China surpasses Japan as world’s largest car exporter in 2023

Picture courtesy of Lenny Kuhne, Unsplash

China has seized the title of the world’s largest car exporter in 2023, according to recent industry figures. This marks a significant shift, seeing Japan’s reign topple for the first time since Germany’s lead in 2016.

This new data, released yesterday, January 31, by a Japanese trade organisation, indicates a 16% increase in Japan’s car exports from the previous year, reaching 4.42 million vehicles. However, this was surpassed by China’s remarkable 58% rise to 4.91 million vehicles.

The surge in China’s automobile exports can largely be attributed to the burgeoning demand for all-electric vehicles (EVs) globally, aimed at reducing carbon emissions. Chinese automakers such as BYD (Build Your Dreams) Co. have significantly increased their exports, bolstered by substantial support from the Chinese government, reported Bangkok Post.

Furthermore, China’s exports of petrol-driven cars to Russia experienced a boost after the withdrawal of Japanese, United States, and European automakers from the market due to the ongoing conflict in Ukraine.

On the other hand, Japan’s car exports showed growth for the first time in two years, however, they still fell short of the pre-Covid-pandemic figure of 4.82 million vehicles in 2019.

Japanese automakers have been reassessing their production strategies in recent years. Companies like Toyota Motor Corp. have been shifting their focus away from petrol-powered cars, instead opting to increase sales of petrol-electric hybrids, which often boast higher mileage than pure EVs.

However, holding onto the top spot could be a challenge for China, as recent trends suggest a slowdown in global EV sales due to high prices and a scarcity of charging stations, according to industry experts.

In related news, in a move set to ignite Thailand‘s automotive industry, four major Japanese car giants are gearing up to pump a staggering 150 billion baht into manufacturing electric vehicles in the country.

This collaboration underscores Thailand’s ascent as a powerhouse in the automotive world and spotlights the government’s triumphant push towards an electrifying future.

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

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