China Overtaking Japan as the Global Top Auto Maker in 2023 is in the Cards, With Soaring NEV Exports

Recently, the Japan Automobile Industry Association released export data, showing that Japan's automobile export volume from January to November 2023 was 3.99 million units, and the annual export volume is expected to be around 4.3 million units. This means that its position as the largest automobile export country will definitely be replaced by China.

According to data released by the China Automobile Association, China's automobile exports from January to November were 4.412 million units, a year-on-year increase of 58%.

Although China's automobile exports were still mostly traditional fuel vehicles, the export growth of new energy vehicles has been more significant.

China’s NEV exports soared more than 110% YoY to 825,000 units in the first three quarters of 2023.

Russia has become the largest export destination for Chinese automobiles. Due to the impact of the Russia-Ukraine war, American, Japanese and European car manufacturers have withdrawn from the Russian market, while Chinese car companies seized the chance to penetrate into the Russian market. From January to October 2023, China exported 730,000 cars to Russia, seven times the same period of 2022.

Mexico was the second largest export destination. From January to October, China's automobile exports to Mexico were 330,000 units, an increase of 71%. This is also an important springboard for Chinese car companies to enter the North American market in the future.

For a long time, Japan has occupied the number one position in global automobile exports. The last time it lost its dominance was when it was surpassed by Germany in 2016. Although Japanese car makers are the leading players in the era of gasoline vehicles, they have lagged far behind in the transformation to electrification.