China’s emergence as global carmaker poses threat to Japanese and Korean brands
Hyundai and Kia, along with several Japanese car brands, have been enjoying dominance over a large number of markets across the Asian continents. Apart from that, the Hyundai Group automobile brands also have a strong presence in other global markets. However, the rapid emergence of Chinese automakers as global players are threatening to slash that dominance significantly.
Korea Automobile Manufacturers Association (KAMA) has revealed that China exported 994,000 vehicles in the first quarter of this year. This included 826,000 passenger vehicles, and the rest were commercial vehicles. In comparison, Japan exported 954,000 vehicles during the same period. Clearly, the Chinese automakers are throwing tough challenges to their rivals from the neighbouring countries, which have dominated the global automobile space for decades.
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The data also shows how China established itself as the world's top automobile exporter in the first quarter of 2023, buoyed by the rising popularity of made-in-China cars. In 2022, China became the second largest car exporter globally. This shows how the country's automobile market is growing fast. Also, China, in this process, has snatched the crown from Japan and now giving the South Korean automakers headache.
The Korea Times has reported that China has started to export more expensive cars in recent years, making its vehicles more appealing to wealthy consumers in rich countries across Europe and Australia. The report states that the average export price per Chinese car increased to $16,400 in 2022, marking a 27 per cent spike from $12,900 in 2018. It also said that the average price may exceed $20,000 in 2023.
Interestingly, the number of cars exported by China doesn't just include vehicles made by Chinese auto manufacturers. Foreign automakers like Tesla, Volvo and Mercedes-Benz that make cars in China too contributed to this number greatly. For instance, Tesla alone exported 270,000 made-in-China cars to global markets last year. The US electric car manufacturer was China's third largest car exporter in 2022.
