BUSINESS

China’s Auto Exports Soar While Domestic Sales Slump

Published: Feb. 14, 2026 1:10 a.m. GMT+8

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Cars wait to be loaded onto ships for export at the Zhujiaqiao terminal of Wuhu Port in East China’s Anhui province on Jan. 8, 2025. Photo: VCG

China’s auto exports saw a dramatic rise in January, even as domestic sales continued to slump, underscoring the industry's increasing reliance on foreign markets amid sluggish demand at home.

According to the China Association of Automobile Manufacturers (CAAM), car shipments abroad surged by 44.9% year-on-year, reaching 681,000 units in January. Meanwhile, domestic sales fell 14.8%, totaling 1.7 million units. This divergence continues a trend from late 2025, when exports soared while domestic sales cooled.

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China’s auto exports surged 44.9% year-on-year in January 2026, while domestic sales dropped 14.8%.
Exports now make up 29.6% of passenger car sales; hybrid vehicle exports nearly doubled year-on-year in January.
Facing excess capacity and weak domestic demand, Chinese automakers are expanding abroad and building overseas plants, though export growth may spark trade friction.

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Who’s Who

BYD Co.: BYD Co. has begun production in Brazil. Their plant, which started operations in mid-2025, has an annual production capacity of 150,000 vehicles. This move is part of a broader trend among Chinese automakers to internationalize and establish production facilities abroad due to domestic overcapacity and a push for overseas market expansion.

Great Wall Motor Co. Ltd.: Great Wall Motor Co. Ltd. (长城汽车股份有限公司) started production at its plant in Brazil in mid-2025. This facility has an annual production capacity of 50,000 vehicles. This move highlights wider efforts by Chinese automakers to establish production facilities abroad as a key strategy for internationalization and to manage increasing exports.

Guangzhou Automobile Group Co. Ltd.: Guangzhou Automobile Group Co. Ltd. (GAC) is a Chinese automaker that is expanding its international presence. The company has announced plans to build a factory in Brazil. Reports suggest that GAC may acquire and upgrade an existing production line from another automaker to establish its presence in the Brazilian market. This move aligns with a broader trend of Chinese automakers building production facilities abroad.

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What Happened When

2025：: China’s auto manufacturing sector operated at a capacity utilization rate of just 73.2%, according to the National Bureau of Statistics.

2025：: Exports of hybrid new-energy vehicles surged 2.3-fold year-on-year according to CAAM.

January 2025：: Exports accounted for 18.5% of China’s total passenger car sales.

Mid-2025：: BYD Co. and Great Wall Motor Co. Ltd. began production at their plants in Brazil with annual capacities of 150,000 and 50,000 vehicles, respectively.

Late 2025：: China's car exports began to soar, while domestic sales started to cool, marking the beginning of the trend in divergent growth between exports and domestic sales.

January 2026：: China’s auto exports surged by 44.9% year-on-year to 681,000 units; domestic auto sales fell 14.8% to 1.7 million units compared to a year earlier.

January 2026：: Passenger vehicle exports rose by 48.9% to 589,000 units, while domestic passenger vehicle sales dropped 19.5% to just below 1.4 million units.

January 2026：: Exports accounted for 29.6% of China’s total passenger car sales, a significant increase over the previous year.

January 2026：: Exports of hybrid new-energy vehicles nearly doubled year-on-year.

Late January 2026：: Cui Dongshu, secretary general of the China Passenger Car Association, told a seminar that exports would be the key driver of the industry in 2026.

Since January 1, 2026：: Four Chinese government departments, including the Ministry of Commerce, required exporters of pure electric passenger cars to obtain an export license before exporting.

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