What’s new: China’s exports of passenger vehicles more than doubled in the first five months as automakers expand abroad to drive growth amid escalating competition at home.
Chinese automakers exported 1.38 million vehicles from January through May, up 102% from the same period a year ago, data from China Passenger Car Association (CPCA) showed. In May, passenger car exports rose 64% year-on-year to 302,000 units.
SAIC Motor, the largest carmaker in China, sold 438,000 cars overseas during the first five months, up 47.7% from a year ago. Electric car giant BYD Co. Ltd. exported 63,800 vehicles during the period, exceeding its 2022 export total.
Although new-energy vehicles (NEVs) still account for a smaller proportion of China’s auto exports, growth has been accelerating quickly, according to the CPCA. In May, China’s NEV exports totaled 92,000 units, up 135.7% from a year earlier and accounting for 30.5% of total auto exports.
The context: The auto sector has been a bright spot for Chinese exporters this year as weakening global demand weighs on the world’s second-largest economy.
During the first five months, overseas shipments of Chinese cars amounted 266.8 billion yuan ($37.5 billion), up 124% year-on-year, according to the General Administration of Customs. In May, vehicle exports hit a record for any single month of $9 billion.
Automakers in China are pushing to expand sales abroad amid slowing sales and a brutal price war in the domestic market. The surge has also been driven by the popularity overseas of Chinese electric vehicles.
China overtook Japan as the world’s top auto exporter in the first quarter. Analysts said they expect China’s auto exports to top 4 million vehicles for the first time this year after breaking through 3 million in 2022.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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