[차이나 뉴스&리포트]Thanks to Russia… China overtakes Japan to become the number one car exporter

China overtook Japan to become the world’s largest car exporter in the first quarter of this year. Demand for electric vehicles has increased and exports to Russia have increased. At this rate, it is expected to become first in the world annually.

According to Nikkei Asia on the 21st, the China Association of Automobile Manufacturers announced that China’s automobile exports in the first quarter of this year (January-March) increased by 58% year on year to 1.07 million units.

According to the Japan Automobile Manufacturers Association, Japan exported 950,000 units during the same period, an increase of only 6% compared to the same period last year.

The biggest force behind China’s rise as a strong car exporter was the electric car. The Chinese government has been actively developing charging infrastructure and providing purchase and tax incentives for the transition to electric vehicles.

Exports of new energy vehicles, including electric vehicles, increased by 93% year on year to 380,000 units in the first quarter. New energy vehicles account for around 40% of total car exports.

By manufacturer, Tesla China (90,000 units) was first in new energy vehicle exports, followed by SAIC Motors (50,000 units) and BYD (30,000 units) in second and third place, respectively.

China’s automobile exports continued to rise in the second quarter. The industry predicts that this year’s exports will record 4 million units, surpassing Japan’s annually.

China overtook Germany last year to become the world’s second-largest car exporter. Initially, it was expected that it would take several more years to become the largest exporter, but as exports to Russia increased, that time was shortened.

In the case of Chinese cars, Russia was the largest exporter in the first quarter. Exports reached 140,000 units, more than three times higher than the previous year.

After Russia invaded Ukraine in February last year, global carmakers such as Toyota and Volkswagen closed their factories in Russia and withdrew from the market en masse.

The void was filled by Chinese car manufacturers. In particular, Chery Motors and Changcheng Motors expanded their sales in Russia. Both were funded by sources linked to Chinese municipalities.

China exported nearly 30,000 trucks that could be used for military purposes to Russia in the first quarter. It is seven times more than the same period last year. After Russia, it exported a lot to Mexico, Belgium and Saudi Arabia.