Chinese-made cars are gaining popularity globally, with China becoming the world’s top automobile exporter in the first quarter of 2021, surpassing Japan and giving Korean rivals a run for their money. According to data from the Korea Automobile Manufacturers Association (KAMA), China exported 994,000 vehicles in Q1, comprising 826,000 passenger cars and 168,000 commercial vehicles. In comparison, Japan exported 954,000 vehicles during the same period.
The Korea Times reports that China has started exporting more expensive vehicles in recent years, making them more appealing in wealthier countries across Europe, the United Kingdom, and Australia. The average export price per Chinese car reached $16,400 in 2022, a significant 27% increase from $12,900 in 2018. It is possible that the average price will exceed $20,000 this year.
China’s domestic market is already saturated, and to solve the supply and demand issue, it has no choice but to expand into the export market. Lee Hang-koo from the Korea Automotive Technology Institute said that China will continue to grow its domestic market, but ultimately it has to expand into the export market.
It’s not just Chinese carmakers that are contributing to the greater export numbers. Foreign-owned firms like Tesla, Volvo, and Mercedes-Benz also build cars in China for global markets. In fact, Tesla exported 270,000 vehicles from China last year, making it the third-largest car exporter in the country.
Lee Hang-koo believes that the proliferation of new cars from China will challenge Hyundai. Hyundai focused on emerging markets and experienced growth, but recently the Chinese market fell through. The U.S. market is doing well; however, they are already slightly falling behind in the European market. China continues to push both electric and internal combustion engine vehicles out into the export market, leaving Korean companies at a disadvantage. Hyundai has the Genesis brand, which is a luxury car brand, but in the end, the company needs to compete with both internal combustion engine vehicles and EVs in the mid-to-low price range.
## China Becomes World’s Top Automobile Exporter
China has established itself as the world’s top automobile exporter, with Chinese-made cars gaining popularity globally. In the first quarter of 2021, China exported 994,000 vehicles, surpassing Japan and giving Korean rivals a run for their money. The proliferation of new cars from China will challenge Hyundai, which has focused on emerging markets and experienced growth. However, the Chinese market fell through recently, and Hyundai is already slightly falling behind in the European market.
## China’s Growing Export Market
China’s domestic market is already saturated, and to solve the supply and demand issue, it has no choice but to expand into the export market. Lee Hang-koo from the Korea Automotive Technology Institute said that China will continue to grow its domestic market, but ultimately it has to expand into the export market. China has started exporting more expensive vehicles in recent years, making them more appealing in wealthier countries across Europe, the United Kingdom, and Australia. The average export price per Chinese car reached $16,400 in 2022, a significant 27% increase from $12,900 in 2018. It is possible that the average price will exceed $20,000 this year.
## Foreign-Owned Firms in China
It’s not just Chinese carmakers that are contributing to the greater export numbers. Foreign-owned firms like Tesla, Volvo, and Mercedes-Benz also build cars in China for global markets. In fact, Tesla exported 270,000 vehicles from China last year, making it the third-largest car exporter in the country.
## The Challenge for Hyundai
Lee Hang-koo believes that the proliferation of new cars from China will challenge Hyundai. Hyundai focused on emerging markets and experienced growth, but recently the Chinese market fell through. The U.S. market is doing well; however, they are already slightly falling behind in the European market. China continues to push both electric and internal combustion engine vehicles out into the export market, leaving Korean companies at a disadvantage. Hyundai has the Genesis brand, which is a luxury car brand, but in the end, the company needs to compete with both internal combustion engine vehicles and EVs in the mid-to-low price range.
