Driven by the global growth of electric vehicle sales, China has emerged as the world's largest exporter of new cars in the first quarter of this year, surpassing Japan to claim the top spot. China exported 1.07 million vehicles in Q1, representing a 58% year-on-year increase, while Japan exported 950,000 vehicles, with a growth of 6% year-on-year.
The significant growth in China's automotive exports can be attributed, in large part, to its sales in the Russian market. As major global automakers were withdrawing from the Russian market, Chinese automakers seized the opportunity. At the beginning of this year, China's car exports to Russia doubled, reaching 140,000 vehicles.
Furthermore, China's exports of electric vehicles nearly doubled in the first quarter of this year, reaching 380,000 vehicles, accounting for nearly 40% of all exported vehicle types. In contrast, Japan has been slower in investing in the electric vehicle sector, which may result in the loss of market share in Southeast Asian countries.
Currently, China's top three export markets are Belgium, Australia, and Thailand. While Japanese automakers have traditionally dominated the Southeast Asian market, China's electric vehicles could help gain a foothold in emerging markets in Southeast Asia.
However, the substantial increase in China's export volume is not solely driven by domestic Chinese brands. It also includes exports from Tesla's Shanghai factory to overseas markets such as Canada.
