China auto sales: China has likely dethroned Japan as the world's leading auto exporter in 2023, marking a significant milestone for the Chinese auto industry, according to the China Passenger Car Association (CPCA). Domestic automakers such as BYD and Chery played a pivotal role in this achievement as they expanded their presence in overseas markets.

China, already the world's largest auto market, also emerged as the top auto exporter in 2023, with a record 62 per cent surge in car exports to 3.83 million vehicles, as announced by the CPCA during a press conference. This news comes amidst a global shift in the automotive landscape, with Chinese electric vehicle (EV) manufacturers, including BYD, gaining prominence.

The CPCA estimated that China's total auto exports for the entire year reached 5.26 million units, valued at approximately $102 billion, surpassing Japan's forecasted exports of about 4.3 million units. The robust numbers underscore China's growing influence in the global auto exports market.

The rise of China as an auto export powerhouse has triggered concerns in some governments, leading to investigations and discussions about potential tariffs. In September, the European Commission initiated a probe into Chinese-made electric vehicles, and the Biden administration in the United States is reportedly considering tariffs on certain Chinese goods, including EVs.

Domestically, China's auto market continued its growth streak, with vehicle sales increasing by 5.3 per cent to 21.93 million in 2023, marking the third consecutive year of growth. The market witnessed a fierce price war as automakers aimed to attract consumers amid economic uncertainties.

Sales of pure battery-powered vehicles in China experienced a notable 20.8 per cent surge last year, following a 74.2 per cent jump in 2022. Plug-in hybrid sales also saw substantial growth, rising by 82.5 per cent in 2023. UBS auto analyst Paul Gong predicts that domestic brands in China's total sales will rise to 63 per cent in 2024 from 56 per cent in the previous year.

While BYD, backed by Warren Buffett's Berkshire Hathaway, expanded aggressively in Southeast Asia and Europe, Tesla contributed significantly to China's export boom by exporting 344,078 China-made electric vehicles.

The intense competition in the Chinese auto market is expected to escalate, with popular smartphone maker Xiaomi entering the electric vehicle space. Xiaomi unveiled its first electric vehicle last month and expressed aspirations to become one of the world's top five automakers.

(With Reuters inputs.)