If we draw a curve of the past 20-plus years of Chinese automotive overseas expansion, the earliest comparison was "whether there is one", later it was "how many", and by today, the real question separating the competition has become: Is a Chinese car first built domestically and then sold globally, or is it defined from the very first day of project initiation according to global users, global regulations, and global environments?

These are two completely different concepts. The former is exports, testing channel, cost, and product competitiveness; the latter is true globalization, testing whether a car manufacturer can build a cross-market operating system in R&D, design, testing, manufacturing, services, and even local operations.

At the newly opened 2026 Chengdu Auto Show, Chery once again took the theme "Chinese Cars, Global Champions", with Chery, Exeed, Zongheng, Jetour, and iCAR five major brands and 38 models collectively appearing. Compared to the massive product lineup, what is more noteworthy is that this time Chery repeatedly emphasized one keyword—"Global Car".

From Fengyun T7 and Fengyun A9 to the all-new QQ3 and Arrizo 7, the role these products bear is no longer just that of "export vehicles", but they are trying to answer a new question: After Chinese cars enter the deep waters of globalization, what kind of car deserves the three words "Global Car"? This question is important because Chinese car overseas expansion has reached a stage where standards must be redefined.

In the past few years, the scale of Chinese car exports grew rapidly, "how many countries to sell to" and "how many vehicles exported" were once the most intuitive indicators of globalization. But sales can prove market breakthroughs but not necessarily equal global capability.

A true global car, first of all, cannot just be "domestic version + overseas adaptation". The differences between different markets are far more complex than left-hand/right-hand drive conversion and language switching. European consumers are used to high-speed driving, the Middle East faces long-term high temperatures, Southeast Asia is humid and rainy, and the Nordic region has extreme cold, darkness, and icy environments; consumers in different countries have obvious differences in steering feel, physical buttons, interior materials, lighting methods, and even parking habits. That is to say, the real difficulty of a global car is not "selling the same car to more places", but how to use a product system to respond to the real needs of different markets simultaneously.

Fengyun T7 is a relatively typical example. According to the definition given by Chery, it does not modify for overseas markets after development is completed domestically, but unfolds according to global needs from the product project initiation phase. The project researched global regulations two years in advance, designed benchmarking the 2026 version E-NCAP standards, and conducted surveys around 15 typical countries and more than 5,000 global users, incorporating real needs from different regions into product definitions in advance.

Some details particularly explain the problem. For example, Thai users prefer a heavier steering feel, so the vehicle increases steering force accordingly; Indonesian road conditions have many bumps, so the steering wheel return feel is optimized; Southeast Asia, South Africa, and Australia/New Zealand regions have intense sunlight, so low-reflection materials are used in the steering wheel and center control area; Turkish and Israeli users are more used to physical operations, so physical buttons are retained for high-frequency functions; European users more often park nose-first, so the vehicle automatically displays the front camera when approaching obstacles.

Looking at these functions individually, it is hard to call them "showing off technology", and they might not even appear in a core parameter table. But it is precisely these seemingly insignificant differences that constitute the true threshold of a global car. Because the essence of globalization is not to require global users to adapt to a Chinese car, but for the product to actively understand users in different markets.

This logic also permeates the vehicle verification phase. Fengyun T7 accumulated test mileage exceeding 6 million kilometers, covering 100-plus types of environments and road conditions such as the EU, Australia/New Zealand, Middle East, South Africa, Mexico, Brazil, and others. From Southeast Asian rainy seasons and Middle Eastern high temperatures to Siberian low temperatures, Brazilian gravel roads, and Mexican cobblestone roads, the meaning of testing has gone beyond simply proving whether a vehicle "is durable", but rather trying to move the real environments a vehicle might face in the future into the R&D cycle as much as possible.

This actually also indicates that Chinese automotive globalization is crossing a new threshold. In the past, Chinese brands overseas expansion relied on "product power + cost-effectiveness"; what will increasingly determine how far a brand can go in the future is global regulations, global quality, global verification, and global user understanding capabilities. In other words, sales prove whether you have entered a market, while system capability determines whether you can stay in that market long-term.

What Fengyun A9 represents is another dimension of globalization. For a long time, Chinese cars have faced a problem in design: how to establish their own cultural expression while avoiding falling into excessive symbolization; how to conform to global aesthetics without becoming followers of mature luxury brand design languages.

The "Oriental Originality, Global Aesthetics" emphasized by Fengyun A9 is exactly trying to answer this question. Taking Oriental aesthetics as a starting point, but not simply stacking so-called traditional elements, it attempts to translate the Oriental understanding of lines, proportions, and artistic conception into a more modern and universal automotive design language. Winning the 2026 German Red Dot Product Design Award, of course, is only an external certification, but the significance behind it lies in: Chinese brands beginning to attempt moving from "adapting to global aesthetics" to establishing their own global aesthetic expression.

This step is not easy. Technical parameters can be caught up, configurations can be downgraded, but design recognition and brand awareness require longer accumulation. A truly global brand must eventually not only have product output but also possess its own aesthetic and cultural expression.

Beyond this, the all-new QQ3 provides another observation sample. QQ was once one of the most representative products in the Chinese small car market. Today, the all-new QQ3 re-emphasizes personality, fashion, and user expression, and is gradually entering markets in Southeast Asia, South Asia, South Africa, etc., cumulatively winning global 1.6 million users, bearing a role beyond just a commuting tool.

Europe has MINI and Fiat 500, Japan has its own K-Car culture, and Chinese small cars were more often given the label of "economical and practical" in the past. Today, the QQ series is outputting personalized, youthful lifestyles to the global market again, which is in a certain sense also a microcosm of Chinese automotive culture beginning to go global. Because a truly mature automotive industry ultimately outputs not only vehicles but also the lifestyle and cultural identity formed around automobiles.

Arrizo 7 has taken the matter of "Global Car" to a more mainstream price range. This new car positioned for the 100,000 yuan tier market, developed according to global standards from the very beginning of project initiation, and simultaneously provides fuel and hybrid powertrains. The important signal it releases is: global standards should not belong only to high-end models, nor should it only be the value-added nature of export products. Only when global safety, global verification, global aesthetics, and global quality gradually enter the mainstream market accessible to ordinary consumers, can "Global Car" truly have the opportunity to change from a brand label to a common product capability.

