China's passenger car exports top 2025 total in eight months as EV demand surges

China's passenger car exports in the first eight months of this year have already exceeded the country's total for all of last year, industry data showed, even as domestic sales continued to slide.

Passenger car exports rose 67.1% year-on-year in August to roughly 890,000 units, according to the China Association of Automobile Manufacturers (CAAM). The surge was led by plug-in hybrids and pure electric vehicles.

More than 6.2 million passenger vehicles were shipped abroad between January and August. By comparison, total vehicle exports last year stood at 7.1 million units, including about 6 million passenger cars.

S&P Global Ratings expects China's full-year passenger vehicle export growth to land between 50% and 70%. The world's largest car exporter has outperformed expectations this year, helped by competitive pricing and product quality, said Stephen Chan, an associate director at the ratings agency.

"It's likely that strong export growth will largely mitigate the domestic weakness," Chan said.

At home, the picture is starkly different. Passenger car sales fell 25.6% year-on-year in August to just under 1.5 million vehicles. The domestic market is grappling with intense competition and price wars, while a slowing economy has weighed on consumer confidence.

A recent energy shock linked to the Iran war and rising fuel prices has pushed more drivers of gasoline and diesel vehicles toward electric models in recent months.

Hefty tariffs have effectively shut most Chinese-made passenger cars out of the United States market. In response, China has expanded sales to Europe, Latin America, Africa and Southeast Asia, while Chinese automakers are increasingly setting up factories overseas.