China has become the world's biggest exporter of cars after surpassing Japan in the first three months of the year. The country still continues to report growth in vehicle exports in the coming months.
(Photo : STR/AFP via Getty Images)
This photo taken on October 14, 2019 shows Chinese-made cars waiting to be loaded on a ship for export, in Lianyungang, in China's eastern Jiangsu province. - China's imports and exports fell more than expected in September, official data showed on October 14, as US tariffs and cooling demand at home and abroad hit trade in the world's second largest economy.
Becoming Top Exporter in the World
The China Association of Automobile Manufacturers provided official figures that prove China has now become the world's top exporter of cars. According to a report from Interesting Engineering, China delivered 1.07 million units during the first quarter, which represents a 58% increase over last year's.
Compared to the figures presented by Japan last year for their first quarter exports, China surpassed the country as Japanese exports only stood at 954,185 with a 6% increase. Exports from China were boosted by demand for electric cars and sales to Russia. Meanwhile, Belgium, Australia, and Thailand are the top destinations for exported China-made energy vehicles.
Aside from this, the transition from fossil fuels has helped fuel the rise of China's automobile industry. Traditional motor vehicles continue to contribute heavily to global warming as it releases planet-warming gas carbon dioxide. Because of this, electric vehicles are being promoted as a solution to this crisis.
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South China Morning Post reported that during the Shanghai Auto Show, China Passenger Car Association General Secretary Cui Dongshu projected that car exports could top 4 million units for the first time this year. "The goal can be achieved if overall demand for vehicles abroad remains stable. Chinese automotive companies have the potential to increase their overseas sales."
Top Exporters
Among the top exporters of new energy vehicles are Tesla's China arm with 90,000 units, MG's SAIC motor with 50,000 units, and US-Backed BYD with 30,000 units. Through the help of these companies, the exports of NEVs grew by more than 90% over the previous year in the country.
As per BBC's report, China has seen an increase in exports to Russia since the start of the Ukraine war, especially that Western countries imposed trade transactions on Moscow. China-based automakers Geely, Cherry, and Great Wall saw their market jump after their competitors quit the country following the invasion, which includes Volkswagen and Toyota.
Tesla is also a big part of this milestone as Chief Executive Officer Elon Musk established a massive electric car manufacturing facility in Shanghai called Tesla Shanghai Gigafactory. This exports to different countries, including Japan and Europe.
As of the moment, Tesla can produce 1.25 million vehicles per year in the facility. But the company is aiming more as they are planning to increase this capacity further in the upcoming months or years. Model Y sport utility vehicle production has also been started by the company and will be exported to Canada in the coming months.
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