China shipped 7.16 million passenger cars abroad in the first nine months of 2026, more than 70% more than in the same period a year earlier. At the same time, domestic sales fell by nearly 30%, making exports increasingly important for keeping production lines running, industry publication Gasgoo reports.
Vehicles with different powertrains are driving the increase in shipments. Internal combustion engine vehicles account for about a third of exports; the rest are electric and hybrid cars. Their popularity varies by region: plug-in hybrids have become an important part of the push into Europe, demand in Latin America is supported by both electrified and conventional models, while policies in Southeast Asian countries are accelerating the adoption of fully electric vehicles. Internal combustion engine vehicles continue to predominate in the Middle East and CIS countries.
Automakers are also taking different approaches to entering overseas markets. Chery is focusing on assembly from component kits and joint ventures. BYD is investing heavily in factories in Brazil, Europe and Southeast Asia. Geely is using acquisitions and equity partnerships to gain access to existing production and distribution networks, while Leapmotor is relying on Stellantis’ infrastructure. Foreign automakers, in turn, are turning their factories in China into export hubs, banking on local cost advantages.
Gasgoo analysts expect China’s passenger car exports to reach 10 million units in 2026 and 13 million by 2030. They believe further growth will be driven by new energy vehicles. To succeed overseas, manufacturers will need not only to compete on price but also to respond to demand in each region, develop local production and supply chains, and manage political risks.