China’s exports of passenger cars surged in April as automakers pushed to expand in overseas markets while domestic sales continued to fall, with the numbers showing how decisions made by governments and corporate managers land on ordinary buyers and workers. Exports of passenger cars from China last month jumped almost 85% from a year ago to around 796,000 vehicles, according to the China Association of Automobile Manufacturers. That was up from 748,000 vehicles exported in March.
Who Gets Pushed Around
At home, sales of passenger cars dropped 25.5% from the year before to 1.3 million vehicles, marking the sixth straight month of year-on-year declines, CAAM data showed. Domestic car demand in China has weakened because government support this year for drivers to switch to new energy vehicles was dialed back, auto analysts said, and the country’s uncertain economic outlook, triggered by a prolonged property sector downturn, has also kept some consumers from buying new cars in the world’s largest auto market.
Exports of new energy passenger vehicles, including battery electric vehicles and plug-in hybrids, jumped more than 120% from the year before to about 420,000 units. The contrast is stark: the market at home is shrinking while manufacturers chase buyers elsewhere, a familiar arrangement in which the costs of policy shifts and economic instability are borne below while the gains are pursued above.
What the Industry Is Selling
Competition among Chinese carmakers has been fierce. At the Beijing auto show last month, more than 1,450 vehicles were showcased as companies displayed their latest models and technologies, from artificial intelligence-infused cars to advanced ultrafast-charging batteries. Leading Chinese car brands such as BYD and Geely Auto are making inroads overseas.
In addition to export growth, some automakers, including BYD, have been expanding production capacity abroad by building factories in regions such as Europe and Latin America. The expansion shows how the apparatus of production keeps moving wherever profit and market access can be secured, while the people buying cars at home face weakening demand and fewer incentives.
As the war in Iran drives up petrol prices, there are growing expectations that more drivers globally will switch to EVs. One in six new vehicles sold in Australia in April were EVs, according to the Federal Chamber of Automotive Industries, and BYD was the second-highest-selling brand behind Toyota. Claire Yuan, an auto analyst at S&P Global Ratings, said higher oil and fuel prices would likely “incentivize consumers to buy EVs and this will benefit Chinese EV exports.”
Tariffs, Trade Talks, and the Gatekeepers
China’s overall passenger car exports could still rise by around 20% in 2026, according to estimates by AlixPartners, with Chinese carmakers expanding in key markets such as Southeast Asia. Beijing has also made progress with the European Union and Canada over their imports of Chinese EVs.
Some in the auto industry are closely watching trade discussions between U.S. President Donald Trump and Chinese leader Xi Jinping later this week when the American leader visits Beijing. There has been pushback from the U.S. against Chinese automakers’ access to the American market, after Chinese EVs became virtually blocked from entering the United States due to a 100% tariff imposed in 2024 by former President Joe Biden’s administration.
The whole picture is one of markets managed by states, with access opened or slammed shut by tariff walls and trade talks while manufacturers reposition themselves across borders. The people at the bottom do not get to set those terms; they absorb the consequences when support is withdrawn, prices rise, or markets are blocked.
Associated Press writer Aniruddha Ghosal in Hanoi, Vietnam contributed to this report.