This Asian country is now the leading vehicle-exporting nation in the world

China has overtaken Japan as the leading vehicle-exporting country in the world. China is already the largest vehicle manufacturing nation and the biggest market for cars in the world, and now has yet another feather in its proverbial cap after pipping its eastern neighbour in vehicle exports.

Data from trade groups of both China and Japan reveal that the former has now taken a formidable lead in the number of vehicle units that are dispatched to foreign shores. Japan had been the leading exporter of vehicles for several years but in recent times, its automotive industry has had to wade through stormy waters. Exports in the first six months of this calendar year did rise by 17 per cent - to 2.02 million units, but the pace of increase in exports from China was a lot sharper.

China exported 2.32 million units in the first six months of 2023, a rise of 77 per cent over export figures within the same time frame in 2022. This is as per data from China Association of Automobile Manufacturers.

Electrifying exports

China's dominance in vehicle exports is being fuelled by increasing demand for electric vehicles or EVs and plug-in electrics in several foreign markets. Data reveals that exports of electric and plug-in electric vehicles from China increased by 160 per cent to around 530,000 units in the first six months of 2023.

With several global manufacturers dispatching units from here, as well as a battalion of local players eyeing foreign markets, the export of vehicles from China is predicted to maintain its upward trajectory.

China vs the world

China is the global leader in vehicle manufacturing, vehicle purchase and EV demand and sales. The United States is the second largest vehicle market in the world while India overtook Japan to take the third spot recently.

China's dominance in vehicle exports has also been increasing steadily and the country overtook Germany just last year to take the second spot. Exports had increased by an impressive 54 per cent in 2022 to help China challenge Japan, a challenge that has now been met with.