According to the latest statistics from the China Association of Automobile Manufacturers, from January to August 2025, China’s total auto exports reached 4.292 million units, a year-on-year increase of 13.7%. New energy vehicle exports performed particularly well, reaching 1.532 million units, a year-on-year increase of 87.3%.
Did you know that China has more domestic brands making more cars than the world’s biggest car market can absorb because the industry is striving to hit production targets influenced by government policy, instead of consumer demand, a Reuters examination has found.
Interestingly, that makes turning a profit nearly impossible for almost all automakers here, industry executives say. Chinese electric vehicles start at less than USD10,000; in the U.S., automakers offer just a few under USD35,000.
From January to August 2025, China’s auto exports totalled 4.29 million units, a 13.7% increase year-over-year, with new energy vehicle (NEV) exports growing significantly to 1.53 million units, up 87.3% from the previous year. This strong export growth was attributed to government policies supporting consumption, such as subsidies, and the release of new models, contributing to a robust overall automotive market performance in China.
Key Statistics
Total Auto Exports: 4.29 million units (January-August 2025), up 13.7% year-on-year.
New Energy Vehicle (NEV) Exports: 1.53 million units (January-August 2025), a substantial increase of 87.3% year-on-year.
Drivers of Growth
Pro-Consumption Policies: The implementation of government measures like personal consumption loan subsidies boosted demand for vehicles.
New Model Launches: A strong pipeline of new vehicle models from automakers fuelled consumer interest.
China Association of Automobile Manufacturers (CAAM) Data: The data from CAAM highlights a strong and expanding Chinese automobile market.
Overall Industry Stability: Efforts to curb over-competition and stabilise the market have been effective, supporting the growth momentum.
Export destinations: Chinese automakers are increasingly expanding into markets in South America and Southeast Asia (like Chery in Malaysia). Chinese brands are also competing aggressively in Europe, particularly with new energy vehicles.
Shift to electrification: The rapid growth in NEV exports highlights the Chinese auto industry’s move toward electrification. This shift is reshaping the global automotive market, with Chinese manufacturers gaining a competitive edge in technology, cost, and advanced features.
Future outlook: Despite potential headwinds such as intensifying global trade barriers, especially from the US and EU, Chinese automakers are continuing their push for global expansion. Analysts note that establishing local production facilities overseas is a key strategy for mitigating trade risks and ensuring long-term competitiveness.
GACO Auto Team
