China's Auto Exports Surge While Domestic Sales Slump

In June 2026 China exported more than 900,000 passenger vehicles, an 11 % increase over the same month a year earlier, bringing first‑half‑year exports to 4.4 million—up 72 % YoY. Electric and plug‑in hybrid models accounted for about 60 % of the monthly total, marking the first time fully electric cars made up more than half of China's monthly export volume.

Domestic demand weakened sharply; vehicle sales fell 26 % YoY in June to roughly 1.5 million, with total sales of 8.3 million in the first six months. The slowdown is linked to intense price wars, a prolonged real‑estate crisis and reduced government subsidies for EV purchases.

China’s new‑energy vehicle (NEV) sector continued robust growth, producing 7.44 million units and selling 7.45 million from January to June 2026, with pure‑EVs representing 67 % of NEV sales. Analysts project total auto exports could reach 10 million vehicles in 2026, a 30‑50 % rise from the previous year.

Globally, electric‑vehicle registrations rose 7 % YoY to 2 million units, driven mainly by Europe, which posted a record 530 000 registrations in June, up 31 % YoY. In contrast, China’s EV registrations fell 11 % and the United States saw a 13 % decline after federal incentives ended, underscoring a shift toward overseas markets for Chinese manufacturers such as BYD and Geely.