CHINA’S auto production climbed to a record in 2023, riding on surging exports of electric vehicles and shipments to Russia that filled the void created by the exit of Western manufacturers.

The nation’s carmakers churned out 30.16 million vehicles last year, and wholesale deliveries – which count shipments to dealers – rose to 30 million, according to China Association of Automobile Manufacturers (CAAM) data released on Thursday (Jan 11). Both surpassed previous records set in 2017. Exports surged 58 per cent to 4.91 million units.

“Price discounts have impacted the market and the recovery of auto consumption is ongoing,” with the industry facing relatively big pressure overall, said Chen Shihua, CAAM vice secretary general, in a briefing. “Toward the end of the year, the auto market performed better than expected and production and wholesale volumes broke records,” he said.

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 like Volkswagen and Toyota Motor 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 stabilises, the European Union has launched an anti-subsidy investigation into Chinese EVs, and some countries like the US are mulling raising import tariffs, said Xu Haidong, CAAM’s deputy chief engineer.

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