Key facts
- China's passenger car exports in May surged 73% year-on-year to 809,000 vehicles.
- Electric and plug-in hybrid vehicle exports more than doubled to 435,000 units.
- Domestic passenger car sales fell 23.4% in May, marking the seventh consecutive monthly decline.
- BYD's overseas sales in May increased by 80% to over 160,000 vehicles.
- Analysts predict China's annual passenger car exports could grow 40% in 2026, with EVs up 80%.
China's passenger car exports saw a significant surge of 73% year-on-year in May, reaching approximately 809,000 vehicles, according to the China Association of Automobile Manufacturers. This increase is attributed to higher global fuel prices, particularly gasoline and diesel, which have boosted interest in electric vehicles (EVs).
Exports of pure EVs and plug-in hybrids more than doubled from the previous year to about 435,000 units, representing over half of the total passenger car exports for May. This strong export performance contrasts with domestic sales, which fell 23.4% year-on-year to 1.44 million vehicles, marking the seventh consecutive month of decline. Sales of internal combustion engine vehicles specifically dropped nearly 42%.
Chinese automakers, including BYD, are actively expanding their international presence. BYD, the world's largest EV maker by sales, reported selling over 160,000 vehicles abroad in May, an 80% increase from the prior year, and aims for 1.5 million overseas sales this year. This international push is partly driven by intense price competition and reduced profitability in the domestic Chinese market.
Analysts anticipate continued strong momentum for China's car exports. UBS forecasts a roughly 40% rise in annual passenger car exports for 2026, with EV exports potentially increasing by 80%. S&P Global Ratings projects a 30% to 50% year-on-year growth in exports for 2026. Globally, the International Energy Agency noted that EVs constituted about one in four new cars sold last year and expects this share to grow to nearly 30% by 2026.