China Breathes Down Japan’s Automotive Neck
Surpasses Asian rival on vehicle exports in Q1 after passing Germany last year.

A big factor in the growth in exports has been many Chinese brands’ access to a full supply chain during a shortage of chips and other supplies.
IMAGE: Pexels/Pixabay
China is fast making inroads in the global automotive market, surpassing Japan in auto exports for the first time in the first quarter after passing Germany last year to now sit at the top, at least for now, according to S&P Global Mobility.
It remains to be seen if China will hold onto the lead for the year. S&P points out that China has multiple hurdles in the way: brand recognition, regulatory obstacles and political question marks.
Moody’s Analytics, quoted by CNBC, says China is still behind Japan on auto exports by an average of about 70,000 units per month but that it’s on pace to surpass it by the end of the year.
The Asian upstart has made big strides in advancing its auto manufacturing, technology and design, S&P says. Citing data from the General Administration of Customs in China, it says the country exported 3.32 million vehicles last year, up 57% year-over-year, more than a quarter of them battery-electric models. It ramped up exports even more in the first quarter to almost 1.5 million, a 76% year-over-year gain.
A big factor in the growth in exports has been many Chinese brands’ access to a full supply chain during a shortage of chips and other supplies that has hampered Western carmakers, S&P says.
The Biden administration has been working to change that by incentivizing companies to ramp up domestic electric-vehicle production and materials sourcing to gain independence from Chinese suppliers.
China’s domestic passenger vehicle sales, meanwhile, have slumped for two months in a row, down nearly 3% in both June and July. Exports balanced that, as its overall sales rose 1.7% in the first seven months of the year to 11.4 million.
Originally posted on Auto Dealer Today
More Showroom

Used Market Stabilizes
The Carfax Used Car Index noted a major drop in used-vehicle price increases in July after several months of hikes.
Read More →
California Hybrids Reach State Record
The Golden State still leads the country in electric-vehicle registrations, but much like the rest of the U.S. its hybrid market share is up while full electrics stabilize after a dramatic first-quarter dip.
Read More →
My Mercedes in the U.S.
The German brand debuted its studio dealership concept for the first time in the states in Los Angeles, tapping Americans’ penchant for creative distinctions.
Read More →
Used Sales Hit Summer Drag
The vacation season, combined with high prices, has dented deliveries and added to inventories, though supply is still slim enough to keep listings elevated.
Read More →
California Launches EV Rebate Program
Participating automakers are matching the state's $13.5 million investment in new electric-vehicle rebates scheduled to take effect later this summer.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
The Trade-In Paradox
Retailing older cars with confidence in today’s market is a matter of establishing and following a clear process that can turn greater profit for auto dealers as they aim to meet used-unit hunger.
Read More →
Focus on Vehicle Cabins
The market for interior materials will grow in coming years as automakers look to meet consumer demand while staying competitive with changeups to sourcing and included features.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
European EV Market Hits Record
Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.
Read More →