China Surpasses Japan as Largest Auto Exporter in 2023

Summary

  • China was predicted to surpass Japan as the leading auto exporter in the world by 2023.
  • Notable native enterprises like Chery, SAIC, Geely, and BYD largely contributed to this development.
  • 18 international brands such as Tesla also played significant roles, contributing to 22% of the overall 4.1 million auto exports from China.
  • Tesla shipped out 344,000 EVs from its Shanghai factory, the largest globally, to various regions including Asia, Europe, Australia and New Zealand.
  • Legacy international brands including Ford Motor and General Motors saw a 21% increase in exports.
  • Brands such as Ford and South Korea’s Kia Corp are reevaluating their strategies in China to boost car exports.

China Crowned as the World’s Largest Auto Exporter

In 2023, China was projected to outpace Japan to become the globe’s top car exporter, driven considerably by agile domestic firms like Chery, SAIC, Geely, and BYD (SZ:).

Foreign Brands Contributing to China’s Auto Exports

18 overseas brands, headed by Tesla (NASDAQ:), exported 910,000 vehicles from China in that year, making up for 22% of the total 4.1 million auto exports from the country. This data is according to the China Association of Automobile Manufacturers (CAAM).

Tesla: A Major Exporter in China

Tesla by itself exported 344,000 electric vehicles from its largest plant based in Shanghai, shipping to Asia, Europe, Australia, and New Zealand.

The Role of Ford Motors and General Motors

The prominent exporters, Ford Motor (NYSE:) and General Motors (NYSE:), recorded an increase in their combined exports by 21% from the previous year.

Brands Revising Their China Exports Strategy

Heritage overseas brands are presently amending their strategies in China to enhance their exports.

One such strategy involves Ford’s export of 69% of its Territory SUV, designed especially for the Chinese market.

Simultaneously, South Korea’s Kia Corp dramatically increased its China’s car exports, and Japanese and German brands also amplified their exports from China.

In regards to trading, the increased exports of vehicles from China may potentially influence the Forex market, especially on assets related to the Chinese Yuan and the stocks of these auto manufacturing companies.

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