Beijing: China has overtaken Germany to become the world's second-biggest car exporter after mainland exports surged 54.4% year-on-year to 3.11 million vehicles in 2022, according to the China Association of Automobile Manufacturers. (CAAM).
Analysts predicted that in the next few years, the country would overtake Japan to become the world's top car exporter in terms of export volume.
Japanese automakers shipped 3.2 million vehicles overseas in the first 11 months of 2022, almost unchanged from the same period last year, according to Marklines, a data provider for the automotive industry.
Japan exported 3.82 million cars in 2021, and once its full-year results are tallied, it is forecast to show a year-over-year decline. According to the German Association of the Automotive Industry, Germany exported 2.61 million cars last year, a 10% increase from 2021. (VDA).
As a result of its passenger and commercial vehicles being well received by people outside the mainland, China has gained a reputation as a powerful automaker, according to Cao Hua, a partner at private equity firm Unity Asset Management.
"China's electric cars have seized a huge share of the market in some developing countries and will eventually propel the country to the top spot among the world's leading auto exporters."
According to CAAM, exports accounted for 11.5% of mainland China's total 2022 production of passenger cars and commercial vehicles, up 3.4% year-on-year to 27 million.
Foreign automakers such as Volkswagen, General Motors, BMW and Mercedes-Benz have long dominated China's auto market, which has been the largest in the world since 2009.
The country's domestic brands such as BYD and Geely are scaling up their global operations with the help of a strong automotive supply chain.
According to CAAM data, EV shipments will grow 120% year on year to 679,000 in 2022, contributing significantly to China's booming car exports.
According to Gong, the Chinese auto industry's push into the world is not just the beginning. In some Southeast Asian countries, they already hold the dominant market position.
In the second quarter of 2022, BYD, backed by Warren Buffett's Berkshire Hathaway, will oust Tesla as the world's leading EV maker.
To boost overseas sales, the company introduced the Eto 3 electric sport utility vehicle as its first passenger vehicle in India in early October. Currently, it sells its automobiles in several international markets including Brazil, Singapore and Norway.
Also Read: Reasons Pakistan's Economy Is A Basket Case
According to a Bloomberg News report, BYD is also looking at building a battery plant in the US, although it has no immediate plans to sell its electric vehicles there.