China produces a record 30 million cars and exports soar

China’s auto production and exports climbed to record highs in 2023 as its domestic market recovered and manufacturers filled the void left by Western companies that pulled out of Russia.

Carmakers churned out 30.16 million vehicles last year, and wholesale deliveries — which include shipments to dealers — rose to 30 million, according to China Association of Automobile Manufacturers data released Thursday. Both surpassed previous records set in 2017. Exports surged 58% to 4.91 million units.

“Price discounts have impacted the market and the recovery of auto consumption is ongoing,” Chen Shihua, CAAM’s vice secretary general, said in a briefing. “Toward the end of the year, the auto market performed better than expected and production and wholesale volumes broke records.”

Russia was the top destination for Chinese auto exports in 2023, receiving more than 841,000 vehicles in the first 11 months of the year, more than twice the number sent to runner-up Mexico. Chinese carmakers have taken advantage of the withdrawal of companies including Volkswagen AG and Toyota Motor Corp. following Russia’s invasion of Ukraine in early 2022.

However, China’s export drive may face headwinds this year. The boost from Russia isn’t expected to recur as the local market stabilizes, the European Union has launched an anti-subsidy investigation into Chinese EVs, and some countries such as the US are mulling raising import tariffs, said Xu Haidong, CAAM’s deputy chief engineer.

SAIC Motor Corp. remained China’s biggest auto exporter, while Chery Automobile Co. claimed the No. 2 spot, boosted by its shipments to Russia. Zhejiang Geely Holding Group Co. and Chongqing Changan Automobile Co. followed in third and fourth places, according to CAAM.