Chinese electric vehicle exports rose 147.8% year on year in July, helping manufacturers offset weaker sales in their domestic market.
Total EV deliveries in China fell 5% to 980,000 units during the month, while global sales of electric and hybrid vehicles increased 9% to 1.85 million units, Retail News Asia reported.
China’s overall vehicle exports also climbed sharply, reaching 923,000 units in July, up 88.2% from a year earlier. Domestic car sales, however, fell 21.1% to 1.47 million units, extending a decline that has now lasted 10 months across mainland dealerships.
The weakness has been significant over the first half of the year, when domestic vehicle sales dropped by 2.3 million units, a 20% decline.
BYD turns to overseas markets
BYD highlights the growing dependence on international markets. The Shenzhen-based carmaker’s domestic sales fell 35% during the first seven months of the year, while its overseas deliveries increased 79%.
Brazil and Britain have emerged as BYD’s two biggest markets outside China this year.
Chinese brands now account for almost a quarter of EV shipments into Europe. European EV sales increased 33% in July to 450,000 units, helped by incentives in Spain, Germany, France and Britain.
Chinese manufacturers are also increasingly looking beyond exports by setting up vehicle assembly plants in Europe.
Emerging markets drive demand
EV demand in Southeast Asia, Latin America and other Asian markets outside China has grown much faster than in major Western markets.
According to the International Energy Agency, EV sales in these markets rose 96% through July to 1.7 million units.
North America recorded a sharp decline instead. EV sales in the region fell 27% in July to 140,000 units following the end of US federal tax credits in September 2025.
Chinese carmakers have continued to gain ground in Mexico despite higher trade barriers. Chinese brands accounted for 17% of new vehicle sales in the country during the first half of the year, selling 137,525 vehicles. Mexico imposed a 50% tariff on Chinese vehicle imports from January 1.
As competition intensifies in China and profit margins come under pressure, manufacturers are increasingly looking overseas for growth. Carmakers are securing shipping capacity and exploring local production sites in Europe and Southeast Asia as they prepare for potentially higher trade barriers.
