China Automotive Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

China Automotive Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

The China Automotive Logistics Market size is estimated at USD 52.58 billion in 2024, and is expected to reach USD 70.22 billion by 2029, growing at a CAGR of 5.96% during the forecast period (2024-2029).

The COVID-19 pandemic brought significant changes in the automotive industry in China. Preliminary data from the China Passenger Car Association (CPCA) finds that passenger car sales dipped 80% during the pandemic. This negatively impacted the automotive logistics market. However, the Chinese government has taken steps to bounce back automobile consumption. These steps include providing fiscal and taxation support, speeding up the elimination of obsolete diesel trucks, and optimizing second-hand vehicle trading channels. Such initiatives will keep the market afloat.

China continues to be the world’s largest vehicle market by both annual sales and manufacturing output, with domestic production expected to reach 35 million vehicles by 2025. In addition, Chinese automobile sales overseas have witnessed significant growth over the years, supported by surging global interest in electric vehicles, further creating the opportunity for China to emerge as the leading global supplier, surpassing Japan. Also, Chinese automobiles carry a competitive advantage in overseas markets. For instance, in the United Kingdom, the Volkswagen ID.3 has a starting price of more than USD 47,600, whereas the China brand MG 4 is SAIC's latest compact electric car, with a starting price of less than USD 34,700, which further results in sales growth across other regions. This growing automotive sector, increasing vehicle sales, and exports are expected to drive the country's automotive logistics market.

China Automotive Logistics Market Trends

Chinese Investment in NEVs (New Energy Vehicles) Driving the Market Growth

In Q1 2023, China surpassed Japan to become the world’s largest exporter of automobiles. In addition, the outbreak of war in Russia further fueled the exports of automobiles from China. Official Chinese statistics reveal that China’s exports of automobiles and automobile parts to Russia more than doubled in the first four months of 2023, compared to the previous year, amounting to USD 6.1 billion. In addition, according to China's Association of Automobile Manufacturers (CAAM) data, Russia was the largest destination for China’s automotive exports in the last quarter. A significant portion of automobile exports in China consists of new energy vehicles, primarily electric vehicles (EVs). In Q1 2023, China emerged as the world’s largest exporter of electric cars. As per the International Energy Agency (IEA), approximately 35% of globally exported electric vehicles in 2022 originated from China, when compared to 25% in 2021.

In addition, as per CAAM data, in Q1 2023, China exported more than 335,000 new energy passenger vehicles (including plug-in hybrid electric vehicles), more than double the figure for the same period in 2022. In addition, the volume of new energy passenger vehicles accounted for around 30% of its total passenger vehicle exports from Q1 2023. Despite limited visibility across developed nations, China emerged as a potential electric vehicle manufacturer, which was supported by policies and the active participation of Chinese companies in recent years. Moreover, in April 2023, a Chinese NEV startup shipped a cargo of 3,600 new energy vehicles to Southeast Asia from Nansha Port in Guangzhou, Guangdong province. Thus, the growing new energy vehicles market and exports further create demand for automotive logistics services in the country.

Increasing Vehicle Exports from China Fuelling the Demand in the Market

China has emerged as the world’s factory in the process of participating in globalization activities. In 2023, China’s automotive exports witnessed consistent growth. In addition, as per the China Association of Automobile Manufacturers (CAAM) data, in 2022, China exported more than 3.1 million vehicles, and in Q1 2023, the country’s exported reached 1.07 million vehicles, up by more than 58%, when compared to the same period in 2022. Chinese automotive manufacturers are gaining traction across international markets by enhancing their technology, design, and manufacturing processes. However, political risks and regulatory challenges remain a concern for Chinese manufacturers as they navigate different markets worldwide.

Meanwhile, in 2022, SAIC Motor ranked first among the vehicle exporters in the country by exporting more than 850,000 vehicles, followed by Chery, Tesla, Changan, etc. Mexico is the top export destination for China’s automotive market. General Motors vehicles are one the major exporters of vehicles to Mexico from China. The growing General Motors vehicles supply to Mexico and Tesla shipping, as well as more models from its Shanghai plant to Canada, has resulted in increased market share of China’s automotive suppliers in North America. This consistent growth in automotive exports from China results in the increasing demand for automotive logistics services, driving the market growth.

China Automotive Logistics Industry Overview

The Chinese automotive logistics market is highly fragmented and competitive, with the presence of several local automotive logistics companies in the country apart from international firms. International players like DHL and Nippon Express compete with local players like SAIC Anji Logistics and Yusen Logistics.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support