The automotive sector is one of the most important industries that plays a major role in the global economy, especially with the great developments taking place in this sector in light of the readiness of various car manufacturers in the world to switch to the production of electric cars in the coming years.
And the transformations taking place in the automotive industry in the world are not only limited to its transmission of electricity, but also include a change in the balance of power, in terms of the map of the countries that export the most cars in the world, with China’s strong entry into this scene.
China, which has progressed steadily in the automotive industry over the past few years, is preparing in 2023 to lead the list of the world’s most exporting countries, with expectations that it will displace Japan from this throne.
Chinese cars are on the right track
According to a recent report by Moody’s Analytics, China’s progress in exporting its cars to the world began years ago. It overtook South Korea in 2021, ranking third in terms of car exports.
In 2022, China succeeded in overtaking Germany, making it the second largest exporter of cars, while it is now approaching Japan, displacing it from the first place in the list of the most exporting countries in the world.
According to the Statista Research Foundation, the size of the global car manufacturing market reached about $2.95 trillion in 2022, while the number of passenger cars exported from Japan in that year amounted to about 4.36 million.
While Chinese customs data showed that the country exported 3.32 million cars in 2022, while Germany exported 2.65 million cars, and South Korea 2.3 million cars.
As for 2023, preliminary data shows Chinese progress in the field of car exports during the first 6 months of the year, as China exported 2.34 million cars, according to Chinese customs, while Japan exported 2.02 million cars.
Although this data is not final yet, it clearly indicates that China’s auto export numbers are on track to overtake Japan’s auto export numbers by the end of the year.
Unparalleled rapid Chinese progress
The head of the Syndicate of Used Cars Importers in Lebanon, Elie Azzi, said, in an interview with “Sky News Arabia” that the car industry, since its inception, has gone through several stages, and is currently going through a new phase entitled the complete transition to electricity, indicating that China has adopted important plans to develop The automotive industry, by supporting research and development programs, which helped it to progress at a rapid pace in this field.
According to Azzi, Chinese automakers have adopted new technologies at an unparalleled speed, and have also worked to improve their designs and manufacturing processes, and address their weaknesses, taking advantage of the many strengths that enabled them to compete with Western automakers, such as easy access to minerals and raw materials that they need. This industry needs it, in addition to cheap labor and tax breaks provided by the state.
Azzi reveals that the rise in Chinese car exports came with support from the growing demand for electric cars, and this is also another strength for the Chinese auto industry, as China has a competitive advantage in the production of lithium-ion battery cells used in electric cars, which is reflected in a decrease in the costs of car production. Electricity, pointing out that China produces more than half of the world’s lithium supplies.
Although Chinese cars have begun to spread in global markets recently, Chinese car brands still need to gain more confidence among consumers, according to Azzi. to continue its growth in the markets.
Azzi expects Chinese cars to maintain their leadership in the export markets in the coming years, and this does not mean the end of the role of Japanese, German, Korean, French and American cars. What has changed is the presence of a new strong competitor in the global market, as he put it.
The source of the greatest danger to the Chinese auto industry
For his part, car dealer Mohamed Mousa said in an interview with “Sky News Arabia Economy” that the new car market in China is currently facing headwinds, caused by economic uncertainty and tepid consumer spending in the country, and this is what prompts local companies to find new export markets, through By intensifying marketing operations in some major markets, taking advantage of the competitive price advantage that characterizes Chinese cars compared to other cars.
Musa pointed out that there are challenges for Chinese automakers in global markets, due to brand recognition issues and strong consumer loyalty to old brands.
He explained that countries such as Mexico, Saudi Arabia, Chile and Russia were among the most importing countries for cars manufactured in China in 2022, according to “S&P Global”, while the Chinese companies SAIC MOTOR and Chery ranked first and second in terms of the volume of exporting cars.
And at a time when Chinese car manufacturers are trying to gain a foothold in the global markets, with the support of improving the performance of their cars and their compliance with global safety conditions, Moussa believes that the greatest source of danger to the Chinese car industry is political interference, which may lead to a repeat of the “ban” scenario. who signed with Huawei, or even with other Chinese technology companies.
He pointed out that this factor is currently a major concern for Chinese auto companies that are expanding abroad.
2023-08-24 16:40:22
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