Automotive products, according to the World Trade Organisation (WTO) include motor vehicles, parts, accessories for motor vehicles, and internal combustion engines for propelling vehicles. This grouping excludes motorcycles and trailers.
Data from the WTO revealed that the European Union was the highest exporter of automotive products to markets in other parts of the world in 2022.
European Union controls 46.1 percent of the vehicle export market, valued at $699 billion.
This was followed by the United States, which controlled about 9.1 percent of the market share and is valued at $138 billion in the export of automotive products.
Japan was ranked as the third-largest automotive exporter in 2022 with an 8.9 percent market share valued at $135 billion while Mexico emerged as the fourth biggest exporter of auto products with an 8.5 percent market share and export trade valued at $129 billion.
China, which controlled about 8 percent market share valued at $121 billion within the period under review, was ranked as the fifth largest exporter of auto products while South Korea emerged as the sixth largest auto exporter with a 5.1 percent market share valued at $77 billion.
Canada was ranked as the seventh-highest exporter of automotive vehicles in 2022 with a market share of 3.3 percent and exports valued at $50 billion while the United Kingdom which controls 2.7 percent of the market and exported products valued at $41 billion, was ranked as the eighth highest vehicle export country in the world.
Thailand, which controls about 2 percent of the world’s automotive export market, moved vehicles valued at $30 billion within the period under review while Turkey which controls about 1.7 percent of the world’s automotive export market, moved products valued at $25 billion in 2022.
WTO further listed countries including China, Mexico, and South Korea as automotive exporters that have grown their share of the global value of the total automotive export market most since 2000.
China became the world’s largest car market back in 2009 and accelerated the growth of its domestic automakers. It is also home to some of the world’s biggest automotive suppliers, including Weichai known for making diesel engines, Hasco Automotive known for its drivetrain and air conditioning systems, and CATL masters in the production of EV batteries.
Also, Mexico grew its auto industry by attracting global brands to construct their factories in Mexico country. The country’s competitive edge includes cheaper labour and a land border with the United States.
Similarly, South Korea, whose growth is largely attributed to the success of the Hyundai Motor Company, a company that recently became the third largest automaker on a global basis, trailing only Toyota and Volkswagen.
The automotive exporters that declined the most since 2000 are Canada, Japan, and the United States.
Canada’s automotive industry is largely concentrated in the province of Ontario, which neighbours Michigan, the top state for US car production.
Canada’s auto industry has experienced a steady decline in recent years, but there is a likelihood that new Electric Vehicle-related investments could turn things around in the near future.
In March 2022, Stellantis and LG Energy Solutions announced the construction of a $3.5 billion EV battery plant in Windsor, Ontario.
Meanwhile, the European Automobile Manufacturers’ Association said that over 85 million motor vehicles were built around the world in 2022.