China’s auto industry saw significant growth in the first quarter of 2024, with auto sales rising by 10.6% to 6.72 million vehicles, according to the China Association of Automobile Manufacturers. The country’s auto output also increased by 6.4% to 6.6 million units during the same period. Production of new-energy vehicles (NEVs) led the way, with a 28% increase in production to 2.1 million units, and a nearly 32% increase in sales to 2.09 million units. Additionally, China experienced a one-third rise in overseas auto shipments to 1.32 million units, solidifying its position as the world’s largest auto exporter.
Despite criticism from the U.S. and Europe regarding China’s industrial policies and alleged overcapacity in the EV industry, China defended its position in a commentary by Xinhua News Agency. The country’s economy, the world’s second largest, has faced challenges in regaining pre-pandemic growth levels. The number of billionaires in China fell to 406 on the 2024 Forbes Billionaires List, down from 495 the previous year. Concerns have been raised about government support for supply chains over consumer spending, leading to worries about export subsidies in the auto and green energy industries.
China’s influence in the auto industry was highlighted in the 2024 Forbes Billionaires List, which featured five Chinese billionaires whose fortunes came from the auto industry. This included entrepreneurs like Robin Li, Li Shufu, and Wei Jianjun. BYD had two founders, Wang Chuanfu and Lu Xiangyang, among the top five richest billionaires in the auto industry. The upcoming Auto China event in Beijing, starting on April 25, will be a key focus for global auto industry executives, showcasing China’s latest developments and innovations in the sector.
The tensions between China and Western countries over policies supporting the auto industry continue to escalate, with the U.S. Treasury Secretary Janet Yellen raising concerns about artificially cheap Chinese goods during her recent visit to the country. The allegation of ‘overcapacity’ in China’s EV industry was deemed groundless by Xinhua, as China remains committed to expanding its EV production and sales. The growth in China’s auto sector reflects the country’s determination to maintain its position as a key player in the global automotive market, despite facing challenges from other countries.
With the emerging trends in the auto industry, particularly in the EV sector, China’s dominance and continued expansion in production and sales indicate a shift in the global landscape. The annual Auto China event provides a platform for Chinese companies to showcase their latest innovations and technologies to a global audience. As China’s auto industry continues to grow and evolve, its impact on the global market is becoming increasingly significant, with implications for both domestic and international players in the sector.
