China has always been one of the major countries which has participated in the world of import and export. Presently, the manufacturing capability of the country is so high that even the other capitalistic forces are feeling threatened by the expansion of China’s business. It has been seen that in the very first three months of this year, China has managed to become the world’s largest exporter of cars. Before this, Japan had been holding the position.
It is indeed commendable that China has been able to overtake Japan in the field in which the latter had held expertise over so many years. The official figures have disclosed that China has exported over 1.07 million vehicles over the last few months. This value is about 58% of the value when compared to the first quarter of 2022.
At the same time, Japan has stood quite close to the competition. The export values are nearly 954,185 but this has only edged up by A5 when compared to the last year. The major boosts to the export system of China were provided by the sale of electric cars in Russia. The large number of contracts from the other Asian giant has indeed pushed China to new limits, unknown to the venture capitalists in the past.
Reports From China
Just last year, it had been reported that China had been able to take over Germany and it then held the position of the world’s second-largest car exporter. According to the reports of the General Administration of Customs of China, the nation exported about 3.3 million vehicles in the year 2022.
Germany lost by a huge margin because it had been able to export only 2.6 million vehicles in the same year. The shift in the trends which has taken the buyers to more sustainable vehicles is the main reason for fueling the rise of the motor industry in China. With time, it can be seen that China has taken a huge margin over Japan in terms of vehicular export.
Reasons For Such Popularity
Most buyers are looking into sustainable cars which can help to protect the government. This includes the new energy vehicles including electric cars which rose more in demand over the previous years. As compared to the year earlier, the demand for electric cars has increased by almost 90%. The branch of Tesla in China has been one of the major players in the game of increasing the number of exported cars from the nation. The owner of the MG brand is leading the Tesla wing in China and it is also backed up by one of the veteran US investors, Warren Buffet. These names have made the dent as the top exporters of new energy vehicles from China.
The Gigafactory set up by Tesla in China alone can produce about 1.25 million vehicles per year. The company is trying to increase its capacity based on the current demands. Last month, the same factory started the production of Model Y sport utility vehicles which will be exported to Canada after they are completely made. China has also been providing vehicles to Russia. This surge started when the Ukraine war was just on the brink. The Western nations had imposed certain trade sanctions on Moscow which led to the proper export of cars from China only. This boosted the sales to a great degree.
Change In World Market
The very last year had been a game changer for Chinese carmakers like Gesly, Cherry, and Great Wall. They had seen their market shares rise in Russia after rivals like Volkswagen and Toyota refused to continue business on account of the Russia-Ukraine war. Thus, the strategic decision of China to continue business no matter what has been fruitful for these organizations. The market shares have seen a continuous rise during this era and thus, Japan was overtaken quite easily. This is just the beginning of this year.
China has always been one of the toughest competitors in the world market. From the production of raw materials to the complete products, all of the manufacturing values will always be on the side of China. A certain damage was observed when the nation was at the crux of the pandemic. Gradually, the misconceptions were removed and China regained its previous stature as a giant in the capitalistic market.
The trend of shifting towards new energy vehicles is indeed something that is to be praised. Other nations should take a leaf out of China’s book and try to decide on modern strategies which will improve their personal game. Shifting towards new energy vehicles can be a new direction for the world in general as these are way more sustainable and they can help human civilization to thrive without causing damage to natural resources.