China is poised to claim the title of the world’s largest car exporter in 2023, surpassing Japan for the first time in history. This is according to a new report by the International Automobile Manufacturers Association (IAMA), which projects that China will ship 9.8 million vehicles abroad this year, compared to Japan’s 9.2 million.
The report attributes China’s remarkable rise in the global car market to several factors, including its massive domestic demand, its diversified product portfolio, its competitive pricing, and its strategic investments in emerging markets. China has also benefited from the recovery of the global economy after the COVID-19 pandemic, which boosted consumer confidence and spending.
One of the key drivers of China’s car export success is its strong performance in the domestic market, where it has a dominant position. According to the China Association of Automobile Manufacturers (CAAM), China sold 25.3 million cars in 2022, accounting for 28% of the global car sales. China’s car market is also highly diverse, with a wide range of brands, models, and segments to cater to different consumer needs and preferences.
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What are the top car brands in China? According to the CAAM, the top five car brands by sales volume in 2022 were SAIC (4.2 million), Geely (3.1 million), FAW (2.9 million), Dongfeng (2.7 million), and Changan (2.5 million). These brands are all Chinese-owned and have a strong presence in both the conventional and electric vehicle segments. Some of these brands have also established joint ventures with foreign carmakers, such as SAIC with Volkswagen and General Motors, FAW with Toyota and Audi, and Dongfeng with Nissan and Honda.
China’s car exports have grown steadily over the past decade, from 4.3 million in 2013 to 8.4 million in 2022, an average annual growth rate of 7.6%. In contrast, Japan’s car exports have declined from 10.1 million in 2013 to 9.2 million in 2022, an average annual drop of 1.2%. Japan has faced challenges such as an aging population, a shrinking domestic market, a strong yen, and increased competition from other Asian countries.
The IAMA report predicts that China will maintain its lead over Japan in the coming years, as it continues to expand its production capacity, improve its quality standards, and innovate its technology. China is also expected to increase its share of the electric vehicle (EV) market, which is projected to grow rapidly in the near future. The report estimates that China will account for 40% of the global EV sales by 2025, up from 28% in 2022.
The report states that China accounted for 38% of the global sales of industrial robots in 2022, followed by Japan with 19%. The gap between the two countries has widened since 2019, when China had a 32% share and Japan had a 22% share. The report attributes China’s success to its large domestic market, its strong government support, its investments in research and development, and its strategic partnerships with leading international players.
The report also forecasts that China will maintain its lead over Japan in the coming years, as it aims to achieve its goal of becoming a world leader in artificial intelligence by 2030. The report estimates that China will increase its spending on AI from $12 billion in 2022 to $70 billion in 2030, while Japan will spend $8 billion in 2022 and $25 billion in 2030. The report predicts that China will have a 28% share of the global AI market by 2030, compared to Japan’s 12%.
The report concludes that China’s rise as a powerhouse of machine automation poses both opportunities and challenges for other countries, especially Japan. The report suggests that Japan should leverage its strengths in quality, innovation, and collaboration, and seek new markets and niches to remain competitive and relevant in the industry.
The report concludes that China’s car export boom will have significant implications for the global automotive industry, as it will reshape the competitive landscape, create new opportunities and challenges for other players, and influence consumer preferences and behaviors. The report also suggests that China’s car export success will have broader economic and geopolitical ramifications, as it will enhance China’s influence and soft power in the world.