China’s passenger car exports accelerated in March as Chinese automakers pushed harder to grow sales abroad, according to figures released by an industry association. The China Association of Automobile Manufacturers said passenger car exports rose 82.4% year-on-year last month to about 748,000 vehicles, up from 586,000 vehicles exported in February.
The association also reported strong momentum for cleaner vehicle categories. Exports of new energy passenger vehicles — a group that includes battery electric vehicles and plug-in hybrids — surged more than 140% year-on-year in March to 363,000 units, which the figures also showed was up from about 276,000 units exported in February.
Several of the largest Chinese automakers have been increasing efforts in overseas markets, including by expanding production facilities outside China, the reporting said. It also noted that Chinese brands have made inroads in regions including Europe, Latin America and Southeast Asia.
Chris Liu, a senior analyst at the advisory group Omdia, said the link to the Iran conflict and broader energy conditions may not yet be fully captured in the March export numbers. “The impact of the Iran conflict hasn’t fully shown up in March data yet, but it can act as a trigger,” Liu said, adding that higher fuel prices could change consumer behavior in markets that are otherwise well suited for EVs.
Liu said that in many places, EV adoption had been slow because consumers lacked urgency. “In many markets that are structurally well suited for EVs, adoption has been slow simply because consumers lacked urgency,” Liu said. “A sharp rise in fuel prices changes that.”
The export push is occurring as Chinese automakers confront pressure in their domestic market, which has become a key factor in how companies manage demand. The reporting said domestic passenger car sales fell 19.2% last month from a year earlier to nearly 1.7 million units, marking the fifth consecutive month of year-on-year declines based on the same industry association’s data.
The association’s figures were tied to multiple domestic headwinds, including reduced government support this year aimed at encouraging drivers to switch to new energy vehicles, along with fierce competition among brands and a prolonged property sector slump that has weighed on consumer appetite for major purchases. In that context, UBS auto analyst Paul Gong said the weaker domestic sales environment is not expected to last, and that overseas growth could help offset it.
Gong said overseas demand could absorb the shortfall at home on an annual basis. “For the overall industry, the overseas market’s sales volume growth is more than enough to offset domestic decline on a full-year basis,” Gong said. He predicted overseas passenger car sales by Chinese automakers might grow by 20% or more this year compared with last year.