Stories
Chinese Car Makers Surge Overseas as Domestic Sales Falter
- •China's passenger car exports surged 64% in September compared to the same period previously, reaching around 919,000 vehicles driven by strong overseas demand for plug-in hybrids and EVs.
- •Domestic passenger car sales in China dropped 27% in September year-on-year to over 1.6 million units due to weaker consumer confidence and reduced government subsidies.
- •Chinese automakers are increasingly targeting international markets including Europe, Latin America, Southeast Asia, Africa, and Canada to drive growth and offset domestic weakness.
- •To bypass trade barriers and hefty tariffs in regions like the EU and the US, major players like BYD are expanding local manufacturing capacity in countries such as Thailand, Indonesia, Brazil, and Hungary.
Key Questions Answered
China's passenger car exports surged 64% in September 2026 compared to the same month in 2025, reaching approximately 919,000 passenger vehicles. This growth was driven by overseas demand for plug-in hybrids and pure electric vehicles.
Domestic passenger car sales in China declined due to weaker consumer confidence at home and scaled back government subsidies, alongside intense price wars and a slowing economy. As a result, domestic sales dropped 27% year-on-year in September 2026 to over 1.6 million units.
To avoid risks such as tariffs and protectionist pushback, Chinese EV giant BYD and other automakers are expanding their local manufacturing capacity in overseas markets. BYD has set up local production plants in regions including Thailand, Indonesia, Brazil, and Hungary.
