China is the World’s Biggest Car Exporter, Benefits from Western Sanctions on Russia
Posted on 05/23/2023
China exported 1.07 million vehicles in Q1 2023. According to the U.S. Department of Commerce, China is the world’s central player in the auto market: “China continues to be the world’s largest vehicle market by both annual sales and manufacturing output, with domestic production expected to reach 35 million vehicles by 2025.” The Chinese are also thought to be interested in a lifestyle that incorporates camping and RV’s: “With a growing demand for RVs and a shift in consumers’ travel preferences, tourism experts in China anticipate a surge in RV-related business in the coming years.” However, deteriorating trade conditions are causing skepticism that the RV’s will come from U.S. producers.
The previous title-holder for car exports, Japan, exported 954,185 vehicles. Demand from Russia helped China pull ahead. China exported 3.2 million vehicles in 2022, and electric vehicles increased by 90% year over year. Tesla and Warren Buffet’s BYD were major exporters. It’s worth noting that Buffet has been reducing his stake in BYD over several rounds of sales. Tesla has a plant in Shanghai. Furthermore, China’s exports were boosted by demand for electric cars and sales to Russia. Volkswagen and Toyota exited the Russian market following the invasion of Ukraine.
Some of China’s largest automakers include SAIC Motor Corporation Limited. Shanghai State-Owned Assets Supervision & Administration is the largest shareholder in that company. The China Investment Corporation (CIC) is also a shareholder in SAIC.
