China’s Auto Exports Grow Over 10% in H1, with Plug-in Hybrids Shining

At a press conference held by the State Council Information Office today, Wang Lingjun, Vice Minister of the General Administration of Customs, stated that despite increasing external pressures and challenges, China’s exports have maintained steady growth. In the first half of the year, the total export value exceeded 13 trillion yuan for the first time in history for the same period, achieving a rapid year-on-year growth of 7.2%.

Automobiles serve as a crucial pillar of China’s export trade. According to data from the China Association of Automobile Manufacturers (CAAM), China’s total auto exports reached 3.083 million units in the first half of 2025, marking a 10.4% year-on-year increase.

On July 12, Wu Songquan, Senior Chief Expert at the China Automotive Technology and Research Center and Chief Engineer of the China Automotive Strategy and Policy Research Center, stated at the 2025 China Auto Forum that during the “15th Five-Year Plan” period, China’s auto exports are expected to peak, with localized production in overseas markets becoming a new trend.

For many years, China’s auto exports hovered around 1 million units annually. It was not until 2021 that exports began to surge. From 2021 to 2024, China’s auto exports were 2.01 million, 3.11 million, 4.91 million, and 5.86 million units, respectively.

New energy vehicles (NEVs) have become a major driver of growth in auto exports. In the first half of this year, NEV exports reached 1.06 million units, including 1.011 million passenger vehicles, representing a 71.3% year-on-year increase.

A report from Zhineng Auto indicates that while China’s auto exports maintained overall growth in the first half of the year, the growth rate gradually slowed, accompanied by significant structural changes. Passenger and commercial vehicle exports remained substantial, with passenger vehicles reaching 2.581 million units and commercial vehicles at 502,000 units. In terms of energy structure, traditional internal combustion engine (ICE) vehicle exports declined to 2.023 million units, while NEV exports surged to 1.06 million units, with battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) performing particularly well.

On the other hand, as Chinese automakers ramp up investments in overseas channels and branding for passenger vehicles, their market share in segments such as A-class, B-class, and SUVs is steadily expanding. Improvements in domestic supply chain efficiency and intelligent technology have enhanced the cost-performance ratio and competitiveness of Chinese passenger vehicles in overseas markets.

Industry experts believe that the rapid growth in passenger vehicle exports reflects the release of consumer demand from individual users, contrasting with the bulk purchases traditionally seen in commercial vehicle orders. This structural shift signifies that the export market is evolving from single-driver demand to diversified consumption, relying more on comprehensive factors such as product strength, brand recognition, and after-sales support.

Meanwhile, PHEVs are experiencing rapid growth in overseas markets. In the first half of this year, BEV exports reached 670,000 units, up 40.2% year-on-year, while PHEV exports surged to 390,000 units, a staggering 210% increase year-on-year.

Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), noted that the global auto market is undergoing an “electrification reshuffle.” European bans on ICE vehicles are forcing automakers to transition, but local manufacturers (e.g., Volkswagen, BMW) lag behind China by 3–5 years in PHEV technology maturity. In Southeast Asia (e.g., Thailand, Indonesia), ICE vehicles still dominate with over 80% market share, but governments have introduced EV subsidies. Meanwhile, oil-rich Middle Eastern markets (e.g., Saudi Arabia, UAE) are shifting toward green transformation, aiming for 30% EV penetration by 2030, creating urgent demand for cost-effective models.

“Chinese PHEVs are rapidly capturing these markets with their ‘technological leadership + cost advantages,'” Cui said. In 2023, BYD’s exports grew by 307% year-on-year, with PHEVs accounting for 45% of the total. Geely’s acquisition of Malaysia’s Proton, coupled with the introduction of Lynk & Co’s hybrid technology, boosted Proton’s market share from 10% to 18% in just six months. Great Wall’s new PHEV plant in Thailand’s Rayong Province, with an annual capacity of 150,000 units, is targeting the Southeast Asian market.

Notably, while the EU imposes high tariffs on Chinese BEVs, PHEVs remain subject to a standard 10% tariff. This policy discrepancy has become a “breakthrough” for Chinese automakers in the European market.

Data from market analysis firm Dataforce shows that in Q1 2025, Chinese auto sales in Europe reached 148,000 units, up 78% year-on-year, with market share rising from 2.5% to 4.5%. PHEV sales skyrocketed by 368%, becoming the core engine of growth.

“Europe does not classify PHEVs as EVs for tariff purposes, treating them instead as alternatives to ICE vehicles. This fills the gap in Europe’s auto industry transition, where pure EVs are not yet fully,” Cui explained. He emphasized that Chinese PHEVs leverage complete supply chain advantages, with hybrid systems costing significantly less than those of European EV models.

CAAM data reveals that among the top 10 automakers by export volume in the first half of the year, Chery ranked first with 548,000 units (up 3.1% YoY), followed by BYD with the most notable growth—472,000 units (up 130% YoY). SAIC (438,000 units), Changan (299,000 units), and Geely (236,000 units) all exceeded 200,000 units in exports.

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