China’s prominence in global automobile exports surged, solidifying its position as the world’s top vehicle-exporting economy. In July, overseas shipments rose by 63%, amounting to 310,000 vehicles, compared to the previous year. This uptick brought the cumulative total to an impressive 2.65 million units over the first seven months of 2023.
Data from the China Passenger Car Association (CPCA) reveals 80% (248,000 units) of July’s exports came from local brands. This trend reflects China’s burgeoning automotive sector as it outpaces Japan. Recent data shows China leading by 15.8% over Japan, with 2.34 million vehicles exported during the first half of the year. For perspective, Japan reported 2.02 million exports through the Japan Automobile Manufacturers Association, with its total 2022 exports at 3.5 million.
While July’s growth represented a 24.4% decline from June’s 410,000 units, experts anticipate a potential resurgence as Chinese vehicles find favor among consumers in developing nations.
The Chinese automobile market adapts rapidly to international demands. Notably, Chinese manufacturers like Hozon New Energy Automobile and the renowned Great Wall Motor prepare to produce right-hand drive vehicles for markets such as Indonesia. Great Wall Motor, China’s top SUV manufacturer, plans to introduce models like the Tank 500 and Haval H6 to Indonesian consumers.
The CPCA hasn’t released exact figures for electric vehicle (EV) exports for July, but projections look promising. A Canalys forecast from June expects China’s overseas electric and plug-in hybrid vehicle sales to reach 1.3 million units by 2023, a significant leap from 679,000 units in 2022. This uptrend could boost the overall numbers, with combined shipments of petrol and battery-powered vehicles estimated at 4.4 million units, up from 3.11 million the previous year.
Chinese EVs, described as “value for money” and of “high quality,” can rival many foreign brands. With China housing around 200 EV manufacturers, the race is on to produce innovative, environmentally-friendly vehicles. UBS predicts that EV sales within China could see an increase of 35%, reaching 8.8 million units this year.
China’s robust car exports contrast with its declining commodity exports. July marked the third consecutive month of decline, with a 14.5% year-on-year decrease, amounting to US$281.76 billion, the most significant drop since February 2020, according to official customs figures.
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