And the fact that Chery can take "Global Car" as today's core proposition is also inseparable from more than 20 years of overseas accumulation.

As of the end of July 2026, Chery Group's cumulative global users have broken through 20.16 million, of which overseas users exceed 6.99 million; in July this year, the group's single-month exports exceeded 200,000 vehicles, January to July cumulative exports broke 1.14 million vehicles, products entered more than 130 countries and regions globally.

But what is more noteworthy than export scale is the change in Chery's globalization method. Currently, Chery's overseas employees exceed 20,000 people, of which local employees account for 85%. From Spain to South Africa, Chery is promoting local production, local employment, and local supply chain construction. This means that the relationship it has with overseas markets is gradually moving from the past simple "produced in China, sold overseas" to deep integration of R&D, manufacturing, talent, supply chain, and market operations.

This is also the real problem that Chinese automotive globalization's next stage must face. Export volume is still important, but it is increasingly like a result. What truly determines a company's global competitiveness is whether it can convert global user needs into product definitions, transform regulations of different countries into R&D standards, turn complex environments into verification systems, and then incorporate local manufacturing, local talent, and local operations into the same global system.

In this sense, "Global Car" has never been a model label, but the ultimate projection of a car manufacturer's global capabilities. In the past more than 20 years, Chinese automobiles have completed the transition from "going out" to "selling out"; but today, the real competition has become how to move from "selling globally" to "built for the globe".

Chery has ranked first in Chinese brand passenger car exports for 23 consecutive years, giving it enough long-term global market experience. But what is more noteworthy than "exports first" is that it is trying to take the more than 20 years of globalization accumulation and re-settle it into a standard that can enter product definitions, R&D, and manufacturing systems.

So looking at "Chery is a Chinese car, but more importantly a global car" today, what it really wants to express might not be so simple as "Chinese cars have gone global". More importantly, Chinese cars are beginning to answer a question that long-term defined by multinational car companies in their own way: What kind of car can truly belong to the globe.

Chery was the first to break the traditional path of "domestic model modifications for export", establishing a new development model for "native global vehicles": From the very first day of product definition, it conducts forward development targeting global market user needs. Safety standards, durability verification, usage scenarios, etc., are based on the highest global requirements. No longer making "fast-moving consumer goods", but "durable goods, works of art".

This concept is being translated into solid market performance.

OMODA&JAECOO dual brands launched only three years ago, global cumulative sales broke 1 million vehicles; entered the UK market less than two years ago, cumulative sales immediately broke 100,000, with JAECOO 7, JAECOO 5, OMODA 5 three models entering the UK top 10 best-selling car list.

LEPAS L6 successfully launched in South Africa and Thailand, its domestic homologous model "native global vehicle" Fengyun T7 directly benchmarks 2026 version European 5-star safety standard, just launched in August, 24-hour orders broke 23,188 vehicles, verifying the "one platform, global blooming" R&D path.

Picture shows LEPAS L6

Energy Switch: For every 7 new energy vehicles exported from China, 1 is from Chery

While scale continues to climb, the export product structure of Chery is undergoing profound transformation, new energy vehicles have become the "powerful engine" driving growth.

January-August, Chery Group new energy exports exceeded 450,000 vehicles, year-on-year growth 136.8%, growth rate exceeding the overall market. According to China Passenger Car Association data, January-July, Chery New Energy cumulative export volume ranked second in the industry; since April, monthly new energy exports have continuously been firmly in the top two of the industry.

Picture shows global best-selling model JAECOO 7

A more convincing number: Currently, for every 5 cars exported from China, 1 is from Chery; for every 7 new energy vehicles exported, 1 is from Chery.

The explosion of new energy exports is not accidental. From LUXEED V9 refreshing the 500,000 level new energy MPV fastest delivery record, to Freelander 8 pre-sale 48-hour orders breaking 10,000, to Fengyun T7 exploding the pure electric SUV market with 24-hour 23,000 orders — Chery is using "hit new energy matrix" to cover all global niche tracks. New energy vehicles have become Chery's new business card for going global, also showing the new image of Chinese automotive technology brands in the global market.

Market Breakthrough: UK Overall Runner-up, Australia Top Three

Chery's export market layout has also achieved breakthrough from emerging markets to global high-regulation markets.

Europe as one of the most stringent automotive regulation markets globally, has become Chery's high-quality overseas export core position: January-July, Chery in Europe 24 countries cumulative sales exceeded 208,000 vehicles, year-on-year growth 201%; among them new energy sales reached 102,000 vehicles, year-on-year big increase 332.47%. In the UK, since March Chery has continuously firmly held the monthly car sales total list runner-up; in Australia, July single-month sales have already entered industry top three.

Picture shows Chery Group overseas vehicles about to board ship

High-regulation market breakthrough means Chery's product power is being verified in the world's pickiest markets, and also further promoted global weight improvement. According to China Passenger Car Association director Cui Dongshu's statistical analysis, January-July, Chery Group world sales share increased to 4.2%, ranked ninth globally. From "China Export Champion" to "Global Sales Share Top Ten", Chery has determined new coordinates in the global automotive industry pattern.

Beyond Business: Globalized "Chery Path"

Beyond business expansion, Chery simultaneously doing another thing: carving "long-termism" into every step of globalization.

August, Chery in partnership with World Conservation Union (IUCN) in Spain launched "Cherish Nature" second phase ocean ecological protection activity, focusing on Posidonia seagrass ecosystem restoration and protection — this is one of the UN-recognized global most important blue carbon ecosystems. Relying on recycled aluminum low-carbon material technology, multiple countries global biodiversity protection projects, social emergency rescue public welfare practices, etc., Chery also won 2026 Chinese Automotive Industry Sustainable Development Practice Cases "Green Development" "Smart Innovation Technology" "Harmony and Shared Benefit" three major honors.

