From “Surge” to “Deep Dive”: China’s Auto Export Battle

Exports are no longer just a bonus—they have become a key factor determining the success or failure of automakers. In Q1 2026, China’s auto export data reignited market excitement: 954,000 new energy vehicles (NEVs) were exported, a year-on-year surge of 116.2%; March alone saw 371,000 units shipped, setting a record high. Even more intriguing is the structural shift—out of every 100 vehicles exported, 43 are now NEVs.

What was once a “rapid surge” has become the new normal, and a race for qualitative “deep dive” has begun. China’s auto globalization is moving from the first act of pursuing scale to the second act of building full-value-chain competitiveness.

BYD’s Overseas Expansion

1. “Dual-Engine Drive” and “Multi-Point Growth”: The Structural Secret Behind Expansion

Impressive growth is not solely a story of new energy vehicles. A closer look at the data reveals a dual-engine strategy: “fuel vehicles stabilizing the base, NEVs expanding the increment.” In Q1, alongside 954,000 NEVs exported, around 1.272 million conventional fuel vehicles and other non-NEVs were shipped, still accounting for over half of total exports. This indicates that China’s automotive global competitiveness is comprehensive.

The market landscape also shows a clear pattern of “multi-point growth.” Among the top ten export destinations, Russia, the UAE, and Brazil lead, while European countries like the UK, Italy, and Belgium also feature prominently. The NEV export map is even more diverse, with Brazil, the UK, Belgium, the UAE, Italy, Australia, Germany, Thailand, and Spain all ranking high. Chinese automakers are no longer confined to emerging markets—they are achieving deep penetration in high-value, mature markets like Europe.

This structural shift stems from a fundamental improvement in product capabilities and a precise understanding of global demand. Today, exports are driven by more than just battery electric vehicles (BEVs). In February 2026, plug-in hybrid (PHEV) and hybrid electric vehicles (HEV) together accounted for 23% of exports. In overseas markets where charging infrastructure is limited but high fuel prices are a concern, PHEVs offer a superior solution. Chinese automakers, leveraging technological leadership in plug-in hybrids and full-chain cost advantages, have successfully seized this structural opportunity.

2. From “Product Export” to “Ecosystem Rooting”: Top Automakers’ Global Strategy

Volume growth is only the surface—qualitative leaps are the core. Leading Chinese automakers have long moved beyond the initial stage of “trade exports,” shifting toward an “ecosystem export” approach that covers R&D, manufacturing, supply chain, branding, and service across the full value chain.

BYD is a prime example of this model. In 2025, its overseas revenue reached RMB 310.7 billion, with overseas gross margins even surpassing domestic levels. This performance is supported by its global production network and proprietary logistics system. From delivering 90,000 vehicles one year after its Thailand plant began operation, to rolling out the first car from its Brazil plant in just 15 months, and establishing bases in Hungary and Indonesia, BYD has built a solid foundation of “global R&D + local manufacturing.” The deployment of eight self-owned roll-on/roll-off ships further gives the company full control over its supply chain.

Lianyungang, Jiangsu: Ro-Ro ship docked at berth, loading new energy vehicles for export

Chery, through its relentless focus on localization, has topped China’s passenger car export rankings for 23 consecutive years. Its core strategy is “In Somewhere, For Somewhere.” In Europe, Chery partners with local factories to expand production while offering on-site services and extended warranties for European customers. In Southeast Asia, its service network guarantees “2-hour rapid response and 24-hour problem resolution.” Today, Chery operates over 11,000 service outlets worldwide, truly transforming from “selling cars” to “establishing roots.”

Geely, SAIC, and Great Wall Motors have also showcased their strengths. Geely’s Q1 exports rose 126% year-on-year, with NEVs accounting for over half. SAIC established its first “300,000-unit-level” market in Europe, with its MG brand becoming the best-selling Chinese brand locally. Great Wall Motors has built full-process bases in Thailand and Brazil, with a sales network covering 170 countries worldwide.

Changan Automobile’s Brazil plant officially begins production, with Brazilian President Lula attending the inauguration.

At the same time, Chinese automakers are systematically building local sales and after-sales networks, providing long-term, reliable service to ensure a worry-free ownership experience for overseas customers, thereby establishing sustainable global competitiveness. Some joint venture brands have also leveraged China’s manufacturing strengths to succeed abroad. Their secret lies in cleverly combining China’s production advantages with the parent company’s global network.

3. Supply Chain “Legions” on Expedition: Building Global Resilience with a “China Chassis”

The globalization of complete vehicles inevitably requires a collective expedition of the entire industry chain. China’s confidence in automotive exports lies not only in the vehicles themselves but also in having the most complete and responsive global supply chain. Today, this supply chain is systematically expanding overseas.

Leading battery manufacturers are at the forefront. CATL’s production bases in Thuringia, Germany, and Debrecen, Hungary, are already supplying mainstream automakers like BMW and Mercedes in volume. Gotion High-Tech, EVE Energy, and Sunwoda are also actively expanding in Europe, North America, and Southeast Asia. This strategy goes beyond following customers—it proactively optimizes global capacity allocation.

More profoundly, this “expedition” has extended beyond the battery sector. Following automakers, Chinese companies in drive-by-wire chassis, smart cabins, LiDAR, and automotive chips are accelerating their overseas expansion, forming industrial clusters in Hungary, Mexico, Thailand, and elsewhere. This “vehicle production + local supply chain” cluster model not only reduces logistics and tariff costs but also effectively navigates an increasingly complex trade environment, creating hard-to-replicate systemic competitiveness. At the same time, facing green barriers such as the EU’s new battery law and carbon tariffs, leading Chinese suppliers are accelerating the shift to low-carbon manufacturing and deploying full life-cycle carbon footprint management, turning their advantage from “cost” to “green.”

4. Navigating the Deep Waters: The Future of Value Competition and Ecosystem Synergy

The challenges ahead are clear. Trade environments are becoming increasingly complex, with some markets raising entry barriers through tariffs and policies. Competition is intensifying—not only against global giants but also in close quarters with local brands. The old model of relying solely on product cost-performance is no longer sustainable. Future competition will revolve around comprehensive value: brand strength, technological sustainability (such as the industrialization of semi-solid and solid-state batteries), depth of localized services, and data compliance capabilities.

The strong export performance in Q1 is a concentrated payoff of decades of development in China’s automotive industry. It marks the beginning of a new era: China’s auto globalization is moving from Phase 1.0—“Made in China, Supplied Globally”—to Phase 2.0—“Made Globally, For the World.” Future winners will rely not just on speed and scale, but on lasting value created through deep local operations, green technology leadership, and global brand building.

2025 China International New Energy Vehicle Industry Chain Overseas Series Events

On this journey, opportunities and challenges coexist, and collaboration within an ecosystem outweighs going it alone. Our association is committed to being the most reliable partner for China’s automotive industry chain in its globalization journey.

Brand Event – China International New Energy Vehicle Supply Chain Conference & Overseas Expansion Forum

We offer end-to-end services, from interpreting target market policies and regulations, investment risk alerts, and localized compliance consulting, to connecting overseas talent, facilitating cross-border technology collaboration, and international brand promotion. We believe that only by working together can we navigate cycles and succeed in the deep waters of globalization.

Investment and Trade Fair Co-Hosted with Foreign Embassies in China

We welcome all automotive industry peers aiming for the global market to join us in exploring new pathways and sharing fresh opportunities.