Chinese automakers experienced a dramatic surge in overseas shipments during May, with passenger vehicle exports climbing 73% compared to the same period last year to reach approximately 809,000 units, according to industry data released Wednesday.
The China Association of Automobile Manufacturers announced that shipments of electric vehicles and plug-in hybrid models more than doubled in May from the previous year, totaling around 435,000 units and representing over half of all passenger car exports. This increase came as elevated gasoline and diesel costs resulting from the conflict in Iran sparked greater global interest in electric alternatives.
The May figures represent growth from approximately 796,000 passenger vehicles exported in April, based on data from the China Association of Automobile Manufacturers.
Chinese car manufacturers like BYD are intensifying their international expansion efforts, focusing on markets across Latin America, Asia and Europe. This overseas push comes as domestic sales face challenges, partly due to reduced government subsidies encouraging consumers to adopt electric vehicles.
Within China, passenger car sales dropped 23.4% year-over-year in May to 1.44 million vehicles, marking the seventh consecutive month of declining sales compared to the previous year, the CAAM reported. Sales of traditional gasoline and diesel vehicles plummeted nearly 42% from the year before as electric vehicle market share expanded.
Financial analysts at UBS project China’s annual passenger car exports will increase roughly 40% in 2026 compared to the previous year, with electric vehicle exports potentially rising about 80%.
“The high oil price certainly has translated into further higher interest on the EV,” said Paul Gong, head of UBS’s China automotive industry research.
According to Gong, China’s vehicle exports performed better than anticipated during the early months of this year, while domestic car sales fell short of expectations.
Claire Yuan, an automotive analyst at S&P Global Ratings, anticipates China’s passenger car exports will sustain strong growth momentum in 2026, predicting year-over-year increases of 30% to 50%.
The International Energy Agency reported in its latest annual global EV outlook released in May that approximately one in four new vehicles sold worldwide last year was electric, with that proportion expected to grow further this year despite a slower beginning.
The IEA projects electric vehicle sales could reach 23 million units and account for nearly 30% of all vehicle sales in 2026.
China leads global electric vehicle production, manufacturing the majority of EVs sold internationally.
BYD, China’s top electric vehicle manufacturer, sold more than 160,000 vehicles in international markets during May, representing an 80% increase from the previous year. The company targets overseas sales of 1.5 million vehicles this year, up more than 40% from last year’s 1.05 million units.
The southern China-based automaker surpassed Tesla last year to become the world’s largest electric vehicle manufacturer by sales volume.
Expanding international sales may also improve profit margins for Chinese automakers, as aggressive pricing competition within China last year reduced profitability for many manufacturers.
S&P’s Yuan suggested China’s domestic car sales might recover during the year’s second half as consumers increase purchases following automakers’ introduction of new vehicle models.
