China’s passenger car exports are up 80% in June as EV demand grows, while sales drop at home

HONG KONG — China’s passenger car exports rose 80% in June from a year ago, driven mostly by robust demand for electric vehicles, even as domestic sales plummeted 26%.

Chinese passenger vehicle exports surged 72% in the first half of this year to more than 4.4 million, the China Association of Automobile Manufacturers said.

But sales in China still were more, at about 8.3 million for January-June and about 1.5 million passenger cars in June.

Passenger automobile exports from China were over 905,000 last month, vs 809,000 in May.

The domestic car market in China has been under pressure, with the saturated market being hit by intense pricing wars. Demand has been affected by a prolonged housing market collapse that has weighed on household budgets. The effect has been felt in reduced government assistance for EV purchases as well.

Sales of light vehicles like passenger cars in China are seen likely to decline 10%, partially because some prospective purchasers may hold off until costs come down more, consultancy AlixPartners said.

Chinese carmakers like as BYD are growing worldwide and building plants in major markets. That can assist increase their profitability but it increases friction with trading partners.

Stephen Chan, an analyst at S&P Global Ratings, said China’s passenger car exports might rise 30% to 50% from a year earlier for all of 2026. Auto analysts have also projected that increasing gasoline prices from the Iran war would increase global demand in EVs.

AlixPartners recently said Chinese exports might climb to nearly 10 million automobiles in 2026 from around 7 million this year.

Chinese automobile brands are also gaining a foothold in Canada, after it accepted an annual quota of 49,000 EVs from China at a low tax rate. Auto analysts are watching to see whether this could open the door to exports to the U.S. market, where Chinese EV shipments have been essentially barred by heavy tariffs.

Last month, Sweden-based EV company Polestar, owned by Chinese auto group Geely, announced it had been blocked by the U.S. Commerce Department from selling vehicles in the U.S. starting with the 2027 model year.

“Going global has become a necessity” for automakers in China, Wei Haigang, head of manufacturer GAC International, said at an automobiles show in Hong Kong in June. “Companies that do not go abroad will find it extremely hard to survive in China’s highly competitive environment.