Picture shows Chery Group working with IUCN to carry out Mediterranean Posidonia seagrass monitoring activities and seminars

At the same time "going out" "integrating in", embracing the world, contributing to the world — this is the true moat behind 7 million vehicles.

From 2001 to 2026, from 10 vehicles to 7.18 million vehicles, Chery 25 years of overseas journey is Chinese automotive speeding up globalization vivid microcosm. 7 million vehicles is milestone, even more so new starting point. Chinese automotive new overseas chapter, is writing in every global market.

At the moment the 7,000,000th “Chery-built” vehicle boarded the ship at the port, a new chapter was added to the history of Chinese automobiles "going global".

In August 2026, Chery Group's single-month exports reached 196,984 units, a year-on-year increase of 52.1%, continuing to firmly rank first in Chinese automobile exports; cumulative exports from January to August totaled 1,343,334 units, a year-on-year increase of 68.1%. Calculating down, on average, one “Chery-built” vehicle heads overseas every 16 seconds. Thus, Chery Group's global cumulative sales surpassed 20.44 million units, among which overseas cumulative sales exceeded 7.18 million units, becoming the first Chinese auto manufacturer to cumulatively break through exports of 7 million units.

From 2025 to the present, Chery has successively claimed the three "firsts" records of cumulative Chinese auto manufacturer exports reaching 5 million, 6 million, and 7 million units, completing three million-level leaps in just 14 months. Behind ranking first in Chinese brand passenger car exports for 23 consecutive years, lies Chery's systemic breakthroughs in dimensions such as product development, business structure, market layout, and overseas expansion concepts, exploring a globalization path for Chinese enterprises from "going out" to "integrating in".

Product Evolution: From "Revised Models for Export" to "Native Global Cars"

What Chery first broke was the traditional path of "domestic models revised for export", establishing a new development model of "Native Global Cars": from the first day of product definition, it conducts positive development facing global market user needs, with safety standards, durability verification, usage scenarios, etc., benchmarking the highest global requirements ———— not making "fast-moving consumer goods", but making "durables, artworks".

This concept is being converted into solid market performance.

OMODA&JAECOO dual brand launch was only three years ago, global cumulative sales exceeded 1 million units; having entered the UK market for less than two years, cumulative sales broke 100,000 units, with the three models JAECOO 7, JAECOO 5, OMODA 5 joining the top 10 best-selling models in the UK.

LEPAS L6 was successfully launched in South Africa and Thailand, its domestic homologous model "Native Global Car" Fengyun T7 directly benchmarks the 2026 European 5-Star Safety Standards, launched in August, 24-hour orders broke 23,188 units, validating the R&D path of "One Platform, Global Success".

Image shows LEPAS L6

Power Switch: For Every 7 New Energy Vehicles Exported from China, 1 Comes from Chery

While scale continues to climb, the product structure of Chery's exports is undergoing profound changes, New Energy Vehicles have become the "powerful engine" driving growth.

January to August, Chery Group New Energy Vehicle exports exceeded 450,000 units, year-on-year growth 136.8%, growth rate exceeded the overall market. According to China Passenger Car Association data, January to July, Chery New Energy Vehicle cumulative export volume ranked in the top two in the industry; since April, monthly New Energy Vehicle exports have continuously maintained the top two in the industry.

Image shows Global Best-Selling Model JAECOO 7

A more convincing number: Currently, for every 5 cars exported from China, 1 comes from Chery; for every 7 New Energy Vehicles exported, 1 comes from Chery.

The explosion of New Energy Vehicle exports is not accidental. From Luxeed V9 breaking the 500,000-level New Energy Vehicle MPV fastest delivery record, to Freelander 8 pre-sale 48-hour orders breaking 10,000, to Fengyun T7 exploding the pure electric SUV market with 23,000 orders in 24 hours — Chery is using a "Blockbuster New Energy Vehicle Matrix" to cover all global niche tracks. New Energy Vehicles have become Chery's new card for going global, also showcasing a new technical brand image for Chinese automobiles in the global market.

Market Breakthrough: UK Overall Rank 2nd, Top 3 in Australia

Chery's export market layout has also achieved a breakthrough from emerging markets to global high-regulation markets.

Europe, as one of the markets with the strictest global automotive regulations, has become the core position for Chery's high-quality global expansion: January to July, Chery's cumulative sales in 24 European countries exceeded 208,000 units, year-on-year growth 201%; among which New Energy Vehicle sales reached 102,000 units, year-on-year increase 332.47%. In the UK, since March Chery has continuously maintained the second place in the monthly car sales total ranking; in Australia, July's single-month sales have entered the top 3 in the industry.

Image shows Chery Group export vehicles about to board ship

The breakthrough in high-regulation markets means Chery's product power is being verified in the world's most picky markets, and further promotes the increase of global weight. According to Cui Dongshu, head of the China Passenger Car Association, January to July, Chery Group's world sales share increased to 4.2%, ranking ninth globally. From "Chinese Export Champion" to "Top 10 Global Sales Share", Chery has established new coordinates in the global automotive industry landscape.

More Than Business: The "Chery Path" of Globalization

Beyond business expansion, Chery is synchronously doing another thing: engraving "long-termism" into every step of globalization.

In August, Chery in conjunction with the International Union for Conservation of Nature (IUCN) launched the second phase of "Cherish Nature" marine ecological protection activity in Spain, focusing on the restoration and protection of the Posidonia seagrass ecosystem — this is one of the globally most important blue carbon ecosystems recognized by the UN. Relying on recycled aluminum low-carbon material technology, biodiversity protection projects in multiple countries globally, socialized emergency rescue public welfare practices, etc., Chery also won the 2026 China Automotive Industry Sustainable Development Practice Cases "Green Development", "Innovative Technology", "Harmonious Benefit" three major honors.

Image shows Chery Group working with IUCN to carry out Mediterranean Posidonia seagrass monitoring activities and seminars

Integrating in while going out, embracing the world, contributing to the world — this is the true moat behind 7 million units.

