A new energy vehicle for export is displayed at the Port of Lianyungang, Jiangsu Province, China on April 25, 2024.
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Chinese automakers outsold U.S. manufacturers for the first time last year, driven by growth from BYD and emerging markets, research firm Jato Dynamics said in a report on Thursday.
Chinese brands, led by Shenzhen-based BYD, sold 13.4 million new cars last year, while American brands sold about 11.9 million, according to the data. Japanese brands topped the list with 23.59 million sales.
Sales growth in China also outpaced that in the United States, increasing 23% year-on-year, far surpassing the 9% increase in the United States.
“The inaction of traditional automakers has led to consistently higher vehicle prices, inadvertently pushing consumers towards more affordable Chinese-made vehicles,” Jato senior analyst Felipe Munoz said in the report.
Chinese automakers, particularly flagship brand BYD, are expanding globally as a domestic price war for electric vehicles drives down prices and squeezes profit margins.
Chinese brands are particularly making inroads in emerging economies, where Jato said one in five new car sales last year were made due to rising global demand.
“More than 17.5 million new vehicles will be sold in emerging markets in 2023, more than the total sales in the United States and Europe for that entire year,” Munoz said.
According to the report, Chinese automakers gained significant market share in the Middle East, Eurasia and Africa, and also recorded growth in Latin America and Southeast Asia.
Meanwhile, some Chinese brands also increased their market share in developed countries such as Europe, Australia, New Zealand and Israel.
Munoz said the growth came despite other factors such as escalating trade tensions between China and Western countries, the European conflict, high interest rates and soaring car prices.
Sales increased in all regions except Africa, with Europe experiencing the fastest growth due to surging demand in Turkey, the report said.
However, the industry will face growing trade headwinds in 2024 as more countries enact measures to protect local industries from cheap Chinese exports.
This week, the EU announced it would raise tariffs on Chinese-made EVs to up to 38%, after the US quadrupled tariffs on Chinese-made EVs to 100%.
Turkey also reportedly announced on Saturday that it would impose an additional 40 percent tariff on cars from China, suggesting some emerging markets may follow suit.
