China overtakes Japan to become world's largest car exporter by 2023

date_range 05-Feb-2024
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TOKYO (Reuters) - China will become the world's largest car exporter by 2023 for the first time, surpassing Japan with strong electric car sales overseas, industry data show. Japan's auto exports to reach 4.42 million units in 2023, up 16 percent from a year earlier, data from the Japan Chamber of Commerce released on Wednesday shown an increase of 58 percent to 4.91 million units.

Japan has overtaken Germany for the first time since the top spot in 2016. Demand for all-electric vehicles to reduce carbon emissions is growing around the world by Chinese automakers such as BYD Co. boosted its exports with strong support from the Chinese government.

China's gasoline car exports to Russia also rose sharply after Japanese, US and European automakers withdrew from the war in Ukraine.

Japan's auto exports rose for the first time in the last two years, but were lower than the previous prevalence of 4.82 million in 2019, according to data released on Wednesday.

Japanese automakers such as Toyota Motor Corp. have been reviewing their production strategies in recent years, aiming to be less reliant on gasoline-powered vehicles and increase sales of gasoline-electric vehicles, which in many cases Can be used for longer distances than pure electric vehicles.

Maintaining its top position could present a challenge for China as global electric vehicle sales show signs of recent decline due to high prices and shortage of charging stations, experts said.