Rising sales of electric vehicles, as well as the ability to continue dealing with Russia, helped China become the world’s biggest exporter of new vehicles in the first quarter of 2023. It overtook Japan to claim the title.
Despite losing the top spot, auto exports from the island nation grew six percent, as compared to the first quarter of 2022. However, China’s automakers shipped 58 percent more vehicles out of the country in the first three months of 2023 than they did a year earlier, reports Nikkei Asia.
The China Association of Automobile Manufacturers reports that the nation managed to export 1.07 million vehicles in all between January and March. In that same period, Japan exported 950,000 vehicles.
Read: Chinese EVs Flood Germany, Triple Share in Q1 2023
A major contributing factor to that growth was the nation’s automakers’ ability to sell vehicles in Russia. Japanese automakers joined companies from other countries politically aligned with the U.S. in pulling out of the market following its invasion of Ukraine. China’s did not, and their exports to the market tripled to 140,000 early this year.
The country’s electric expertise also helped propel its exports. Exports of Chinese EVs nearly doubled in the first quarter of the year to 380,000 units. As a result, they accounted for nearly 40 percent of all of its exports.
Whereas Chinese policies have encouraged its auto industry to invest heavily in electric vehicles, Japanese automakers have been slower to invest in the technology. That may be loosening the country’s grip on Southeast Asian markets.
Although China’s top two export markets were Belgium and Australia, its third biggest was Thailand. Japanese automakers have had traditionally dominated Southeast Asia, but China’s EVs may be helping it to build market share in the region.
However, its growing export figures are not being driven exclusively by domestic automakers. America’s Tesla has also started shipping more vehicles from its Shanghai plant to other markets, such as Canada.