From 2001 to 2026, from 10 units to 7.18 million units, Chery's 25-year journey of going global is a vivid microcosm of Chinese automobiles accelerating globalization. 7 million units is a milestone, more so a new starting point. The new chapter of Chinese automobiles going global is being written in every market globally.

These days, breaking 100,000 units in single-month domestic sales is already big news. But for Geely's overseas market alone, 110,094 units were sold in August, a year-on-year surge of 205%. If only one month looked impressive, it could be attributed to luck. But maintaining sales above 100,000 units for three consecutive months indicates only one thing: Geely's globalization has truly hit the accelerator. Even more exciting, Geely casually raised its 2026 overseas sales target from 640,000 to 920,000 units, aiming to surge past 1 million. Some feel this stride is too big, but after analyzing the overseas battle reports, my conclusion is: This isn't a bluff, it's confidence.

I. Behind Breaking 100,000 Exports, New Energy is the Ace

Checking Geely's August export bill, the most impactful part isn't the total volume, but the structure: New energy exports hit 70,629 units, surging 446% year-on-year, accounting for a high 64% of exports. This means what Geely sells best overseas isn't "cheap and generous" low-end fuel cars, but NEVs with higher technical content. Overseas market response is direct enough: From Jan-July, ZEEKR topped Australia's luxury pure electric sales chart, and sat firmly as the luxury pure electric sales champion in Malaysia; Lynk & Co 08 took the top spot in Tunisia for high-end PHEV sales; Geely Xingyuan won the championship in Thailand and Jordan, and also broke into the top three in Mexico's pure electric market. Look at data before discussing going global, this is globalization that can fight, not just raising a fuss with low prices.

II. From Selling Cars to Rooting Down, Geely Plays a Big Game

Geely's current going-global strategy is long past the days of just dragging cars to the port and calling it a day. In the European direction, it officially announced entry into Austria, sales outlets in Spain broke 50, and Xingyuan also stormed into France; In the Latin America direction, Lynk & Co landed in Argentina, Lynk & Co 01 launched in Chile, and local business was converted to Geely Auto Chile Co., Ltd. direct operation, grabbing service initiative in its own hands; In the Middle East and Africa, ZEEKR 9X started pre-sale, Lynk & Co moved into Jordan, and the first D-segment SUV global car Monjaro EM-i premiered in Egypt. Looking at it this way, it's clear: single-point trial has upgraded to a systematic layout, sales, service, channels, and racing all link together. Lynk & Co boosted brand awareness with CRC champion titles, ZEEKR opened the high-end market with luxury products, Geely main brand used the Galaxy series to seize new energy mindshare—three brands going global synergistically, the speed is naturally different.

III. Target Raised to 920,000, Where Does the Confidence Come From

Someone might ask: With such a large overseas frontline, can the funds withstand it? Geely just released its mid-2026 interim performance in mid-August, total revenue 173.6 billion yuan, core net profit attributable to parents 9.68 billion yuan, sales, price, profit all went up collectively. To put it plainly, fighting overseas needs continuous blood transfusion from domestic markets, and Geely's current cash flow is thick enough to support the global frontline. Plus exports breaking 100,000 for three consecutive months has already run through this going-global model, raising the target isn't a whim. Looking at Jan-July performance, ZEEKR 7X took the Australia medium luxury SUV sales champion, Galaxy Starship 7 EM-i took the Poland C-segment PHEV sales champion and Spain C-segment SUV first, blockbuster models fully possess the ability for global replication. 920,000 units looks like a bold slogan, actually it's just amplifying the already validated tactics further.

Many are used to understanding China car exports as "selling to developing countries", Geely's answer is: Hit developed countries with new energy, deepen emerging markets with systems, build reputation with quality and intelligence. August exports of 110,094 units is a milestone, but definitely not the end. When a Chinese auto company dares to set annual export targets to 920,000 units, then surge to 1 million, the old structure of the global auto industry has started to loosen.

September 1, Geely Automobile Holdings Limited (0175.HK) announced the latest sales data: August sales were 270,194 units, with year-on-year and month-on-month increases for six consecutive months, increasing by 8% year-on-year and 8% month-on-month. Regarding new energy vehicles, August sales (including Geely, Lynk & Co, and Zeekr) totaled 175,877 units, up 19% year-on-year, with the new energy sales share accounting for 65%.

Geely moves towards the "Systematic Globalization" stage, with overseas exports reaching a new high again. August overseas export sales reached 110,094 units, up 205% year-on-year and 3% month-on-month, achieving year-on-year and month-on-month growth for eight consecutive months. New energy product share continues to exceed half, with August new energy product export sales reaching 70,629 units, a surge of 446% year-on-year, accounting for 64%.

Behind the steady growth in sales is the achievement of Geely accelerating the transformation of technological innovation results into product competitiveness. From August 21 to August 30, Geely Automobile Group, bringing Zeekr, Lynk & Co, Geely Galaxy, and the Geely China Star brand matrix, participated in the 2026 Chengdu International Auto Show. More than 49 intelligent products made a collective appearance, covering all energy series including pure electric, hybrid, and fuel, comprehensively showcasing the technological ecosystem and future vision of the "Leader of the AI-Integrated Intelligent Automobile Domain".

Sales and Brand Value Rise Simultaneously; Three Brands Continuously Release Growth Potential

The three brands steadily climb, with main force models performing brightly, jointly promoting the continuous improvement of sales scale and brand value.

The global luxury technology brand Zeekr continues to move upward. August delivery volume reached 36,981 units, up 110% year-on-year. Multiple models lead the sub-market: Zeekr 7X August sales continued to break through 10,000, with global orders exceeding 200,000; Zeekr Shooting Brake sales exceeded 10,000 for 3 consecutive months, with global deliveries exceeding 400,000; Zeekr 9X ranked first in sales of vehicles over 500,000 from January to July; Zeekr 8X ranked first in cumulative sales of hybrid SUVs between 300,000 and 500,000 yuan after three months since listing, and first in reputation for all categories over 300,000 yuan; Zeekr 009 won the dual crown of sales and reputation for pure electric MPVs over 400,000 yuan in mainland China for 3 consecutive months.

