According to official data released on Wednesday, China surpassed Japan to become the world’s largest vehicle exporter last year thanks to its worldwide leadership in electric vehicles.
Giants from Japan, like Toyota and Nissan, have resorted to hybrid cars rather than EVs, showing far more caution than their Chinese rivals, like BYD.
The Japan Automobile Manufacturers Association revealed statistics on Wednesday that showed shipments of automobiles, lorries, and buses increased by 16 percent to 4.42 million in the previous year.
However, according to data released this month by the China Association of Automobile Manufacturers, China exported about 500,000 more cars overall, or 4.91 million in total.
With one in three completely electric vehicles, China’s customs office estimated the number to be even higher at 5.22 million, a staggering 57 percent increase from the previous year.
In addition to exporting more cars than Japan on a monthly basis, the country was also the top exporter of automobiles for a whole year, according to figures released on Wednesday.
In contrast to Chinese companies, Japanese manufacturers, such as Toyota, which was reaffirmed on Tuesday as the largest corporation globally based on unit sales, also produce enormous quantities of automobiles abroad.
2022 saw 7.84 million vehicles produced in Japan (excluding motorbikes), whereas over 17 million were produced elsewhere.
With vehicles like the Toyota Prius, Japanese automakers have long banked on hybrids—vehicles that mix internal combustion engines and battery electricity.
To improve, though, Toyota has committed to selling 1.5 million EVs a year by 2026 and 3.5 million by 2030.
The business also hopes to mass-produce solid-state batteries that will increase the range of electric vehicles and charge more quickly than traditional ones.
With significant government backing, Chinese electric vehicle companies have outperformed more seasoned competitors like General Motors, Volkswagen, and Toyota.
According to data released this month, BYD even overtook Tesla as the company with the highest sales of all-electric vehicles in the fourth quarter of 2023.
BYD, which stands for “Build Your Dreams,” announced on Tuesday that it anticipates its net profit for the previous year to be between 29 and 31 billion yuan ($4.1 and 4.4 billion). BYD also supplies batteries to companies like Tesla, BMW, and Mercedes.
Regulators in Western markets are concerned about unfair competition for domestic automakers, which has put China’s companies in hot water despite their success with EVs.
The European Union may impose import charges as a result of the European Commission’s investigation into Chinese state subsidies.
BYD intends to construct new overseas facilities, including a $600 million one in Brazil and another in Hungary, in an effort to allay worries.
As an auto analyst at CLSA, Christopher Richter compared it to what occurred to Japan in the 1980s when they began exporting more automobiles.
In order to tackle the problem, the Japanese began to establish several industries abroad. Four times as much is built abroad as is exported, he stated in October.