Chinese automotive companies surpassed their U.S. competitors in car sales for the first time last year, as reported by Jato Dynamics. Chinese brands, including the prominent BYD based in Shenzhen, sold a total of 13.4 million new vehicles, exceeding the roughly 11.9 million sold by American brands. Japanese brands led the pack with 23.59 million sales.
The sales growth in China also outpaced that of the U.S., with a notable 23% increase from the previous year, compared to the modest 9% growth in the U.S. market. Jato’s senior analyst, Felipe Munoz, attributed this shift to the legacy automakers’ neglect leading to consistently high car prices, subsequently driving consumers towards more affordable Chinese alternatives.
Chinese car manufacturers, like BYD, have emerged as global contenders, expanding their presence internationally amid an electric-vehicle price competition in the domestic market. While Chinese brands have made significant strides in emerging economies, accounting for one in every five new car sales last year, they have also made headway in developed markets such as Europe, Australia, New Zealand, and Israel.
Despite rising trade tensions between China and Western nations, along with challenges like conflicts in Europe, high interest rates and high vehicle prices, the automotive industry saw growth across regions in 2023, except for Africa.
Europe experienced notable growth, particularly fueled by high demand in Turkey. However, the industry faces potential obstacles in 2024, with various countries imposing measures to shield their local industries from inexpensive Chinese exports.
Recent developments indicate escalating trade obstacles, with the EU announcing increased tariffs of up to 38% on Chinese EVs, and the U.S. quadrupling tariffs on Chinese EVs to 100%. Turkey has also announced a 40% additional tariff on vehicles from China, signaling a potential trend among emerging markets to adopt protective measures.
