China car exports to slow from ‘supercharged’ growth, group says
Demand from the Middle East remains strong and will probably drive much of the growth in 2027
According to a briefing from China’s Passenger Car Association (PCA) on Monday, growth in Chinese car exports is expected to slow down to 10% in 2027 after the surge observed in 2026. This deceleration is attributed to key markets imposing higher tariffs or import quotas to safeguard their local industries. The forecast comes as Chinese automakers confront growing backlash from overseas markets, with regulators in the EU, Thailand, and Brazil implementing tariffs or quotas to curb the influx of Chinese exports.
While demand from the Middle East remains robust and will likely fuel much of the growth in 2027, overall exports are projected to shift from supercharged expansion to a medium-to-fast pace. Plug-in hybrids and extended-range electric vehicles experienced a remarkable 168% surge in exports during the first ten months of 2026, totaling 1.77 million units.
Meanwhile, all-electric vehicle exports grew by 124%, reaching 1.77 million units. However, domestic demand for passenger vehicles in China saw a sharp decline in October, falling by 27% to 1.64 million units due to scaled-back subsidies and a weakening economy. Despite the overall slowdown, the share of electric vehicles and hybrids in new car sales has been climbing, reaching 67% in October according to PCA data.
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