On August 21, the Chengdu International Motor Show officially opened. The Zeekr brand brought together 14 products including Zeekr 009, Zeekr 9X, and Zeekr 8X, forming a luxurious product lineup to attract numerous viewers to visit and experience.

The global new energy premium brand Lynk & Co continues to expand. August sales reached 17,027 units, up 4% month-on-month, with new energy product sales of 15,504 units, up 10% month-on-month. Lynk & Co promotes the layout of product width, sports width, and experience width, focusing on developing the sub-market. On August 21, the all-new Lynk & Co 20 appeared at the Chengdu International Auto Show, creating a refined trendy travel new choice for urban users; the all-new Lynk & Co 20 Fly version appeared simultaneously, further strengthening sports attributes with a large carbon fiber rear wing and aerodynamic sport kit.

At the same time, newly listed models such as Lynk & Co 10 and Lynk & Co 07GT were exhibited alongside the Lynk & Co GT concept car Time to Shine, showcasing Lynk & Co's product layout covering multiple energy forms, adapting to diverse travel scenarios, and ultimate performance aesthetics.

Lynk & Co's automotive sports map expanded from track racing to rally racing, starting a new exploration of Chinese brand hybrid rally sports. From August 28 to 30, Lynk & Co took the 07GT Rally Academy Racer to the 2026 China Automotive Rally Championship (CRC) · Huairou Station. Speed Partners-NANA / Speed Partners-Jacky drove this racer to win the CRC S7 Class & Lynk & Co Automotive Rally Challenge Championship.

The Geely brand solidified the foundation of high-quality growth, with August sales of 216,186 units, up 5% year-on-year and 9% month-on-month.

Among them, the mainstream new energy brand Geely Galaxy August sales reached 119,115 units, up 8% year-on-year and 10% month-on-month. Geely Xingyuan August sales reached 60,955 units, with sales exceeding 50,000 for 3 consecutive months, cumulative sales nearing 900,000 units, delivering 1 unit per minute on average, selling more than 1,200 units per day. In addition, in August, Geely Galaxy E5 sales reached 14,132 units.

At the same time, while Geely Galaxy solidifies the mainstream market, multiple new cars reinforce competitive advantages with product power. On August 13, the all-new C-Class AI Pure Electric Sports Sedan Galaxy TT opened for pre-sale, starting from 145,900 Yuan, redefining the value benchmark for 200,000 Yuan class pure electric sports sedans. On August 21, Geely's first AI All-Terrain Hardcore SUV -- Galaxy Warship 700, appeared at the Chengdu International Auto Show. As an embodiment of Chinese-style luxury off-road in the new energy era, it became the focus of the entire show, fully demonstrating the benchmark-level strength of Chinese hardcore off-road, and will open for pre-sale in September.

In the fuel car market, Geely China Star further strengthened its leading position, with August sales of 97,071 units, up 8% month-on-month. Among them, the Twin Bin Family reached 33,515 units, the China Star premium series reached 25,802 units, and the Boyue Family reached 16,656 units.

The fuel car HEV strategy continues to land, with classic products continuously refreshed. The all-new Fourth-Generation Boyue L i-HEV Series landed at the Chengdu Auto Show. The new car is equipped with China's third-generation fuel hybrid technology i-HEV Smart Engine Hybrid, the strongest hybrid dedicated 1.5TD engine in its class, LiDAR, and Qianli Hanhai H5 ADAS solution. With "Great Energy Saving, Great Performance, Great Intelligence" three cross-level strengths, it redefines fuel SUVs, further consolidating Geely Boyue's fuel SUV sales champion status.

On August 31, the all-new flagship model under Geely Automobile -- Xingyue L PLUS was officially announced to appear. The new car adopts a 5-Seat Layout, positioned as a Mid-to-Large Flagship Smart Hybrid SUV, making comprehensive advances in hybrid systems, intelligent configurations, chassis handling, and seating comfort, further consolidating Geely China Star's voice and champion status in the fuel car market, and will debut on September 5.

Accelerate Full-Domain AI Transformation; Inject Growth Power with Technological Innovation

Geely continues to promote full-domain AI transformation, having integrated full-domain AI into the design, R&D, manufacturing, and after-sales full links, achieving "Full-Domain Intelligence", and accelerating the landing of new products and technologies.

On August 28, 2026, Geely Automobile Group officially launched AI New Energy Off-road Technology, gathering GTA Native New Energy Off-road Architecture, AWD AI Electric Hybrid Thunder EM-T, and AI All-Terrain Digital Chassis, three globally first technologies, achieving comprehensive innovation breakthroughs in body structure, power system, intelligent chassis, and full-domain safety, completing systemic reshaping from the technical foundation.

GTA Native New Energy Off-road Architecture breaks the physical space bottlenecks and comfort experience limits of traditional ladder frame structures. With high-rigidity design, it has lightweight advantages, bringing disruptive off-road driving comfort compared to traditional off-road vehicles; AWD AI Electric Hybrid Thunder EM-T combines surging power and precise control, able to calmly cope with various off-road conditions, plus Star Wisdom AI Cloud Power's AI Scenario Engine, providing precise matching of optimal fuel-electric plans, energy consumption optimization of more than 15%; relying on the "AI All-Terrain Digital Chassis" built on the world's first Quantum-level AI Electronic Architecture EEA 4.0, it can identify road conditions ahead through AI, automatically switch intelligent scenario modes, and adjust torque, suspension, and body posture.

New technologies are first mounted on Galaxy Warship 700, breaking traditional off-road technology boundaries and redefining the benchmark for global smart new energy off-road technology.

Accelerate Systematic Globalization Pace; Sprint towards Million Export Sales Target

In August, overseas export sales were 110,094 units, achieving year-on-year and month-on-month growth for eight consecutive months, with exports exceeding 100,000 for three consecutive months. New energy product overseas export sales reached 70,629 units, surging 446% year-on-year, accounting for 64% of total exports.

