Chinese electric vehicle exports reach new Record Levels

Chinese automakers are accelerating their expansion into foreign markets as exports become necessary to offset a sharp decline in the domestic market, Les Echos reports. At the current pace, China could export 10 million vehicles in 2026 for the first time, up from about 7 million last year, with the Chinese Passenger Car Association suggesting that in an optimistic scenario exports could even exceed 12 million.

Since spring, monthly shipments have been about one million units, reaching 930,000 in May, which is almost 69% more than last year, after an increase of 74% in April. This jump contrasts with the deteriorating situation in the domestic market, where car sales have been falling for eight months in a row, in particular by 22% in May and by almost 20% since the beginning of the year. Demand in China has suffered due to the reduction of tax incentives for electric vehicles, the crisis in the real estate market and declining consumer confidence, and the market itself is also maturing after rapid electrification.

Overseas, Chinese brands see a window of opportunity, as high oil prices make electric vehicles more attractive, and overseas markets offer better margins than the highly competitive Chinese market, which has about 150 brands. Automakers are expanding distribution, investing in marketing, and looking for partners for local production. XPeng aims for half of its sales to come from overseas markets over time, while Geely aims for 1.5 million international shipments and a 5% share in key markets.