China Almost Doubles Auto Sector Exports with Range of Competitive Edge

Large-volume production, low prices, and improving quality helped China boost its exports of automobiles and auto parts by a whopping 45.31% last year, to US$40.896 billion, according to statistics compiled by the China Association of Automobile Manufacturers.

The exports went to 193 countries. Fifty-three of the markets each purchased more than US$100 million worth of autos and parts from China; their total purchases, at US$37.689 billion, made up 92% of the total. The top 10 markets were the United States, Japan, Russia, Korea, Germany, Iran, the Netherlands, Britain, Canada, and the United Arab Emirates, which together bought US$22,058 billion worth, or 54% of the overall amount.

China's automobile exports totaled 612,700 units in 2007, up 78.95% from the year before. Commercial vehicles accounted for over half of the total and sedans for 30%.

The country has rapidly developed its markets for autos and auto parts in the Middle East, Africa, Asia, and Europe over the past few years. Markets in Eastern Europe have seen particularly fast growth; sales to Russia, for example, skyrocketed 322.1% in value and 183% in volume in 2007. The increasing popularity of Chinese-made cars around the world is seen in the fact that countries importing more than US$300 million worth of the vehicles in 2007 included Russia, Iran, Kazakhstan, Vietnam, Algeria, Ukraine, and South Africa.

Auto parts, too, have established a solid position in China's export structure, with exports amounting to US$28.3 billion in 2007, making up 70% of the overall shipments in the line. Mainstream parts exports include tires, auto electronics, auto accessories, and engine parts.

A slowdown in domestic demand, coupled with a sharp increase in production capacity, has forced manufacturers to look at export markets more intently than ever. China has, as a result, become one of the world's largest suppliers of tires to the international market, with shipments rising 27.4% in 2007 to US$6.2 billion.

Engines with displacements of 250cc or less were the most popular export models, providing major growth momentum for exports of engines and engine parts. Shipments of these products were valued at US$2.1 billion last year. Exports of auto electronics brought in US$4.8 billion that year, and overseas sales of auto accessories amounted to US$3 billion.

China's Export Value of Auto Parts During 2005 to 2007 Unit: US$1 billion
Item	2005	2006	2007
Tires	3.4	4.5	6.2
Auto Electronics and Instrumental Panels	2.2	3.6	4.8
Wheel and Tire Parts	1.6	2.3	3.0
Car Frames and Related Parts	1.3	1.7	2.5
Engine and Engine Parts	9	1.4	2.1
Brakes and Brake Parts	1.1	1.4	1.9
Auto Lamps	3	4	7
Glass	2	3	5
Shock Absorbers and Suspension Parts	1	2	4
Clutches and Clutch Parts	2	2	3
Others	4.3	5.6	5.9
Total	15.6	21.6	28.3