China dethrones Japan as world's top auto exporter

BEIJING — China is estimated to have overtaken Japan as the world's largest auto exporter in 2023, the China Passenger Car Association said on Tuesday, as BYD, Chery and other domestic automakers made major strides overseas.

The group said China's light-vehicle exports jumped 62 percent to a record 3.83 million last year. Japanese customs data showed passenger car exports at 3.5 million in the first 11 months of the year, excluding second-hand vehicles.

China's total vehicle exports, including larger trucks and buses, were estimated to hit 5.26 million last year and valued at about $102 billion, while Japan's full-year exports were forecast at about 4.3 million, according to the China Passenger Car Association. Russia, Mexico and other emerging markets, along with Europe, were behind the surge in China's vehicle exports, the group said.

Chinese automakers have largely avoided the U.S. light-vehicle market, primarily because of trade tensions between Washington and Beijing.

The 2023 figures offer the latest indication of the global auto exports powerhouse that China has become, riding largely on the strength of nimble electric vehicle automakers. BYD overtook Tesla Inc. as the world's top seller of EVs in the fourth quarter, though based mostly on China sales.

The increasing clout of Chinese automakers overseas has caused consternation in some governments, which are fearful of the repercussions for domestic automakers.

In September, the European Commission launched a probe into Chinese-made EVs over subsidies they may have received, a move branded by Beijing as "protectionist." The Biden administration in the United States is discussing raising tariffs on some Chinese goods including EVs, The Wall Street Journal reported last month.

Chinese customs officials are slated to publish trade numbers for December on Friday.

Tesla, which shipped 344,078 China-made EVs overseas last year, also contributed to the export boom.

China's auto market, the world's biggest, chugged along in 2023, with light-vehicle sales rising 5.3 percent to 21.93 million for the third consecutive year of growth amid a bruising price war as camakers wooed consumers unnerved by a faltering economic recovery.

Sales of full battery-powered vehicles in China climbed 21 percent last year after a 74 percent jump in 2022. Sales of plug-in hybrids, more affordable than full EVs, grew 83 percent in 2023 after a 161 percent surge a year earlier.

The share of sales generated by Chinese brands is expected to increase to 63 percent in 2024 from 56 percent last year, bolstered by strengthening brand recognition in the EV segment and a rapid electrification of the industry, UBS auto analyst Paul Gong told a roundtable on Tuesday.
 

BYD, which is 7.98 percent owned by Warren Buffett's Berkshire Hathaway, has expanded aggressively in Southeast Asia and Europe, although most of its deliveries are in China, where it has spurred sales with hefty incentives to dealers.

Tesla, however, operates with more efficiency in China, selling far more EVs per store than BYD.

French auto brands lost the most ground in China in 2023 with sales down 41 percent, according to data for the first 11 months of the year. Sales of Japanese cars skidded 11 percent while U.S. brands saw sales decline 1.4 percent. In contrast, German vehicle sales rose 2.5 percent while those for Chinese cars jumped 16 percent.

Competition is only expected to heat up further.

Popular Chinese smartphone maker Xiaomi took the wraps off its first EV last month and promptly announced it was aiming to become one of the world's top five automakers.