The three brands continue to break through the global market, topping the front of many sub-markets. Zeekr topped the Australian 1-July luxury pure electric sales list, and also firmly stayed at the Malaysia luxury pure electric brand sales champion for 1-July; Lynk & Co ranked first in Tunisia July premium PHEV brand sales; Geely brand won Panama 1-July and July single-month Chinese brand sales champion, and entered the top three of Ecuador July pure electric brands.

Core model global competitiveness is further显现。January-July, Zeekr 7X topped the Australian mid-size luxury SUV sales champion, Malaysia pure electric luxury SUV first, Zeekr 009 won Thailand and Malaysia pure electric MPV model market first, Singapore luxury pure electric MPV sales champion. Lynk & Co 08 won July Tunisia premium PHEV sales first; Lynk & Co 900 took July Egypt premium new energy market sales first. In July, Geely Xingyuan (Geely EX2) topped Thailand EV sales champion, Jordan pure electric model first, Mexico all-category pure electric sales second; Galaxy Starship 7 EM-i (Geely EX5 EM-i) topped Poland C-Class PHEV sales champion, Spain C-Class SUV first and PHEV second, Mexico PHEV SUV top.

Geely accelerates the globalization pace in multiple markets including Europe, Latin America, Southeast Asia, Middle East, and Africa, continuously improving local sales networks and product layouts.

Regarding the European market, Geely officially announced landing in the Austria market, launching the Austria channel network; Spain market development has entered a rapid growth stage, with national sales network exceeding 50; further deepening cooperation with UK's largest car salary replacement service provider Tusker, enriching Geely Xingyuan's sales channels in the UK market; Geely Xingyuan listed in France.

Regarding Latin America and Southeast Asia, Lynk & Co officially landed in Argentina, with Lynk & Co 01, Lynk & Co 08, and Lynk & Co 06 three models appearing simultaneously; Lynk & Co 01 listed in Chile, and Lynk & Co Chile operations entered a new stage, cultivated by Geely Automobile Chile Company direct operation, achieving comprehensive upgrade from product to service; Lynk & Co 02 (Z20) and Lynk & Co 03 officially landed in the Vietnam market, improving Lynk & Co's full-power product matrix in Vietnam.

Regarding Middle East and Africa markets, Chinese flagship Zeekr 9X landed in the Middle East, and pre-sale has already started; Lynk & Co officially entered the Jordan market, with Lynk & Co 900 appearing as the core model. In addition, Geely's first D-SUV global car Geely Monjaro EM-i started global listing at the end of August, launching the Egypt market, steadily laying out globally.

Out of long-term confidence in overseas growth, Geely Automobile raised the 2026 overseas sales target from 640,000 units to 920,000 units, and sprinting towards an annual sales of 1 million units.

Technical strength and global capabilities continue to advance, with Geely Automobile's operating scale and profit quality steadily improving. On August 17, Geely Automobile released 2026 Mid-Year Performance, with total income of 173.6 billion Yuan, core net profit attributable to parent company reaching 9.68 billion Yuan, achieving "Volume, Price, and Profit All Rise". Relying on the "One Geely" strategy, Geely Automobile will fully leverage the "Leader of the AI-Integrated Intelligent Automobile Domain" momentum, accelerate the full industry chain intelligent transformation, and traverse the cycle with high-quality development determination.

SAIC's overseas market is shifting gears and accelerating.

From January through July this year, SAIC's exports and overseas base sales reached 876,000 units, up 52.1% year-on-year; of which 7 months sales 142,000 units, up 72.5% year-on-year. In the preceding June, SAIC's overseas sales reached 146,000 units, up 61.2% year-on-year, creating a new single-month historical high. According to the 2.384 million units group total sales disclosed by SAIC for the same period, the overseas market contribution has already approached 37%.

Another number is more intuitive. In 2025, SAIC's full-year overseas sales were 1.071 million units, up 3.1% year-on-year; this year it only took 7 months to complete more than 80% of last year's full-year sales volume.

From consecutive years of overseas annual sales of millions of units to re-entering high-speed growth this year, SAIC's overseas expansion is showing new changes.

In 2025, SAIC released overseas strategy 3.0 — Glocal "Global + Local" strategy, proposing upgrading from product export to value chain export. More than a year later, this strategy began to land beyond sales figures: European Engineering Center activated, overseas direct sales systems increased, hybrid, pure electric products etc. were recombined according to different market needs, European local production also began to enter the substantive promotion stage.

This means SAIC's overseas expansion is crossing a new threshold: from selling more cars globally to truly operating the global market.

Europe is no longer just an export market

Europe is the most suitable market to observe this change.

From January through July this year, MG sold 218,000 units cumulatively in Europe, up 22.8% year-on-year, continuing to maintain a leading position in European sales of Chinese car brands. In 2025, MG's Europe sales exceeded 300,000 units, up nearly 30% year-on-year.

More worth attention than the total volume is that MG began to appear on the European mainstream model sales list.

Data from the UK Motor Manufacturers and Traders Association SMMT shows that in July this year, 2,703 MG HS were registered, ranking fifth among all models in the UK, only behind Ford Puma, Nissan Qashqai, Kia Sportage and Jaecoo 7; cumulatively 19,424 units in the first 7 months, ranking seventh in the UK annual model sales.

The significance of this ranking is that measuring MG's position in the UK market no longer requires setting up a separate "Chinese Brand" coordinate system. It is competing with brands like Ford, Volkswagen, Nissan, Kia that have operated the European market for decades for the same batch of family users.

Europe is also one of SAIC's overseas markets facing the greatest pressure.

Currently, among the additional anti-subsidy taxes imposed by the EU on pure electric vehicles produced in China, SAIC's applicable tax rate is 35.3%. After adding original import tariffs, Chinese-produced pure electric models face obvious cost pressure. At the same time, Chinese car companies like BYD, Chery, etc. are also rapidly expanding in Europe and successively advancing local production. Europe has become one of the most fierce markets for Chinese car companies in global competition.

SAIC's response is not to continue relying on single pure electric products.

