China's Auto Exports Face Cooling Trend Amid Global Challenges

China, the world's largest auto exporter, is likely to see a slowdown in auto exports in 2024, with predicted zero growth for electric vehicles. EU tariffs and decreased shipments to Russia contribute to this trend. Despite domestic sales growth, profitability faces challenges amid an intense price war.

China remains the top global auto exporter, edging out Japan for a second consecutive year in 2024 with 4.8 million units sold, according to the China Passenger Car Association (CPCA). However, growth is forecasted to cool to 10%, influenced by European Union tariffs and reduced shipments to markets like Russia.

Despite robust local market performance with record sales in electric vehicles and plug-in hybrids, international pressures and a tough price war have affected exporter profitability. Domestically, China's sales growth was driven by significant government subsidies and programs akin to the U.S.'s past 'cash-for-clunkers' stimulus.

In an evolving global auto industry landscape, Chinese carmakers, including BYD and Tesla, gained market share, while foreign automakers such as General Motors and Toyota faced stiffer competition. The sustainability of this growth remains uncertain as profitability margins shrink and pressures persist.

(With inputs from agencies.)