China’s automobile exports recorded a sharp increase in 2025, rising 21 percent year on year as overseas shipments offset weakening domestic demand, according to data released Wednesday by industry groups. The growth was largely driven by expanding exports of electric vehicles and plug-in hybrids, as manufacturers responded to structural pressure from an overcrowded local market. Total vehicle exports surpassed seven million units, while exports of new energy vehicles doubled to 2.6 million units, underscoring the sector’s increasing reliance on global demand.

The export surge reflects a strategic shift by Chinese automakers seeking higher margins abroad amid an intensifying price war at home. Analysts described overseas markets as offering comparatively stronger profitability and faster growth, creating a sustained incentive to expand internationally. Recent progress in resolving trade frictions between China and the European Union is expected to support further growth, though exporters continue to face regulatory hurdles in wealthier markets such as the United States and Canada. Despite these constraints, leading manufacturers such as BYD are positioning global expansion as a long-term imperative, even as domestic sales growth moderates and government subsidies are gradually reduced. Industry forecasts indicate export momentum will continue through 2026, reinforcing China’s role as a dominant force in the global electric vehicle market.