Chinese electric vehicle manufacturers have been making significant strides in the global car market, as reflected in the country’s soaring car export figures post-pandemic. From 2020 to 2021, car exports from China increased from around 1 million to 2 million, and the numbers continued to climb dramatically, reaching almost 5 million in 2023. This phenomenal growth indicates a quintupling of Chinese car exports in just three years, surpassing Germany in 2022 to become the second-largest car exporter and overtaking Japan in 2023.
While Chinese electric vehicles have gained media attention in Europe and North America, the majority of Chinese car exports consist of conventional vehicles shipped to Asia, the Middle East, and Africa. The share of electric vehicles in China’s car exports has increased from 15% to 25% in the past two years, with EV sales to Europe experiencing significant growth. Despite slowing EV sales in China, carmakers are ramping up efforts to export their vehicles overseas, with BYD surpassing Tesla in vehicle shipments in Q4 of 2023.
However, Chinese cars have received a mixed reception in Western markets, with concerns over security and quality overshadowing the price advantages in the electric vehicle segment. Negative perceptions of Chinese cars remain high in surveys conducted in various European countries, and the U.S. government recently launched a probe into data security concerns surrounding Chinese connected cars. The European Commission has also opened an investigation into allegations of China providing unfair aid to its carmakers, potentially violating international trade laws.
Foreign Policy and The Economist have both highlighted concerns about the impact of Chinese carmakers entering Western EV markets, citing national security issues and price competition. While some view the influx of Chinese cars as threatening, others argue that it could help drive down prices for European EV producers and accelerate the transition to more affordable electric vehicles in the face of climate change challenges. Despite the challenges and controversies surrounding Chinese car exports, the rapid growth of the country’s car industry on the global stage is undeniable.
