According to the latest data released by the China Association of Automobile Manufacturers (CAAM), China’s automobile exports reached 3.083 million units in the first half of the year, marking a 10.4% year-on-year increase. Despite ongoing uncertainties such as trade barriers and geopolitical factors, the resilience of Chinese automobiles in the international market is clearly evident.

For many years, China’s automobile exports hovered around 1 million units annually. However, in 2021, China’s automobile exports began to experience explosive growth. From 2021 to 2024, China’s automobile export volumes reached 2.01 million, 3.11 million, 4.91 million, and 5.86 million, respectively.

This consistent growth is closely tied to the significant improvements in the quality of Chinese automobiles, brand development, and the increasing global competitiveness of their products. According to a 2024 passenger vehicle quality report from a well-known portal, the overall quality PPH (defects per 100 vehicles) of the industry’s new cars in 2024 averaged 153, a noticeable decrease from 181 in 2023.

Meanwhile, as the global automotive industry accelerates its shift toward electrification and intelligence under the carbon peak framework, the demand for electric vehicles in both domestic and international markets continues to grow. China’s leadership in electrification and smart technologies has helped Chinese automobiles attract an increasing number of consumers in the global market.

New Energy Vehicles: A Key Growth Driver for China’s Exports

New energy vehicles (NEVs) are a major contributor to the growth of China’s automobile exports. According to data from CAAM, in the first half of this year, traditional fuel vehicle exports totaled 2.023 million units, a 7.5% decrease compared to last year. In contrast, NEV exports reached 1.06 million units, with 1.011 million passenger cars exported, showing a 71.3% year-on-year growth. Industry experts believe the rapid growth in passenger car exports reflects a release of demand from individual consumers, shifting the market from large bulk commercial vehicle orders to diversified consumer demand. This structural shift demands stronger product quality, brand recognition, and after-sales support.

The continuous improvement in domestic industry chain efficiency and the advancement of intelligent technologies have given Chinese passenger vehicles greater cost-effectiveness and competitiveness in overseas markets. Additionally, increased investment in overseas market channels and brand development has laid a solid foundation for continued sales growth.

China’s NEVs Gain Global Competitiveness

According to international organizations’ statistics, China’s NEVs now account for 65% of global sales, with a 20% market share in the European Union. Despite the EU’s imposition of tariffs on Chinese-made electric vehicles, Chinese automakers have accelerated their localization strategies, which have helped secure sales of Chinese EVs in Europe. Notably, due to the tariff differences, Chinese plug-in hybrid electric vehicles (PHEVs) are still subject to a 10% base tariff in Europe, which has provided a breakthrough for Chinese automakers in the European market. Chinese PHEVs leverage the complete industry chain and significant cost advantages, filling the gap in Europe’s demand for electric vehicles during its industrial transition.

Accelerating Global Expansion and Strengthening International Markets

As Chinese brands accelerate their global presence, more and more Chinese automakers are not only focusing on exporting products but also actively pursuing comprehensive global expansion. For instance, in May this year, BYD established its European headquarters in Hungary to strengthen its market presence; Changan Automobile’s Thailand factory officially started production, with plans to introduce 12 new NEV models to Southeast Asia in the next three years.

Data also shows that in the first half of the year, exports of China’s PHEVs reached 390,000 units, a 210% year-on-year increase, making it the core engine driving the growth of NEV exports. Beyond the European market, Chinese electric vehicles are also experiencing strong growth in Southeast Asia and other markets.

Localization Production: A New Trend

CAAM’s Executive Vice Secretary-General Xu Haidong stated that even manufacturing powerhouses such as the UK, the US, Japan, and Germany ultimately chose localized production models, adopting a “made in a country, for a country” strategy. Chinese automakers need to focus on localization to achieve sustainable international development. Wu Songquan, Chief Expert at the China Automotive Technology and Research Center and Chief Engineer of the China Automotive Strategy and Policy Research Center, also stated at the 2025 China Automotive Forum that during the 14th Five-Year Plan period, China’s automobile exports will likely peak, and localized production in overseas markets will become a new trend.