China overtakes Japan in vehicle exports, becomes number one in the world
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New Delhi : In terms of export of vehicles, China has become number one in the world by leaving its eastern neighbor Japan. According to media reports, China has overtaken Japan as the leading vehicle exporting country in the world. China is already the largest vehicle manufacturing country in the world and the largest market for cars. Now after beating its eastern neighbor in vehicle exports, it has achieved another achievement.
Export of vehicles increased rapidly in China
The report said that data from the Sino-Japanese business groups show that Japan has now taken a tremendous lead in the number of vehicle units shipped to overseas ports. Japan has been at the forefront of the world’s exports of vehicles for many years, but in recent times its automotive industry has gone through a period of severe decline. Although Japan’s overseas vehicle exports grew by 17 per cent to 2.02 million units in the first six months of the current calendar year, the pace of growth in exports from China was much faster. According to data from the China Association of Automobile Manufacturers, China is set to export 2.32 million units in the first six months of 2023, up 77 per cent from the same time frame in 2022.
China dominates the export of electric vehicles
Growing demand for electric vehicles or EVs and plug-in electrics in many overseas markets is driving China’s dominance in vehicle exports. Data shows that in the first six months of 2023, the export of electric and plug-in electric vehicles from China increased by 160 percent to about 5,30,000 units. With several global manufacturers sending units from here as well as a battalion of local companies eyeing overseas markets, there will likely be an increase in vehicle exports from China.
China number one in manufacturing, buying and selling of vehicles
China is the global leader in vehicle manufacturing, vehicle purchases and EV demand and sales. The United States is the second largest vehicle market in the world, while India has recently overtaken Japan to take the third position. China’s dominance in vehicle exports is also increasing continuously and the country has overtaken Germany to take the second place last year itself. An impressive 54 per cent increase in exports was expected in 2022 to help China challenge Japan, a challenge that has now been met.
Exports of finished vehicles in India declined
According to a media report, the export of vehicles from India has declined by 28 per cent in the first quarter of April-June in the current financial year. The Association of Vehicle Manufacturers SIAM had informed in July that India’s vehicle exports have declined due to the monetary crisis in Africa and other different developing countries. According to SIAM data, total vehicle exports stood at 10,32,449 units in the first quarter ending June 30, 2023. In the same period last year, this figure was 14,25,967 units. Total exports of passenger vehicles declined by 5 per cent to 1,52,156 units in the June quarter. At the same time, in the April-June period of last year, this figure was 1,60,116 units.
African crisis affected India’s vehicle exports
Due to the decreasing demand from abroad, the export of vehicles from the country has decreased by 28 percent in the first quarter of April-June of 2023. The latest data from SIAM, an organization of vehicle manufacturers, has revealed that a shortfall of about 4 lakh vehicles has been recorded in the country’s vehicle exports. Vehicles from India are mainly exported to African countries. Along with this, South America and West Asia are also big markets for the Indian automobile industry, but due to the weakening of some big economies of Africa, India’s automobile exports have declined.
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