Strong overseas demand for electric and hybrid vehicles offsets weakness in China’s domestic car market
Hong Kong: China’s passenger car exports during the first eight months of 2026 have already exceeded the total recorded in 2025, driven by strong demand for electric and plug-in hybrid vehicles.
According to the China Association of Automobile Manufacturers (CAAM), passenger car exports rose 67.1 per cent year-on-year in August to about 890,000 units.
China exported more than 6.2 million passenger vehicles during the first eight months of the year, surpassing the roughly 6 million passenger vehicles exported during the whole of 2025. Total vehicle exports last year reached 7.1 million units.
S&P Global Ratings said China’s passenger vehicle exports remain on track to grow between 50 per cent and 70 per cent this year.
While export performance remained strong, domestic demand continued to weaken. Passenger car sales in China fell 25.6 per cent year-on-year in August to just under 1.5 million vehicles.
Analysts said China’s car exports have benefited from competitive pricing and improving quality standards.
Stephen Chan, Associate Director at S&P Global Ratings, said strong export growth is likely to offset much of the weakness in the domestic market.
The shift towards electric vehicles has also accelerated in recent months as higher fuel prices encouraged more drivers to move away from petrol and diesel-powered vehicles.
Although tariffs have largely limited Chinese passenger car sales in the United States, exports have continued to expand across Europe, Latin America, Africa and Southeast Asia.
Chinese automakers have also continued to increase their overseas manufacturing presence through new factory investments in international markets.
Source: Emirates 24|7