China's Auto Exports Surge... 3 Million Units Expected This Year

Surging Momentum After Last Year's First 2 Million Units... 1.08 Million Units Exported by April
China Gains Confidence Surpassing Germany and Others in EV Technology

[Asia Economy Beijing=Special Correspondent Jo Young-shin] China's complete vehicle exports surged by 35% in May. It was also reported that cumulative Chinese automobile exports surpassed 1 million units as of May.

[Image source=Reuters Yonhap News]

Last year, China exported 2,015,000 vehicles, reaching the milestone of 2 million units. China is significant in that it produces domestic vehicles based on technology transfers from well-known overseas automakers. Within China, there are forecasts that automobile exports will approach 3 million units this year.

Chinese media outlet Pengpai reported on the 21st that the volume of Chinese automobile exports in May alone was 230,000 units, a 35% increase compared to the same month last year. It also stated that from January to May, exports totaled 1.08 million units, a 43% increase year-on-year. Pengpai emphasized that as of the end of April, China’s cumulative automobile exports surpassed Germany to rank second. The outlet added that as of the end of April, the main importers of Chinese vehicles were the United States, Mexico, Japan, Belgium, Russia, South Korea, Germany, and Australia.

The shortage of automotive semiconductor chips and supply chain instability appear to have driven China's automobile exports. Pengpai cited data from the U.S. market research firm AutoForecast Solutions, reporting that chip shortages caused a reduction of about 1.98 million units in vehicle production by major global automakers as of the end of May. It further pointed out that automobile production is expected to decrease by 2.79 million units by the end of this year.

China’s automobile exports are led by new energy vehicles such as electric cars. Chinese new energy vehicle exports through May increased by 146% year-on-year to 168,000 units. While Tesla leads Chinese electric vehicle exports, domestic automakers such as Shanghai, Dongfeng, Geely, and Chery have also joined the export market.

Within China, there is a view that while China’s gasoline and diesel vehicle production technology is difficult to catch up with Germany, Japan, and other countries, electric vehicle technology could surpass them. It is believed that once batteries fully replace internal combustion engines (powertrains), China could surpass traditional automotive powerhouses like Germany.

Pengpai noted that in Europe, a major automobile consumer market, electric vehicle subsidies of up to 9,000 euros are being offered, and that subsidy policies in Europe and other countries will provide opportunities for Chinese electric vehicle exports.

The Chinese State Council recently announced plans to establish separate support policies to encourage overseas consumers to purchase Chinese electric vehicles, indicating that the government will be directly or indirectly involved in supporting electric vehicles.

Since major automakers from Germany, South Korea, and other countries produce vehicles locally overseas, the number of Chinese complete vehicle exports and their global ranking are not very meaningful. There is no need to make a fuss about Chinese complete vehicle exports surpassing South Korea. Due to cost factors such as labor, China’s complete vehicle exports are structurally likely to continue increasing for the time being.

However, electric vehicles are different. As domestic demand for Chinese electric vehicles rises sharply, electric vehicle technology is expected to grow rapidly. With the Chinese government also stepping in, there are calls for close observation of China’s electric vehicle policies.

This content was produced with the assistance of AI translation services.