China surpasses Japan to become world's largest car exporter

China surpassed Germany as the world's second-largest car exporter in 2022. Back in 2009, China overtook the United States to become the world's largest market for new vehicles.  

This sharp rise in Chinese auto exports has been primarily due to increased demand for electric vehicles and sales to Russia. Belgium, Australia, and Thailand are among the top destinations for Chinese-made new energy vehicles.

According to experts, the ongoing transition from fossil fuels to clean energy has marked the rise of China's automobile industry. Motor vehicles contribute largely to global warming by the release of planet-warming gas carbon dioxide. In the midst of rising temperatures, electric vehicles are being promoted as a critical solution in the fight against climate change. 

The reports add that exports of new energy vehicles (NEVs) — primarily electric cars — grew by more than 90 percent over the previous year in China. Tesla's China arm (90,000 units), SAIC motor (50,000 units), and BYD (30,000) are the top NEV exporters in China. 

Elon Musk has also established a massive electric car manufacturing plant in Shanghai. Tesla's Gigafactory exports to different countries, including Japan and Europe.

The plant can currently produce 1.25 million vehicles per year, with Tesla aiming to increase this capacity further. In addition, the company has begun producing Model Y sport utility vehicles, which will be exported to Canada in the coming months.

Furthermore, as Western countries imposed trade sanctions on Moscow, China began exporting to Russia shortly after the Ukraine war began.

In 2022, Chinese automakers such as Geely, Chery, and Great Wall saw their market share in Russia increase after companies such as Volkswagen and Toyota withdrew from the country following Ukraine's invasion.