Investing.com - China has announced its position as the world leader in car exports, surpassing Japan during the first quarter of this year. Official data released recently shows that China exported a total of 1.07 million vehicles between January and March, marking a significant increase of 58% compared to the same period last year.
Meanwhile, Japan's vehicle exports reached only 954,185 units with a modest growth rate of just 6% over the previous year. The primary factors driving China's export boom include strong demand for electric vehicles and increased sales to Russia.
In fact, last year saw China outpace Germany to become the second-largest car exporter globally. According to statistics from China's General Administration of Customs, Chinese automakers shipped out around 3.2 million vehicles in total throughout last year while Germany trailed behind at roughly 2.6 million vehicle exports.
The global transition towards greener energy sources has significantly contributed to the rapid expansion of China's automotive industry. During Q1 alone, new energy vehicle (NEV) exports—which encompass electric cars—rose by an impressive margin exceeding 90% when compared against figures from just one year prior.
Amongst top NEV exporters are prominent companies such as Tesla's Chinese division; SAIC Motor Corp Ltd (SS:600104) - responsible for MG brand ownership; and BYD (SZ:002594) – which is supported by renowned US investor Warren Buffett himself. Elon Musk’s Tesla Inc (NASDAQ:TSLA) operates an immense manufacturing facility located within Shanghai that caters not only to Japanese markets but also European regions.
This "Gigafactory" currently boasts an annual production capacity totaling approximately 1.25 million vehicles—a figure set for further expansion under company plans outlined by Musk himself. Just last month, Tesla began manufacturing Model Y sport utility vehicles designated specifically for Canadian exportation purposes.
Additionally, China has experienced a surge in exports to Russia ever since the onset of the Ukrainian conflict. Western nations have imposed trade sanctions on Moscow in response, effectively opening up market opportunities for Chinese car manufacturers such as Geely, Chery, and Great Wall. These companies have witnessed notable growth within Russian markets following Volkswagen (ETR:VOWG_p) and Toyota's withdrawal from the country amid escalating tensions over Ukraine.