On Friday, Nikkei Asia reported that according to preliminary data from the China Association of Automobile Manufacturers (CAAM), China is presently poised to become the world’s largest car exporter this year for the first time in history.

According to the statistics, from January through November, China exported 4.4 million automobiles, which marked a 58% increase compared to the same period in 2022. That would mean China  overtook the previous export leader Japan, which is expected to have exported about 4.3 million units in 2023. The report noted that the last time Japan lost the top spot was in 2016, when Germany unseated it.

Nikkei wrote, “China aims to become an automotive powerhouse, and sees the global shift to EVs (electric vehicles) as a way to achieve that goal.”

The report pointed out that the increase in exports from China to Russia surged following the pullout of Western and Japanese automakers from Russia following the imposition of sanctions on Moscow over the war in Ukraine. According to statistics CAAM offered, from January to October, China exported 730,000 vehicles to Russia, which was seven times what it exported one year prior. Many of the exports consisted of gasoline powered vehicles from Chery Automobile and Great Wall Motor, including mid-sized and large sport utility vehicles.

Mexico was the second-largest market China exported to, with export volumes to the Central American country surging 71% to 330,000 vehicles. Nikkei wrote, “Chinese automakers are looking to build a customer base in the country to serve as a foothold for an eventual expansion into the US and Canadian markets.”

China also saw a 77% increase in its exports of Electric Vehicles (EVs) and other new energy vehicles, as it sent 1.43 million units overseas in the January to October period. CAAM’s data showed these accounted for 34% of all auto exports over the course of those months. The newspaper noted that most of the EVs China exported were delivered to Europe and Southeast Asia.