GlobalWide News
The Wall Street Journal: China’s auto industry reached a significant milestone last year, surpassing Japan to become the world’s largest exporter of cars. This achievement marks a major shift in the global automotive landscape. The surge in China’s overseas auto sales, totaling an estimated 5.26 million vehicles, was largely driven by the demand for traditional gas-powered vehicles, particularly in Russia. This demand comes in the wake of Western carmakers withdrawing from Russia due to the Ukraine conflict, creating an opportunity for Chinese car manufacturers to fill the gap.
While China is known for its leadership in electric vehicles (EVs), the growth in exports was primarily fueled by internal combustion engine vehicles. This trend has been beneficial for car manufacturers operating in China, especially as the domestic market has seen a decrease in demand for gas-powered vehicles amidst the country’s push towards EVs.
The global automotive market has expressed concerns about the potential influx of Chinese vehicles, leading to actions such as the U.S. imposing significant tariffs on Chinese imports and the European Union initiating an antisubsidy investigation focused on low-cost EVs from China. However, China is adapting to these challenges and is likely to increase its export of electric and hybrid vehicles. Chinese EV makers, including BYD, which recently overtook Tesla in EV sales, are expanding their overseas presence, especially in Europe.
China’s ascension to the top spot in auto exports is a testament to Beijing’s industrial policies, mirroring its successes in other sectors like solar panels and batteries. The country’s automotive industry has evolved significantly, shifting from being dominated by foreign carmakers to a focus on domestically-produced EVs and hybrids, supported by state funding and sales subsidies. This transformation has allowed China to overtake long-established automotive leaders like Japan, Germany, and South Korea, adding to its status as the world’s biggest auto market and production center.
The entire article can be read at the link https://www.wsj.com/world/china/china-vehicle-sales-rise-further-boosted-by-stimulus-policies-sales-promotions-3452cca1
