China may have topped the list of car exporting countries, but it might face a slowing down phase in demand of car export. Recently, the China Association of Automobile Manufacturers revealed that the vehicle export may grow 5.8% to reach 6.2 million units in 2025. However, the increase rate is lower than the previous year – 19.3%.
The association may not have provided a detailed number of vehicles but revealed that the percentage of electric vehicle exports fell to 10.4% in the last year. Let’s take a look at the units of vehicles exported to understand where the China second hand cars market stands.
Top Car Exporting Brand from China
BYD, Cherry, MG, and some other renowned Chinese automobile brands had been leading the automobile export market in China. Besides the introduction of A-grade electric Chinese cars – SUVs and Sedans, these brands are known in the market for innovation and excellent manufacturing features. For example, BYD is known for an advanced car battery technology called blade battery which offers more than 5000 cycles of charging and discharging.
Let’s look at the top Chinese automobile-exporting brands:
| Rank | Automobile Brand | No. of Units Exported |
| 1 | BYD | 66,652 |
| 2 | Chery | 64,176 |
| 3 | MG | 29,899 |
| 4 | Changan | 25,407 |
| 5 | Haval | 21,653 |
| 6 | Geely | 19,637 |
The above are the top Chinese brands that have been leading the automobile export from China, besides manufacturing some of the best electric vehicles that the world has seen! However, China faces several challenges in maintaining its position as a top automobile exporting country in the world.
Trends in Chinese Automobile Export
During January 2022 and 2023, the Chinese car manufacturing industry showed an increase of 59% and 74% respectively. It slowed down to 26% only in the same period during 2024. Similarly, the country became the largest exporter of China second hand cars, both electric and hybrid, during 2022 and 2023. However, in 2024 data shows a clear indication of slowing down in demand.
China may have utilized the opportunity of global adoption of EVs and an exodus of Western automobile manufacturers; the decreasing trend in automobiles may be due to increasing international trade barriers and increasing competition from Chinese overseas plants.
Trend in Chinese Pre-owned Automobile Export
Keeping aside the present reduction in the automobile export, if you focus on the reasons of its increasing export, you see an overall effort from the government and private car manufacturing companies.
Especially in the used car segment, in March 2023, China saw a nationwide used car export initiative. Government authorities simplified the vehicle transfer registration and licensing applications. Local governments also showcased measures to support local businesses to improve their global competitiveness.
Despite the overall initiative to increase China second hand cars export, Japan exported over one million pre-owned cars in 2024, while USA and South Korea exported around 900,000 and 500,000 cars respectively.
Considering the huge opportunity in the used-car export market, the Chinese commerce ministry aimed to foster sustainable innovation and high-quality products and services.
The main reasons for the decreasing trend in Chinese Automobile
Chinese cars SUVs, EVs and other passenger cars have been showing a decrease in the exporting trend. The decreasing trend of exporting Chinese automobiles seems to have failed all the initiatives in China to boost car exports. Let’s look at some possible reasons for the decrease in the export of Chinese cars.
International Trade Barriers
China second hand cars or new passenger vehicles depend on the demand for Chinese cars. However, the demand for Chinese cars is undermined by continuous trade restrictions on Chinese products, including the recent increase of tariff on Chinese products (from 34% to 125%).
Besides the US, other countries are also focusing on increasing their domestic automobile production. As a result, the increase of tariffs against Chinese products.
Chinese overseas plants as competitors
China had been the main center of production for the Chinese OEMs, but the recent trend shows a decentralized approach. By 2027, a significant increase in Chinese overseas manufacturing plants will decrease the total number of Chinese export. For example, BYD will become the major company to contribute to the increase of overseas car manufacturing. The total Chinese overseas production is set to reach approximately 2 million vehicles.
Joint Venture Complexities
Many Chinese automobiles that manufacture electric Chinese cars – SUVs, Sedans, etc. are in a joint venture with Western automobile manufacturers. These companies may have difficulties exporting to markets where their Western partners have good market share. Exporting from China to such markets would mean competing against their own products.
Such joint venture-related complexities make it difficult for Chinese car manufacturers to increase their exports to other markets.
Decrease in Global EV Sales
In the global market, there is a significant decrease in electric vehicles. Data shows approximately 8% increase of EV sales through September 2024 compared to 44% in 2023. It is one of the main reasons for the decrease in Chinese EV exports to other markets.
Conclusion
China may have gained the top place in exporting automobiles to other parts of the world, but the recent trend tells otherwise. Decreasing demand in the international market, trade barriers, and joint venture complexities make it difficult for the Chinese automobile manufacturing industry to improve its performance. However, there is incredible scope for the China second hand cars market to amp up its game and restore its position to the top once again.
