Chinese Car Exports Soar 77.5% As Home Market Suffers 11th Monthly Decline

China’s car exports are booming even as Chinese buyers pull back, exposing a growing divide between the country’s overseas success and weakening domestic demand.

Passenger vehicle exports jumped 77.5 per cent year-on-year to 894,000 units in August, according to the China Passenger Car Association (CPCA), although growth slowed from 88.2 per cent in July. In contrast, domestic passenger vehicle sales fell 23.7 per cent to 1.55 million, marking an 11th consecutive monthly decline and worsening from July’s 21.1 per cent drop.

The weakness is particularly striking because electric vehicles and plug-in hybrids now account for 64.7 per cent of domestic passenger vehicle sales. Yet sales of these new energy vehicles (NEVs) fell 10.1 per cent in August, compared with a 3.9 per cent decline in July.

One major reason is China’s increasingly crowded and fiercely competitive auto market. Automakers are competing aggressively on prices, putting pressure on manufacturers, suppliers and dealers. The slowdown also reflects softer consumer demand after years of rapid EV adoption.

Exports, meanwhile, are providing a crucial growth outlet. NEV exports surged 154.7 per cent in August, accelerating from 147.8 per cent in July. BYD and Geely recorded fresh export highs, while Chinese brands continue expanding across Europe and emerging markets with relatively affordable, technology-rich vehicles.

BYD’s overseas sales reached a record 189,466 vehicles in August, up 134.5 per cent year-on-year and accounting for about 43 per cent of its global NEV sales. Its domestic sales still fell 14.3 per cent year-on-year.

Chery provides another illustration of the shift. It exported about 187,154 vehicles in August, meaning more than 70 per cent of its total sales came from overseas markets. Its domestic sales remained far weaker than exports.

Chinese automakers are increasingly treating international expansion as essential. Xiaomi has signed agreements with German dealers ahead of its planned European launch next year, while Seres is seeking to catch up with rivals that established overseas networks earlier.

But the export surge also creates risks. Chinese regulators have warned automakers against steep or frequent overseas price cuts, fearing that the domestic price war could spread to foreign markets. Major manufacturers including BYD, Chery and Geely have pledged to comply.

CPCA Secretary-General Cui Dongshu expects China to export 12 million vehicles this year, with annual exports potentially reaching 18 million to 20 million by 2030.