China Passenger Car Association (CPCA) has ranked China as the world’s largest auto exporter ahead of Japan for a second consecutive year in 2024, Reuters news report said.
China maintained its position as the world’s largest auto exporter in 2024, exporting 4.8 million vehicles, a 25 percent increase from the previous year, surpassing Japan for the second consecutive year.
Despite the strong growth in 2024, China’s car export growth is expected to slow to 10 percent in 2025, with electric vehicle (EV) exports projected to see no growth due to tariff pressures and market challenges.
Exports of new energy vehicles (NEVs), including electric cars and plug-in hybrids, grew by 24.3 percent in 2024, totaling 1.29 million units.
The European Union’s introduction of additional tariffs on Chinese-made EVs and a subsidy investigation contributed to slower export growth to the EU, with only a 10 percent increase in early 2024 compared to a 36 percent rise in 2023.
Russia, Mexico, and the United Arab Emirates were the top three markets for Chinese car exports in 2024, while exports to Thailand, Australia, and Britain declined.
Establishing production facilities in Europe, such as BYD’s plant in Hungary, is seen as a long-term strategy for Chinese automakers to overcome EU tariffs and expand their market share.
Domestic NEV sales in China rose 40.7 percent in 2024, reaching 47.2 percent of total car sales, supported by government subsidies and a trade-in program similar to the U.S. “cash-for-clunkers” initiative.
More than 6.6 million vehicles sold in China in 2024 benefited from government subsidies, with NEVs receiving over 60 percent of the support, while the program is set to continue into 2025.
NEV sales in China are forecast to grow by 20 percent in 2025, accounting for 57 percent of total car sales, though this marks the slowest growth since 2021.
Despite rising sales volumes, the profitability of China’s auto industry has declined, with profit margins falling to 4.4 percent in the first 11 months of 2024, down from 5 percent in 2023 and 6.2 percent in 2020.
Baburajan Kizhakedath