China’s carmakers eye record 12 million overseas sales in 2026 as ‘go global’ plan pays off

Chinese automakers are optimistic about their overseas sales, with projections indicating a record 12 million vehicles could be sold outside China by 2026. This goal is part of the country's "go global" strategy, which has seen significant success in recent years. The outlook is buoyed by the current surge in exports driven by geopolitical factors such as the Middle East conflict, which has led to an increase in fuel prices and heightened consumer interest in electric vehicles (EVs).

Leading Chinese car manufacturers like BYD and Chery Automobile have been actively expanding their international presence, establishing themselves as formidable players in markets traditionally dominated by international brands. For instance, BYD, the world's largest EV manufacturer, reported an impressive 85.7% year-on-year increase in sales during the first eight months of 2026, surpassing 1.16 million units. Similarly, state-owned Chery Automobile saw its exports rise by 68.2% to 1.34 million units over the same period.

Industry experts attribute this growth to a sluggish domestic market and the global shift towards electric vehicles, which are often more profitable in overseas markets due to higher prices. Chinese carmakers enjoy a considerable net margin of 20,000 yuan (approximately $2,975) per vehicle in foreign markets, four times higher than in domestic ones.

China's shift towards becoming the world's largest vehicle exporter, surpassing Japan in 2023, has further propelled this expansion. The nation's automotive sector is now seeing a potential net margin of 20,000 yuan per car in overseas markets, four times higher than at home. While there may be some slowdown in growth momentum in 2027 due to guidelines set by Beijing and a possible reduction in tax rebates, industry analysts remain confident in the long-term growth trajectory for Chinese carmakers entering various markets where demand for EVs is on the rise.