China’s auto industry steps up

Ones to Watch

The Chinese auto industry has accelerated its global expansion this year. According to the China Association of Automobile Manufacturers, exports grew over 81% year-on-year to 1.76 million vehicles in the first five months of 2023. The auto industry achieved a major milestone earlier this year when it overtook Japan as the world's largest vehicle exporter, thanks in large part to strong growth in foreign demand for its New Energy Vehicles (NEVs), a segment that is primarily electric and plug-in hybrid vehicles.

According to the association, NEV exports increased by 163% to 457,000 vehicles in the five-month period, with significant growth coming from Europe. According to the European Automobile Manufacturers Association, China was the largest exporter of vehicles to the European Union last year, ahead of Turkey and the United Kingdom, and it grew strongly this year as well.