China’s auto exports soar as domestic car sales continue to fall

China's car exports experienced a significant surge in October, driven by expanding overseas shipments despite weak domestic demand, the world's largest auto market reported. The China Association of Automobile Manufacturers revealed that China exported approximately 927,000 passenger vehicles in October, representing a remarkable 62.3% increase compared to the previous year. Electric vehicles and hybrids were the key factors behind this growth.

However, the domestic market faced persistent challenges, with passenger vehicle sales dropping by 27.4% to around 1.7 million units in October, as compared to October 2025. From January to October, China's total exports of passenger vehicles exceeded 8 million, a sharp contrast to 4.8 million in the same period of 2025, according to the association. Domestic car sales plummeted to 14.5 million from 19.4 million in the same period of the previous year.

The decline in domestic car sales has been ongoing, spurred by cuts in government subsidies for buyers, heightened economic uncertainty, as well as a fierce price war, intense competition, and excess supply in the market. Automakers have intensified their overseas expansion as a result. In 2026, China's domestic retail car sales could reach about 18.5 million vehicles, marking the lowest level in recent years, revealed Cui Dongshu of the China Passenger Car Association.

Nevertheless, car exports could surpass 10 million, according to Cui and other auto analysts. "Exports are becoming a central growth driver for some Chinese automakers as domestic demand remains weak," stated Chris Liu, a senior analyst at the technology research and advisory group Omdia, based in Shanghai.