China first in the world
Beijing secured the top spot among the world’s largest auto exporters in the first three months of this year. A reality reinforced by the increase in Chinese exports with a growing demand for electric vehicles, among other factors. Exports of renewable energy vehicles increased in the first quarter of this year, including electric cars, by more than 90% compared to the previous year. 40% of new energy vehicles exported by China in the first quarter of 2023 reached 83,000 units, accounting for 40% of all its exports.
Tesla and BYD
SAIC, the Chinese arm of Tesla, owner of the MG brand, and BYD, backed by veteran US investor Warren Buffett, are among the biggest Chinese exporters of NEVs. The aforementioned Tesla factory can produce 1.25 million cars per year at present, and the company plans to increase its production capacity. China has also seen an increase in its exports to Russia since the outbreak of war in Ukraine as Western countries imposed trade sanctions on Moscow. Over the past year, Chinese automakers have seen a general increase in their market share in Russia after their main competitors left following the Ukraine crisis.
In an interview with Sabah, “Sky News Arabia”, explains Roger Obaid, a specialist in the field of cars. The reasons that have helped China dominate the global car export market are as follows:
The situation in Russia because Japanese manufacturers and some European manufacturers have withdrawn from this Russian market, while China has taken advantage of this stake and has spread a lot in Russia. In the first quarter of this year, sales from China tripled only in Russia, amounting to around 140,000 cars. Chinese electric cars have a low cost, because today most of the batteries are made in China, the cost is lower, and the labor cost is also lower. By comparing Chinese cars with Japanese or German cars, we find that Chinese cars are priced about half as much as others and have the same specifications. These are all factors that place China, so far, at the forefront of the automotive market. Raw and primary materials for making electric cars are easy to manufacture in China.
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