China became the biggest car exporter in 2023 FIGURE 3 EV ICEChina automobile export volume 10,000 units, 2020-2023 2020 2023 First exporter491 371120 (24%) 2022 Second exporter311 24368 2021 Third exporter198 15543 93100 71.1 The global significance of China’s automotive sector China plays a pivotal role in the global automotive industry. It not only drives one-fifth of global car ownership, but it is also in a leading position in the development of electric vehicles (EVs), which contributes to the reduction of air pollution and the energy transition. This rapid growth, however, has also significantly increased the demand for natural resources, heightening dependencies on nature. Therefore, promoting a nature-positive transition in China’s automotive industry will help to build its long-term resilience. The largest automotive manufacturing hub Currently, the automotive industry in China is globally significant in terms of vehicle ownership, production, sales and export volumes.12 For example:1. With rising consumer spending and improved road infrastructure in China, the adoption of passenger and commercial vehicles has been steadily increasing. Vehicle ownership in China reached 336 million in 2023, representing nearly 20% of the global total. 2. China’s automobile production and sales have increased progressively and surpassed Japan’s for the first time, making China the world’s largest automotive exporter in 2023. The total number of overseas sales reached 4.91 million, of which 24% were EVs13 (up from 7% in 2020).14 3. China is a key production hub for car parts and components, such as interior and exterior trim, seats and wheels, for leading automotive manufacturers globally. By 2023, China had over 18,000 auto parts suppliers, far ahead of other countries.15 Source: CPCA; China Automotives Industry Association Vehicle ownership in China reached 336 million in 2023, representing nearly 20% of the global total. Nature Positive: Role of the Automotive Sector – China Deep-dive 12

Nature Positive Role of the Automotive Sector China Deep dive