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CHINA SET TO BECOME WORLD'S LARGEST CAR MAKER
China is on track to knock Japan from the top spot for global car export volume this year. Chinese officials have released figures showing the country exported 1.07 million cars during the first three months of 2023, an increase of 58 percent compared to last year. That number pushes Japan, with 954,185 cars, to second place despite increasing its production by more than 6 percent in the same period. Germany, which previously held the second spot for passenger car exports, was surpassed by China last year it now sits in third.
China's rise in vehicle production is due to increased global demand for new energy vehicles as countries enact legislation limiting fossil fuel combustion vehicles and their emissions. In 2009, China surpassed the U.S. to become the world's largest market for electric vehicles (EV). The Chinese government helped the domestic EV industry grow by offering purchasing and tax incentives, as well as by developing charging infrastructure to bring electric vehicles into the mainstream. The shift to electrics has fueled China's rise as an auto exporting power.Elon Musk's electric carmaker has a 'Gigafactory' in Shanghai which exports to regions including Japan and Europe. It is currently capable of producing 1.25 million vehicles a year, and the company is planning to further increase capacity, but is yet to reach maximum output. The plant exports a large volume of Tesla cars to Canada, Europe and Japan.
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On the sales side. Tesla sells about a third of its cars in China. However, the company has lost its crown as the world's largest EV maker to a Chinese company called BYD. Last month, BYD launched a compact EV called Seagull, with a starting price of $11,000. In comparison, the price of a Tesla Model 3 starts from around $40,000. The growing manufacturing and technological expertise of China's domestic EV makers has seen the nation become the world's top car exporter.
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Another reason for China's recent success is the war in Ukraine and subsequent trading sanctions around the world. The withdrawal of German and Japanese competitors such as Volkswagen and Toyota from the Russian market has meant that Chinese manufacturers have been able to increase their market share simply by remaining in the race. In addition, according to predictions by the China Passenger Car Association, this year's Chinese automobile export volume will reach 4 million vehicles and is expected to surpass Japan for the whole year.
1) How much is a new compact EV selling for?A $54 400
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