China overtakes World’s top market

According to UOB Kay Hian analysts, China’s auto exports increased 58% in the first quarter to become the world’s largest car exporter for the first time ever, and the economic superpower will likely maintain its lead for the remainder of the year.

China exported 1.07 million vehicles last quarter, outpacing Japan’s 954,000 units by 12%, according to a research note using official figures from the trading firm.

Its export volume increased 75% year on year to 1.49 million in the first four months of the year.

“It was the first time China’s automobile exports surpassed Japan on a quarterly basis, and China will most likely maintain its lead in full-year 2023,” said UOB Kay Hian.

As Chinese EV companies gain traction in foreign markets, the report predicts that exports will expand their proportion of China’s EV market to 20% by 2024, up from 15% today.

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According to the report, Tesla is China’s largest EV exporter, accounting for 41% of the country’s EV export volume in the first four months of the year, however domestic manufacturers like as BYD and Shanghai Automotive Industry Corp are coming up quickly.

BYD’s exports increased by 1,727% in four months to 53,550 units, with the company aiming to ship 300,000 units this year, up from 55,000 in 2022.

From 2023 through 2025, the Shenzhen-based company is expected to transport between 250,000 and one million EVs overseas yearly, according to the brokerage.

Chinese EVs were the most popular in Europe and other areas of Asia, with Europe being the most rapidly developing market.

UOB Kay Hian, on the other hand, warned that Chinese firms may lose cost competitiveness in nations considering protectionist measures, such as France, which is set to limit its EV subsidies to just those manufactured in Europe.

Back home, the Chinese government is claimed to be supporting the domestic EV market, having recently put out plans to encourage electric vehicles in rural areas.