive and EV market where about 200 EV assemblers are competing against each other to develop green and smart cars that can define the future of mobility. EV sales in mainland China will rise by 35 per cent this year to 8.8 million units, UBS analyst Paul Gong forecast in April. China’s buoyant car exports stood in a contrast to the country’s falling exports of commodities so far this year.

 
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Local brands made up 248,000 units, or 80 per cent, of July’s exports, according to data compiled by the China Passenger Car Association
Big jump for the Chinese domestic brands. China auto industry want nothing short of total domination.
 
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Japan/Germany's auto industry is in serious trouble.

They certainly are but it depends upon if they are in the market and if they have local factories. I don't think many of China's auto companies have local factories.


chinaAutoExports.png



this is from 2015 but I expect it would not change much
japan-vehicle-exports.png
 
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China is on course to overtake Japan and become the world’s No.1 car exporter

PUBLISHED TUE, AUG 15 202312:26 AM EDTUPDATED AN HOUR AGO

KEY POINTS
  • China has surpassed Germany to become the world’s second largest car exporter, and is now on course to overtake Japan’s placing as the top exporter, according to a Moody’s Analytics report.
  • A surging demand for electric vehicles sent overall auto exports from China beyond the levels seen before the pandemic
WUHU, CHINA - AUGUST 11: Chery Automobile Co. vehicles wait for shipment at a port on August 11, 2023 in Wuhu, Anhui Province of China. (Photo by Wang Yushi/VCG via Getty Images)

China, automobile, vehicles

Vcg | Visual China Group | Getty Images

China is on course to overtake Japan as the world’s top auto exporter by the end of 2023, according to Moody’s Analytics.

“China made heads turn through the pandemic as it strutted past South Korea in 2021 and Germany in 2022, making it the second-largest car exporter,” the credit ratings agency said in a report last week.

China is now closing in on Japan, the report said, adding that the shortfall averaged at around 70,000 cars per month in the June quarter, compared to almost 171,000 in the same period last year.

“At this pace, China is on track to overtake Japan by the end of the year,” Moody’s economists wrote, a global ranking which Japan has claimed since 2019.

Competitive advantage?​

A surging demand for electric vehicles sent overall auto exports from China beyond the levels seen before the pandemic.

In the first half of 2023, China’s EV export receipts doubled from the same period last year. In comparison, overall auto exports from Japan and Thailand — which include both traditional vehicles and EVs — have yet to see a return to pre-pandemic levels.

China boasts a competitive advantage in lithium-ion battery cell production, which Moody’s cited as a factor giving its carmakers an edge when it comes to EV production costs.

According to Moody’s projections, China produces more than half the world’s lithium supply, thanks to its low labor costs compared to rivals Japan and South Korea. China also boasts more than half of the world’s refining capacity for the metal.
Indeed, the speed at which China has embraced new technologies in the automobile industry is unparalleled.
Moody’s Analytics
As a result, some of the world’s largest auto companies have set up production facilities in China, including Tesla and BMW. However, Moody’s noted that the foreign brands did not eclipse local ones like Chery and SAIC.

“Indeed, the speed at which China has embraced new technologies in the automobile industry is unparalleled,” the economists said.

The Asia-Pacific region, which is home to some of the world’s largest auto exporting powerhouses such as South Korea, China and Japan, has seen a mixed recovery in auto exports, Moody’s highlighted.

Still, EVs made up nearly 30% of all passenger cars sold worldwide last year, compared to less than 5% pre-pandemic.

According to the International Energy Agency in April, EV car sales jumped to more than 10 million in 2022, with China leading the charge and accounting for about 60% of the market.
Moody’s attributed the uptick in EV demand in part to “large price cuts by Chinese manufacturers and generous government supports.” For example, a 10% purchase tax on the new cars has been exempt for EVs since 2014.

 
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