Chinese carmakers are confident they will overtake Japan as the world’s top auto exporter this year. The country’s car exports could reach up to 4.5 million units in 2023, up by nearly 30% from last year’s 3.11 million units. This would make China the world’s leading car exporter, ahead of Japan, whose exports fell nearly 8% year on year to 3.5 million units in 2022. At the Shanghai Auto Show, which began on April 19, over a dozen Chinese car manufacturers, including SAIC Motor, Chery Automobile, Geely, BYD, and GAC Motor, were showcasing their products to overseas markets, many of which were from Southeast Asia, South America, and Africa. While there is still some skepticism among industry executives about whether China can achieve the 4.5-million-unit target, the outlook for the country’s carmakers remains positive. The rapid expansion of China’s EV market is driving the growth of the country’s auto exports, with many foreign dealers showing keen interest in Chinese-made EVs. Some Chinese EV brands, like Jetour and Zeekr, are already taking pre-orders for their models in Europe and plan to have a presence in most of western Europe by 2026.

 

The rise in Chinese car exports would also help EV makers to ride out slowing sales growth at home, where a bruising price war has failed to whet consumers’ buying appetite. Chinese carmakers have been engaged in an intense price war spearheaded by Tesla, which has hurt sales and profitability since late last year. However, some industry executives at the Shanghai Auto Show predicted that the heavy discounting would last for another two months amid weak consumer demand. If Chinese carmakers succeed in overtaking Japan as the world’s top auto exporter, it would be a significant development for the Chinese economy. For many years, China has been the world’s largest producer and consumer of cars, with a domestic market that is many times larger than that of Japan. The country’s auto industry has been growing rapidly, and it now accounts for around 28% of global car production. By becoming the world’s top auto exporter, China would consolidate its position as a major player in the global auto industry.

 

The effects of this development on the Netherlands could be significant, as the country is a major hub for international trade and transportation. The Netherlands is one of the most important transit countries in Europe, and its ports are among the busiest in the world. Dutch companies are already involved in the Chinese car industry, with many of them supplying components and technologies to Chinese carmakers. If Chinese car exports continue to grow, Dutch companies could benefit from increased demand for their products and services. In addition, the rise of Chinese car exports could also have implications for the European auto industry. China’s expanding presence in the global auto industry could lead to increased competition with European carmakers, particularly in the EV market. The Chinese EV market is already dominated by homegrown brands like BYD, Nio, and Xpeng, which have been expanding rapidly in recent years. As Chinese carmakers increase their exports to Europe, they could challenge the dominance of European carmakers in the region, particularly in the luxury car segment.

In conclusion, the growth of China’s auto exports is a significant development that could have far-reaching implications for the global auto industry. If Chinese carmakers succeed in overtaking Japan as the world’s top auto exporter, it would be a major milestone for the country’s auto industry and a reflection of its growing manufacturing and technological capabilities. The effects of this development on the Netherlands and the European auto industry could be significant, with Dutch companies potentially benefiting from increased demand for their products and services, while European carmakers could face increased competition from Chinese brands.