China sold more cars abroad than any other country in the first three months of the year, one of the reasons being the explosive growth of deliveries to customers in Russia, according to Bloomberg, citing Agerpres.

The price of the P5 model is a third lower than the Tesla Model 3Photo: Hector RETAMAL / AFP / Profimedia

China shipped 1.07 million cars overseas from January to March 2023, overtaking Japan, long the undisputed leader in global auto exports, for the first time, consulting firm AlixPartners said on Monday.

In the first three months of this year, China exported 112,000 cars to Russia, which can be compared with deliveries for the entire period last year. This is after Western car manufacturers stopped deliveries to Russia due to the invasion of Ukraine.

In contrast, the success of Chinese car brands in Europe and the US remains limited, with Chinese manufacturers selling just 900,000 cars in those markets last year.

However, consulting firm AlixPartners expects Chinese car shipments to these markets to grow 67 percent by 2026, as a number of companies such as BYD Co. and Xpeng Inc., are ramping up efforts to expand overseas.

China is producing more and more electric cars

“We believe now is the time for Chinese brands to begin their disruptive influence on Western markets,” AlixPartners director Stephen Dyer, a former Ford Motor Co executive, told a conference in Shanghai.

The consulting firm predicts that global passenger car sales will grow by 5% this year, largely due to a surge in demand for electric vehicles. Regionally, AlixPartners expects 10% growth in the US, 6% growth in Europe and 3% growth in China.

Also, in China, the world’s largest car market, it is possible that Chinese automakers will overtake their foreign rivals this year for the first time in four decades, AlixPartners estimated, adding that local brands are better at offering the latest technology demanded by young people. consumers

Foreign automakers are having trouble maintaining their positions in the Chinese market, raising doubts about their long-term future in the Asian country.

Doing business in China has become increasingly difficult for manufacturers such as Volkswagen AG and General Motors Co. as Chinese rivals launch numerous electric models.