China Surpasses South Korea? ... China's Annual Automobile Exports Exceed 2 Million Units

[Image source=Yonhap News]

[Asia Economy Reporter Park Byung-hee] According to a recent report by China's state-run Global Times, the annual number of automobiles exported by China surpassed 2 million units for the first time last year.

According to China's Ministry of Industry and Information Technology, the number of complete vehicle exports from China last year doubled from the previous year to 2,015,000 units, marking an all-time high. This represents an increase of more than 950,000 units, or 90.1%, from 1,060,000 units in 2020 within just one year.

As a result, there is speculation that China's automobile exports may have surpassed those of South Korea last year. According to data from the Ministry of Trade, Industry and Energy, although the annual export volume has not yet been confirmed, South Korea's automobile exports from January to November last year totaled 1,860,000 units, an 8.7% increase compared to the same period the previous year.

South Korea's automobile exports first exceeded 3 million units in 2011, peaking at 3.15 million units. However, since then, it has been on a downward trend, falling below 2 million units for the first time in 16 years to 1.89 million units in 2020, a 21.4% decrease from 2.4 million units the previous year.

As Korean automakers, including Hyundai Motor Company, pursue local production strategies to avoid tariffs and reduce production costs, South Korea's automobile export volume has been declining. South Korea was ranked third in the world in automobile export volume after Germany and Japan but was overtaken by Mexico in 2016, losing its position among the big three.

According to last year's industry trend report by the Korea Automotive Technology Institute, Chinese automakers are focusing on niche markets to overcome their weaker brand power.

Regionally, they are targeting areas with relatively low per capita income and close political ties with China, such as Russia, Eastern Europe, Latin America, Southeast Asia, and the Middle East. They are concentrating on vehicle types sensitive to price, such as trucks and vans.

The surge in China's complete vehicle exports last year was partly driven by the export of Tesla electric vehicles produced at the Shanghai factory. Of the 310,000 electric vehicles exported from China last year, Tesla accounted for 160,000 units.

However, the main drivers of export growth are local automakers such as Geely and Changan. Electric vehicle companies like Nio and Xiaopeng are also steadily entering European markets such as Norway. With the advent of the electric vehicle era, exports of Chinese complete vehicles are expected to continue increasing.