In June this year, MG's overseas HEV model single-month sales have approached 27,000 units, doubling year-on-year; in the MG Technology Conference held in London in July, Plug-in Hybrid+ hybrid, SolidCore semi-solid-state battery and smart cockpit and assisted driving technologies were centrally displayed.

A few years ago, MG's most distinct product label in Europe was still pure electric models like MG4. Now, from HEV, PHEV to pure electric, the product portfolio is becoming more complete.

Behind this is actually a change in the overseas expansion mindset.

The initial export logic considered more how products matured in the Chinese market can go overseas; true global operation requires studying in reverse what power forms, what prices, what sizes local consumers need, then deciding what products to provide.

For automobile enterprises, what separates the two is a whole set of local product definition capabilities.

More important than how many units sold is

Rooting deeply locally

This year, a series of actions by SAIC in Europe are further crossing the boundary of "export".

Starting July 1st, MG in Belgium and Luxembourg shifted from agent operation to MG Motor Europe direct National Sales Company, directly responsible for local market operations. Previously MG had already become the largest Chinese car brand in Belgium, in 2025 local registration was about 6,000 units, market share over 1.5%.

On the same day, MG Motor Switzerland GmbH was officially established, the Swiss market also shifted from importer operation to wholly-owned, locally managed direct sales system, MG began to directly responsible for sales, after-sales and brand operation.

This is a change that can be easily masked by sales figures, but very much illustrates the degree of globalization.

For an export enterprise, the core question is how many cars sold to overseas dealers; for an enterprise truly operating the local market, it also needs to directly face terminal prices, inventory, channel efficiency, after-sales service, brand building and user relationships.

Greater changes are happening at the manufacturing end.

In June this year, the plan for SAIC to build its first EU automotive production base in Ferrol, Galicia, Spain surfaced. According to information disclosed by Reuters, the project is expected to invest about 200 million euros, planned to start construction in 2027, operate in 2028, subsequent planning annual capacity up to 120,000 units, and will support logistics and local parts procurement.

Building factories in Europe certainly has practical considerations of reducing trade barriers and logistics costs, but the significance is not limited to this.

When vehicle production truly enters Europe, enterprises need to handle local suppliers, employees, regulations, government, channels and consumer relationships simultaneously. Cars are gradually shifting from "Made in China, Sold in Europe" to "European R&D Adaptation, European Production, European Operation".

This is also the truly difficult part of "Local" in the Glocal strategy.

In the past few years, SAIC has formed an overseas R&D, manufacturing, sales and logistics network. The existing system includes overseas R&D innovation and design centers, production bases such as Thailand, Indonesia, India, as well as parts, sales service and self-operated RoRo transport system.

If these layouts built SAIC's global operation chassis, then Europe is becoming a pressure test field for verifying this system's capability.

In a market possessing local giants such as Volkswagen, BMW, Mercedes-Benz, Stellantis, while also possessing strict regulations, mature consumers and trade barriers, relying on export price advantage can win for a period of time, but it is difficult to win a long-term market.

In the end, it is a contest on who can truly integrate in.

From an MG prototype

Turn into group-level global capability

MG is still SAIC's most mature piece of overseas expansion, but SAIC's overseas growth no longer comes entirely from MG.

SAIC-GM-Wuling overseas exports have exceeded 30,000 units consecutively for 4 months, this year January-7 months cumulative breakthrough 200,000 units; SAIC Maxus July overseas sales 14,000 units, up 69% year-on-year, products entered global 100+ countries and regions. Recently, SAIC Hongyan also signed 1,000 new energy heavy truck orders with Thai customers, and carried out vehicle and charging, maintenance system local adaptation for local high temperature, rainy, heavy load environment.

From MG passenger cars, to Wuling small cars, to Maxus light commercial vehicles, pickups and new energy heavy trucks, what SAIC tries to replicate is no longer a certain "global blockbuster", but a group-level global operation system.

This road did not start this year.

In 2001, SAIC began passenger car exports; in 2012 cooperated with CP Group to layout Thailand, subsequently advanced local vehicle production; in 2019 India vehicle base put into production; by 2025, SAIC formally proposed Glocal strategy. Now, SAIC products and services have entered over 170 countries and regions globally, overseas cumulative sales exceeded 7 million units.

In more than 20 years, Chinese car exports themselves have also changed.

Earliest competition was whether there were products that could be exported; subsequently competition was who could reach 100,000, 500,000, 1 million units scale first. Entering today, when more and more Chinese car companies cross the 1 million unit export threshold, pure export quantity is becoming increasingly difficult to decide the final result of global competition.

The next stage, the contest is another set of capabilities: can we define products according to different markets in Europe, Southeast Asia, Middle East, Latin America; can we establish local R&D and manufacturing; can we directly operate channels and users; can we adapt to local regulations, supply chains and even industrial policies.

In other words, Chinese car exports are moving from "Trade Globalization" to "Operation Globalization".

From this perspective, the significance of 876,000 units has also changed.

It is first of all a sales report card, but more importantly, this round of growth appears in the stage where European local production, direct channels, technical local adaptation and global supply chain are promoted synchronously.

True global automobile enterprises were never global enterprises because of large export volumes. Toyota, Volkswagen, GM became multinational automotive groups because they can R&D, produce, organize supply chains, operate brands and serve users in different countries.

For SAIC which has continuously sold millions of units overseas for many years, the next question has also changed from "how many more units can be exported" to "in how many markets can it truly take root".

Europe is giving the first answer. What SAIC wants to prove is not only that Chinese cars can be sold globally, but also that Chinese car enterprises have the capability to become part of the global automotive industry.

That August 1st sales quick report, I read it over and over again. Geely's total July sales reached 250,161 units, nothing unexpected; what really made me pause in front of my computer was the overseas data: exports of 106,663 units, up 202% year-on-year, rising month-on-month and year-on-month for 7 consecutive months, and reaching the 100,000 unit mark for two consecutive months.

Working in this industry for so long, you develop a feel for numbers. Previously when we talked about exports, it was assumed we just pull domestic surplus inventory to the Middle East or Africa to get blood back. But of Geely's 106,000 units this month, new energy vehicles accounted for 62,604 units, a proportion as high as 59%. What does this show? It shows what Geely sends overseas is no longer "surplus stock", but the "elite forces" currently fighting the main battle domestically.

