China Carmakers Accelerate Overseas Push as Domestic Growth Slows
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At the Zhujiaqiao port area of Wuhu Port, operated by Anhui Port Group, large numbers of vehicles, including Chery models, are lined up for export. Photo: VCG
Major Chinese carmakers are setting ambitious overseas sales and localized production targets for 2026 to offset a cooling domestic market.
Hong Kong-listed Chery Automobile Co. Ltd., the country’s top auto exporter, aims to ship more than 1.5 million vehicles overseas in 2026. The company saw its 2025 exports jump 33.2% year on year to 1.3 million units. Overseas markets accounted for 49.2% of its sales volume and 52.4% of its revenue last year, driving its profit growth as domestic vehicle retail sales rose by just 1%. Chery currently operates 10 manufacturing plants in countries including Spain and Brazil.
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- Major Chinese automakers, including Chery, BYD, Leapmotor, and Geely, are expanding overseas sales and local production to offset slow domestic growth; Chery targets 1.5 million exports in 2026, BYD aims for 1.3 million.
- Tariffs are rising: Mexico raised tariffs on Chinese autos from 20% to 50% in 2026, and Brazil will reach a 35% rate for NEVs by July 2026.
- China’s total auto exports are projected to increase 4.3% to 7.4 million in 2026, after a 21.1% jump to 7.1 million in 2025.
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Who’s Who
- Chery Automobile Co. Ltd.
- Chery Automobile Co. Ltd. is China's top auto exporter. The company aims to ship over 1.5 million vehicles overseas in 2026, building on 1.3 million units exported in 2025. Overseas markets contributed significantly to its 2025 sales and revenue, driving its profit growth. Chery operates 10 manufacturing plants abroad, including in Spain and Brazil.
- BYD Co. Ltd.
- BYD Co. Ltd. is expanding its international presence significantly, aiming for 1.3 million overseas vehicle sales by 2026, a 24% increase from its 2025 sales of over 1 million units outside China. The company is rapidly growing its localized production, with operational plants in Thailand and Brazil, and new facilities planned for Hungary and Turkey.
- Zhejiang Leapmotor Technology Co. Ltd.
- Zhejiang Leapmotor Technology Co. Ltd. is a Hong Kong-listed Chinese automaker. They anticipate their first overseas plant in Spain to begin production in October. The company aims for overseas sales of 100,000 to 150,000 vehicles in 2026, a significant increase from 67,000 units in 2025.
- Geely Automobile Holdings Ltd.
- Geely Automobile Holdings Ltd. aims to boost exports by 52% to 640,000 units in 2026. Instead of building new facilities, Geely plans to leverage existing local capacity, as exemplified by its November 2025 partnership with Renault SA for manufacturing and sales networks in Brazil. The company's chairman believes global auto capacity is in surplus, favoring expansion without new plant construction.
- Renault SA
- Geely Automobile Holdings Ltd. plans to leverage Renault SA's manufacturing and sales networks in Brazil through a partnership established in November 2025. This collaboration will help Geely boost its exports by 52% to 640,000 units in 2026, utilizing existing local capacity rather than building new facilities.
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What Happened When
- 2025：
- Chery's overseas markets accounted for 49.2% of sales volume and 52.4% of revenue, with exports reaching 1.3 million units (a 33.2% year-on-year increase).
- 2025：
- BYD sold more than 1 million cars outside China.
- 2025：
- Leapmotor sold 67,000 vehicles abroad.
- 2025：
- The Middle East was China’s second-largest auto export destination, importing around 1.4 million units.
- 2025：
- Mexico was the top destination for China’s auto exports, with shipments exceeding 600,000 vehicles.
- 2025：
- China's auto exports increased by 21.1% to 7.1 million units.
- November 2025：
- Geely partnered with Renault SA to use its manufacturing and sales networks in Brazil.
- By January 1, 2026：
- Mexico raised tariffs on Chinese auto imports from 20% to 50%.
- Late February 2026：
- A war broke out between the U.S., Israel, and Iran, disrupting the Middle East.
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