Fueled by its dominance in electric automobiles, China has overtaken Japan as the world’s largest vehicle exporter. China shipped more cars last year than Japan did, at 4.91 million, according to official figures.
Japanese automakers, like Toyota and Nissan, have been tense about electric vehicles (EVs) compared to their Chinese counterparts. Unlike Chinese companies, Japanese automakers produce significant volumes of vehicles in other countries. Japan’s vehicle production in 2022, excluding motorcycles, totaled 7.84 million units domestically but almost 17 million units overseas.
Japanese manufacturers have traditionally focused on hybrid models combining battery power and internal combustion engines, like the Toyota Prius. However, they are now aiming to increase their EV production, with Toyota targeting 1.5 million EVs annually by 2026 and 3.5 million by 2030.On the other hand, Chinese electric vehicle companies have surpassed long-standing competitors such as General Motors and Volkswagen, thanks to strong government support. In the fourth quarter of 2023, BYD, a Chinese electric car business, even overtook Tesla in terms of all-electric vehicle sales. However, Chinese success in the EV market has raised concerns in Western markets about unfair competition, leading to regulatory scrutiny and investigations. BYD is addressing concerns by planning to build more factories abroad, including a $600 million plant in Brazil and another in Hungary.
India’s position:
Tata Motors, India’s leading electric vehicle (EV) manufacturer, is making strides in the global EV market by conducting trials of its electric cars in potential markets. Managing Director Shailesh Chandra revealed that these tests, though in early stages, aim to assess market viability and tailor a successful strategy. Capitalising on the global surge in EV sales due to stringent emission regulations, Tata plans to establish exclusive EV dealerships in specific Indian cities.
Tata’s commitment to growing its EV industry is strengthened by the recent introduction of the Nexon electric SUV, which boasts an amazing 465 kilometres of range on a single charge. Tata Motors, which controls more than 80% of the expanding EV market in India, supports the government’s aggressive target of 30% sales of electric vehicles by 2030 and helps India gain prominence in the EV world.
