HONG KONG (AP) – China’s passenger car exports recorded a sharp increase in May, driven by rising global demand for electric vehicles (EVs) and the overseas expansion of major Chinese automakers.
According to data released by the China Association of Automobile Manufacturers (CAAM) on Wednesday, passenger car exports climbed 73% year-on-year to approximately 809,000 units. The figure also marked an increase from the nearly 796,000 vehicles exported in April.
Exports of pure electric vehicles and plug-in hybrids saw even stronger growth, more than doubling from a year earlier to around 435,000 units. These models accounted for more than half of China’s total passenger car exports during the month.
Industry experts attributed part of the growing interest in EVs to higher global fuel prices linked to the ongoing conflict involving Iran, which has encouraged consumers to consider alternatives to gasoline and diesel-powered vehicles.
Chinese automakers, led by companies such as BYD, have been aggressively expanding into overseas markets, including Latin America, Asia and Europe. The push abroad comes as domestic demand faces pressure due to reduced government incentives aimed at encouraging drivers to switch to electric vehicles.
CAAM data showed that domestic passenger car sales in China fell 23.4% in May compared with the same period last year, dropping to 1.44 million units. It marked the seventh consecutive month of year-on-year declines.
Sales of vehicles powered by internal combustion engines experienced an even steeper decline, falling nearly 42% from a year earlier as electric vehicles continued to capture a larger share of the market.
Analysts remain optimistic about China’s export outlook. UBS expects China’s passenger car exports to rise by around 40% in 2026, while exports of electric vehicles could increase by as much as 80%.
“The high oil price certainly has translated into further higher interest in EVs,” said Paul Gong, head of UBS’s China automotive industry research. He noted that export performance during the first months of the year exceeded expectations, while domestic sales remained weaker than anticipated.
Claire Yuan, an automotive analyst at S&P Global Ratings, also forecast strong momentum for Chinese exports, projecting growth of between 30% and 50% this year.
Global demand for electric vehicles is also expected to continue rising. In its latest annual outlook released in May, the International Energy Agency (IEA) reported that roughly one in four new cars sold worldwide last year was electric. The agency estimates that EV sales could reach 23 million units and account for nearly 30% of all vehicles sold globally in 2026.
China remains the world’s largest producer of electric vehicles and supplies the majority of EVs sold across international markets.
BYD, China’s leading EV manufacturer, sold more than 160,000 vehicles overseas in May, representing an 80% increase compared with the previous year. The company aims to sell 1.5 million vehicles abroad this year, significantly higher than the 1.05 million exported last year.
The Shenzhen-based automaker overtook Tesla in global EV sales last year, strengthening its position as a dominant force in the rapidly expanding electric vehicle industry.
Analysts also believe that stronger export performance could improve profitability for Chinese automakers, many of which have been affected by an intense domestic price war that has squeezed margins.
Yuan added that China’s domestic auto market could recover in the second half of the year as manufacturers introduce new models and consumers return to dealerships.
