Japanese Media: China's Automotive Exports Surpass One Million Units in June

According to a July 21 report by Japanese media outlet *Toyo Keizai*, China's automotive exports exceeded one million units for the first time in June, setting a new monthly record.

Based on export vehicle data released in July for June, sales reached 1,037,800 units, an increase of 75.1% compared to the same period last year, surpassing the annual export volume of 995,000 units recorded in 2020.

China’s automotive exports have been primarily driven by electric vehicles. In 2023, exports reached 4.91 million units; in 2024, they rose to 5.895 million units; and in 2025, they are projected to reach 7.098 million units. In the first half of 2026 (January–June), sales exceeded 5 million units, up 65.3% year-on-year, showing continued acceleration in growth.

The largest growth came from new energy vehicles. Electric vehicles and plug-in hybrid vehicles (PHVs) accounted for nearly all of this increase, with combined sales reaching 523,000 units in June—an increase of 160% compared to the same month last year.

Meanwhile, conventional fuel-powered vehicles saw a year-on-year increase of 32.7%, reaching 514,000 units, indicating that Chinese manufacturers are fully committed to expanding their export efforts for internal combustion engine vehicles.

By manufacturer, Chery exported nearly one million units in the first half of this year, becoming China’s top exporter. BYD followed closely behind with approximately 800,000 units exported.

The surge in exports has offset the decline in domestic sales, with overseas markets absorbing the growth in China’s automotive production capacity. Chinese automakers describe this situation as “hot abroad, cold at home” (strong overseas demand, weak domestic performance).

From January to May 2026, the top three destinations for China’s automotive exports were Brazil, Russia, and the United Kingdom.

Exports to Brazil surged from January to May to 380,000 units—a 312% increase compared to the same period last year. Among them, new energy vehicles reached 289,000 units, up 300% year-on-year, mainly due to changes in Brazil’s electricity pricing policies. Previously, imports of new energy vehicles into Brazil were exempt from tariffs, but since 2024, tariffs have been gradually implemented, increasing the rate to 35%, matching the level applied to gasoline-powered vehicles as of July 2026. As a result, Chinese manufacturers significantly ramped up exports ahead of the tariff increases in the first half of this year.

With the change in tariff policy, Chinese automakers such as BYD, Great Wall Motors, and Changan Automobile have begun local production in Brazil. For manufacturers without local manufacturing capabilities, the future holds significant challenges.

Original article: toutiao.com/article/1871279148319754/

Disclaimer: The views expressed in this article are those of the author.