America is one of the largest producers of cars, trucks, and SUVs in the world. The automotive industry has played a pivotal role in the American economy for decades. It provides thousands of jobs for Americans. Plenty of international automotive brands own plants in the United States to serve the American market. There’s only one country on the planet that builds more vehicles than the USA.

This country builds more vehicles than America

The International Monetary Fund calls China the second richest country in the world behind the U.S. America’s economy has significantly benefited from globalism and technological innovations. China, one of the most populous countries in the world, is richer than several countries, including Japan, Germany, and the United Kingdom. It also produces more vehicles than any other country, including America.

Millions of products are exported from China to different countries due to labor and supply costs. Many American companies outsource jobs and build factories in China instead of the United States because of the country’s capacity for high output (among other fiscal reasons).

China builds more vehicles than America, partly because a percentage of the vehicles it builds are from American brands. Tesla already owns one factory in Shanghai, China, with plans to open another. According to Reuters, China was the top market for the world’s current most popular vehicle, the Tesla Model Y, in 2023. It cranks out more than twice as many vehicles as America, and there’s a clear demand to match the country’s supply.

From Tesla’s perspective as a company, China’s capacity to produce a high volume of vehicles is extremely beneficial. The Shanghai factory also establishes a foothold for the company in its most popular marketplace. China will likely continue to build more vehicles than the United States. Tesla will continue to be one of the country’s most popular brands.

Tesla, China, and world domination

Tesla is already dominating the American electric vehicle space. The brand is the most popular electric vehicle brand in the United States by leaps and bounds. Rivals are gaining ground from a quality perspective, but Tesla Inc. still accounts for the majority of the EV market share in America.

The United States isn’t enough for the electric vehicle and clean energy company. Tesla has global ambitions that don’t end with vehicles. China plays a huge role in the brand’s plan to become the top automaker in the world. Thus far, it’s positioned for world domination.

Should the United States build more vehicles?

More vehicle assembly and production in America could be great for the economy. Automakers like Tesla are already increasing production at American factories to meet the demand for vehicles like the Model Y. Ultimately, automakers would have to make huge investments in U.S. factories to compete with China on the vehicle production front.

It seems that companies like Tesla are making the most strategic and financially lucrative moves to sell vehicles globally. So, China will remain a hub of vehicle production for many automakers around the world to sell vehicles in Asia.