Japan Is No Longer The World's Biggest Car Exporter

In a major shift, China has dethroned Japan to become the world’s largest exporter of cars. 

What Happened: The first quarter saw an impressive 58% surge in China’s car exports, reaching a staggering 1.07 million vehicles. China now holds the top spot, followed by Japan and Germany, a BBC report noted, citing official government statistics.

Japan’s vehicle exports reached 954,185 in the first quarter, showing a 6% increase from a year earlier.

This surge in Chinese car exports can largely be attributed to the growing popularity of electric vehicles. China dominates the global production of lithium-ion batteries, which power 75% of EVs worldwide. Leading the charge are Tesla Inc‘s TSLA China arm, state-owned automaker SAIC Motor and Warren Buffett-backed BYD Co Ltd BYDDY BYDDF, who are the top exporters of New Energy Vehicles (NEVs) in China.

Another contributing factor to China’s rise as an exporter is the void left by automakers retreating from the Russian market after the Ukraine invasion. Renowned companies like Toyota Motor Corp TM and Volkswagen AG VWAGY pulled out, creating an opportunity for Chinese automakers to fill the gap.

Why It Matters: The significance of this shift extends beyond exports, as China’s domestic EV market is also experiencing remarkable growth. Despite a 13% decline in overall passenger car sales in the first quarter, EVs and plug-in hybrids saw a 22% increase in sales.

In a bid to bolster the EV industry, China has recently proposed expediting the construction of charging facilities for electric vehicles and enhancing policies to promote their purchase and usage.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read More: Tesla Investor Tells Why ‘Badass’ Cybertruck Could Blow Away Demand Expectations

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsTop StoriesTechChinaelectric vehiclesEVsJapanmobilityNEVs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!