China is expected to increase its car exports next year to 5.58 million units, which would represent a 14% rise compared to the current year, according to analysts at Hua Chuang Securities.
By the end of 2024, a 29% increase in overseas shipments is anticipated following a 58% surge last year, when China surpassed Japan to become the world's largest car exporter, reports the South China Morning Post.
According to Canalys, in the first three quarters of this year, China's export shipments grew by 27%, totaling 3.1 million vehicles.
Import tariffs imposed by the European Union on Chinese electric vehicles are expected to reduce demand for fully electric cars, believes Canalys senior analyst Alvin Liu. However, he suggests that the EU remains an attractive market for Chinese automakers, who will produce and supply more hybrid vehicles to attract European customers.
"Europe continues to be a key market for Chinese automakers' globalization efforts," the expert asserts. "A prime example is SAIC Motor, which has introduced hybrid versions of its MG3 and MG ZS models, challenging the positions of Japanese brands in Europe."
According to data from Chinese customs, in November, electric vehicle exports from the country fell by 42% compared to the same month last year, amounting to $1.58 billion. This decline was the most significant since April 2022. Meanwhile, the total export volume was the lowest since July 2022, when it stood at $1.4 billion.
This was largely due to the EU tariffs, which resulted in a 36% drop in shipments, alongside a reduction in exports to emerging markets and a decrease in vehicle prices.