China overtakes Japan as world's top car exporter

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Worker on the assembly line of electric vehicles at a factory of Dayun Automobile in Yuncheng, Shanxi Province, China.Image source, Getty Images

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The jump in China's car exports was boosted by rising demand for electric vehicles and increased sales to Russia

By Peter Hoskins

Business reporter

China says it has become the world's biggest exporter of cars after overtaking Japan in the first three months of the year.

Officials figures show China exported 1.07m vehicles in the period, up 58% compared to the first quarter of 2022.

At the same time Japan's vehicle exports stood at 954,185, after edging up 6% compared from a year earlier.

The jump in China's car exports was boosted by rising demand for electric vehicles and increased sales to Russia.

Last year, China overtook Germany to become the world's second largest car exporter.

According to China's General Administration of Customs, China exported 3.2m vehicles in 2022, compared to Germany's 2.6m vehicle exports.

The shift away from fossil fuels has helped fuel the rise of China's motor industry.

First quarter exports of new energy vehicles (NEVs), which includes electric cars, rose by more than 90%, compared to a year earlier.

Tesla's China arm, SAIC - the owner of the MG brand - and BYD, which is backed by veteran US investor Warren Buffett, are among China's top exporters of NEVs.

Elon Musk's electric carmaker has a huge manufacturing plant in Shanghai which exports to regions including Japan and Europe.

The 'Gigafactory' currently capable of producing 1.25m vehicles a year, and the company is planning to increase that capacity further.

Last month, it started making Model Y sport utility vehicles for export to Canada.

China has also seen exports to Russia surge since the start of the Ukraine, as Western countries imposed trade sanctions on Moscow.

Last, year, Chinese carmakers - including Geely, Chery and Great Wall - saw their market share in Russia jump after rivals including Volkswagen and Toyota quit the country following the invasion of Ukraine.

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