BUSINESS

China’s Car Exports Hit Record Even as Domestic Demand Slows

Published: Dec. 12, 2025 7:28 p.m. GMT+8

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China’s domestic auto sales cooled in November while exports surged to a record high on strong demand for new-energy vehicles (NEVs), a divergence that underscores the need for Beijing to maintain policies to boost car sales at home.

Domestic vehicle sales fell 4.4% from a year earlier to 2.7 million units, while exports jumped 48.5% year-on-year to 728,000 units, according to data released Thursday by the China Association of Automobile Manufacturers (CAAM). NEVs drove the export surge in the month, with their overseas shipments jumping 260% to 300,000 units.

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China’s domestic auto sales fell 4.4% year-on-year in November 2025, while exports surged 48.5% to a record 728,000 units, led by NEVs (up 260%).
Trade-in subsidies drove over 11.2 million vehicle sales in the year and will continue in 2026, but subsidy amounts are likely to be reduced.
Total auto sales for the first 11 months rose 11.4% to 31.1 million units; exports are forecast to surpass 7 million vehicles for the year.

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Who’s Who

UBS Group AG: UBS Group AG's head of China automotive research, Paul Gong, observed that market demand showed signs of weakening even before the year-end expiration of stimulus measures, indicating a negative outlook for the market. UBS expects subsidies for vehicle trade-ins to decrease by 5,000 yuan in 2026 compared to 2025 levels.

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What Happened When

First 11 months of 2025：: Total auto sales increased 11.4% year-on-year to 31.1 million units. Domestic car sales rose 9.7%, exports increased 18.7% to 6.3 million units.

As of fourth quarter 2025：: Many automakers released conservative sales guidance, indicating perceived market weakness before the expiration of current stimulus.

October 2025：: Domestic passenger car sales grew by 4.4% year-on-year, marking positive growth before the November decline.

November 2025：: China’s domestic auto sales fell by 4.4% year-on-year to 2.7 million units, while exports surged 48.5% year-on-year to 728,000 units. NEV exports rose 260% to 300,000 units.

By December 2025：: CCTV reported that, in the first 11 months of 2025, trade-in programs accounted for more than 2.5 trillion yuan in sales of related goods, including over 11.2 million vehicles, citing commerce ministry data.

December 12, 2025：: China Association of Automobile Manufacturers (CAAM) released November 2025 auto sales and export data.

December 12, 2025：: Central Economic Work Conference concluded, emphasizing optimizing policies for equipment updates and consumer goods trade-ins.

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