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China could soon become the world’s largest exporter of vehicles, thanks in part to thriving demand for its raft of new electric vehicles.

No less than 3.11 million vehicles were exported from China to overseas markets in 2022. This consisted of 2.53 million cars and 580,000 commercial vehicles and represented a huge 54.4 per cent increase from 2021, figures from the China Association of Automobile Manufacturers (CAAM) reveal. By comparison, car manufacturers in Japan shipped 3.2 million vehicles overseas in the first 11 months of 2022. Full year results are not yet available.

Japan is expected to post a year-on-year decline in vehicle exports having previously exported 3.82 million vehicles in 2021.

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China Tipped To Overtake Japan As World’s Largest Car Exporter

A research report from Citic Securities suggests that China could export as many as 5.5 million vehicles in 2030. Of these, some 2.5 million could be EVs.

“Rising exports are a clear sign that Chinese carmakers’ development and manufacturing capabilities have largely improved following four decades of efforts,” chief executive of the Shanghai Mingliang Auto Service consultancy Chen Jinzhu told the South China Morning Post. “Chinese companies like BYD and Geely will become strong contenders in the global automotive market.”

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The number of pre-owned vehicles being exported from China is also expected to increase. The Ministry of Commerce recently revealed that it would simplify the vehicle transaction process and streamline customs clearance procedures to facilitate a higher number of used vehicles being exported.

“As the Chinese domestic auto market keeps growing, so will the number of old vehicles,” associate dean of the School of Finance at Renmin University, Zhao Xijun, said. “In the past they would be sold in the cities and taken into the countryside because the rural areas were less developed. Now, as the countryside keeps developing, there is less interest, so used cars are instead shipped offshore to developing countries.”

The auto industry provides one in every six jobs in China and exports increased despite slowing domestic sales in the latter half of 2022.

China Tipped To Overtake Japan As World’s Largest Car Exporter