China becomes the biggest car exporter in the world.

2023-06-11 13:32:51

Cars made in China continue to grow in popularity globally, so much so that China established itself as the world’s top exporter of automobiles in the first quarter of this year, snatching Japan’s crown and giving Korean rivals something to think about.

Data from the Korea Automobile Manufacturers Association (KAMA) reveals that China exported 994,000 vehicles in the first quarter, consisting of 826,000 passenger cars and 168,000 commercial vehicles. By comparison, Japan exported 954,000 vehicles in the first three months of 2023.

China has read the needs well:

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The Korea Times notes that China has started to export more expensive vehicles in recent years, making its vehicles more attractive in richer countries in Europe, as well as countries like the UK and Australia. In fact, the average export price per Chinese car reached BRL 80,577.55 in 2022, a significant increase of 27% compared to BRL 63,381.12 in 2018. It is possible that the average price will exceed BRL 98,265.31 this year. year.

“Last year, China became the second largest exporter, and this year, in April, it became the largest,” said Lee Hang-koo of the Korea Automotive Technology Institute. “Although China continues to expand its domestic market, ultimately to solve the supply and demand issue, it has no choice but to expand into the overseas market, as the local market is already saturated. That’s why they made this statement and embarked on an export campaign.”

Foreign companies in the country:

It’s not just vehicles from Chinese automakers that have contributed to the higher export numbers. Foreign companies like Tesla, Volvo and Mercedes-Benz also build cars in China for global markets. In fact, Tesla exported 270,000 vehicles from China last year, ranking it as the country’s third-largest car exporter.

Lee Hang-koo believes China’s proliferation of new cars will challenge Hyundai.

“Hyundai has focused on emerging markets and experienced growth, but recently the Chinese market has slumped,” he said. “The American market is doing well, but we are already a little behind in the European market. China continues to push electric and internal combustion vehicles into the export market, leaving Korean companies at a disadvantage. Hyundai has the Genesis brand, which is a luxury car brand, but at the end of the day, the company needs to compete with both internal combustion engine vehicles and EVs in the mid-to-low price range.”