China-made NEV sales make up 60% global share in H1, total auto exports may surpass Japan by year-end

Sales of China-produced new-energy vehicles (NEVs) reached 3.65 million in the first half of 2023, up 48 percent year-on-year and accounting for more than 60 percent of the global NEV market.

Experts said that the strong momentum will persist for the rest of the year, and China may become the largest exporter of all types of vehicles and surpass Japan by the end of 2023, as China's auto manufacturing gets a boost from NEV making.

First-half global NEV sales grew by 45 percent year-on-year to 6.05 million, amid the expiration of government subsidies in various countries, said Cui Dongshu, secretary general of the China Passenger Car Association (CPCA), on Saturday.

"Thanks to an advanced industrial supply chain, China-produced NEVs made remarkable achievements in the first half of 2023, helping lift sales in both domestic and overseas markets," said Cui.

The structure of the global auto market remains stable, and the strong growth momentum of China's auto exports will be extended to the end of 2023, Cui said.

China overtook Japan as the world's top auto export in the first quarter of 2023.

Data from China's General Administration of Customs showed that China exported 1.07 million vehicles in the first quarter, while Japan exported 950,000 vehicles, according to the Japan Automobile Manufacturers Association.

"Based on the current situation in China's auto industry, the nation's annual auto exports may surpass Japan's by the year-end," Wu Shuocheng, a veteran automobile analyst, told the Global Times on Sunday, noting that China now leads the global green energy transformation.

However, Cui commented that building stable trade relations with as many countries as possible are necessary to consolidate the achievements of China's auto exports.

According to the Politico, France is pushing the EU to hit back at alleged "unfair exports" of electric vehicles by some countries.

Amid possible headwinds, Wu suggested that Chinese auto brands should invest more in overseas markets by investing in manufacturing and strategic centers overseas to defuse risks caused by trade protectionism and exchange rate volatility.