How China Car Exports Surpass Japan to Become World's No.1?

July 3, 2024

Do you know China has become the world's largest car exporter? China CBU (completely built-up) car export number has reached 5.5 million units in 2023, which has exceeded Japan to be the No. 1 exporter in the finished vehicles market for the first time.

Today we invite Jeff Pan, Vehicle Logistics Expert at YQN Logistics, to analyze the reasons why China made a tremendous success in car exports.

YQN Video: How China Car Exports Surpass Japan to Become World's No.1?

Firstly, global logistics and vehicle market has been shifted to green logistics and green products. Since then, Chinese car makers have tried to expand in the field of EVs (electric vehicles). In recent years, they have made significant progress in terms of product design, product quality, and global service. Chinese car companies have received a good reputation in various regions, which has promoted the growth of China car exports.

Secondly, the vehicle supply chain was forced to shift to the Chinese market during the peak of Covid-19. Due to the influence of Covid-19 and the obstruction of the chip supply, the global automotive supply chain was affected. However, China did a good job in epidemic prevention and control to have maintained the car production, which drove up China car import demand in other regions.

Finally, many countries have announced government policies for providing subsidies for import and export EVs. It has promoted Chinese car makers to create and develop electric vehicles.

Based on our YQN forecast, China's car export volume will continue to increase.

Let's refer to the data from Japan. In 2023, Japan's local car sales volume increased by 13.8%, reaching 4.7 million units. The car export sales to local sales volume ratio was almost 1:1. Meanwhile, China's local car sales volume was over 30 million in 2023, with the ratio of car export sales to local sales volume being only 0.16:1. Hence, we can see a huge potential for China car exports in the coming years.

We all realize that the current global situation is quite unstable, while China’s total car export volume will still increase by 10% in the coming years. With a 10% increase ratio, China will export over 6 million units each year to keep wearing the crown among all car export countries.

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YQN Operation Team

info@yqn.com