The logic behind this deserves to be broken down and discussed thoroughly.

Model Matrix: No longer single-point explosions, but carpet-style deployment

I see many peers focusing on total sales volume. Actually, break it down by model dimension, you will find Geely's approach has changed. Previously relying on one car to rule the world, now it is rising simultaneously in various sub-segments.

Taking Star Wish (EX2) as an example, it took first place in Thailand's pure electric market in June, pushing BYD Atto 3 aside. This car looks unremarkable domestically, but in Southeast Asia's congested, high-temperature, cost-performance-focused markets, it is simply a dimensional strike. Even more incredibly, this car entered the top two in Brazil and Mexico. An A0-level small car can gain volume simultaneously in Southeast Asia and Latin America with completely different usage scenarios. This is definitely not luck, but right product definition.

Look at Starship 7 EM-i (EX5 EM-i), this car took C-level PHEV first place in Poland. Europeans are shrewd, high fuel prices, inconvenient charging, PHEV is indeed the optimal solution at this stage. Geely taking the domestic Thor Electric Hybrid technology over there, just cut right into the pain points.

Lynk & Co 08 and Zeekr need not be mentioned. Lynk & Co 08 entering the top three in premium plug-in hybrids in a place like Mexico, which is the "heartland of American cars", Zeekr pressing BBA down in right-hand drive markets like Australia, Malaysia. This is no longer explainable by "cost-performance", this is substantive breakthrough in brand elevation. Previously we said Chinese cars going overseas is "encircle the cities from the countryside", now it looks like Geely wants to directly enter "the city" to open stores.

Valencia: This Move Carries More Weight Than 100,000 Units

To tell the truth, July sales volume is just the result, that big move Geely and Ford pulled off in Spain at the end of July is the key to deciding the pattern of the next three years.

Geely spent 221 million euros to buy 34% stake of Ford's Spanish Valencia factory. This money looks a lot, but in the background of building factories in Europe costing billions of euros, this is simply "rock-bottom price".

Why is this move so clever? We who work in industry all understand, the European market has always had a "glass door", that is that anti-subsidy tariff. Previously we made cars and sent them over, tariffs were so high it was shocking, price advantage instantly disappeared. Now Geely directly builds a joint venture factory in Spain, using Ford's idle capacity to make Geely cars. This trick of "borrowing a boat to go out", directly bypasses the tariff barriers.

More importantly, this factory was built in 1976, Ford has run it there for decades, supply chain, workers, union relations are all sorted out. Geely spending small money to do big things, not only gained capacity, but also gained the "ticket" to enter the EU market and "compliance credentials". Afterward, Europeans buying Geely cars, packaging might print "Made in Spain". This is not only a business victory, but survival wisdom under geopolitical games.

System Capability: From "Selling Cars" to "Outputting Systems"

Having done auto reporting for so many years, I have seen too many companies fail miserably when going overseas. Previously many car manufacturers going overseas, just find an agent, send cars over, whether they sell well depends entirely on heaven. But Geely's current gameplay is "system overseas".

What is a system? It is "One Geely" strategic coordination. Geely, Lynk & Co, Zeekr three brands, positioning clearly divided, fighting each other not at all. Geely focuses on volume, Lynk & Co on quality, Zeekr on high-end. This multi-brand synergy is even more important overseas than domestically, because overseas dealers fear OEM left-right mutual fighting.

Looking deeper, it is technical foundation sharing. CMA, SEA these architectures, plus Thor Electric Hybrid, Shield Battery, all globally universal. This is like building blocks, base is universal, above can according to different country regulations, road conditions, consumer habits change shells. This development efficiency is what those still "one car one car redesign" competitors cannot compare with.

Past decade smashed in 250 billion R&D fees, now look, time for harvest has arrived.

Written at last: Don't just look at the spectacle, look at the essence

Of course, we also must be calm. Although Geely's momentum is fierce, challenges are still ahead. Before Valencia factory first car rolls out in 2028, union negotiations, production line renovation, EU certification, every gate is not easy. Moreover, Lynk & Co and Zeekr really entering Western Europe, facing Mercedes, BMW, Tesla these "local heavyweights", hard battles are still ahead.

But for us spectators, Geely's July 106,000 units, signal meaning already very clear. Chinese cars going overseas, already passed that "selling cars out is enough" untamed era, entered "manufacture locally, sell locally, service locally" system competition stage.

Later you see Zeekr on Sydney streets, or Starship 7 in Warsaw, likely not from Ningbo Port crossing ocean transported over, but European local factory roll-out products. This is true globalization, also Geely this wave operation most makes me feel "sophisticated" place.

This game of chess, Geely has only just started placing stones.

China's auto exports in 2026 are still surging ahead. Monthly exports broke the 1 million mark for the first time, with cumulative exports in the first half exceeding 5.3 million vehicles, a year-on-year growth rate of over 50%. The position of the world's top export nation is becoming increasingly secure.

Behind the dazzling growth figures, a discussion about "when exports will peak" is quietly heating up within the industry chain.

Gu Huai (all names in this article are pseudonyms), who just returned from touring overseas markets, is an insider at a Chinese Tier 1 supplier that began its overseas layout relatively early. In his view, the node for export ceilings is likely to occur in 2029, corresponding to a peak scale of about 12 million vehicles.

This is not just one company's opinion. At a salon event held recently by the Gasgoo Auto Research Institute, several industry insiders from the automotive industry chain converged on the peak window pointing to 2028-2030. As for the peak scale, industry predictions range from 12 million to 15 million vehicles. The core of the disagreement lies in the timing of tightening trade barriers and the speed of overseas capacity implementation.

Image source: Leapmotor

Growth still surging, peak zone emerging

If we rewind time to two years ago, industry predictions on the export peak were earlier.

The logic back then was very clear: overseas factories of leading automakers would concentrate production in 2025-2026, whole vehicle exports would be quickly replaced by localized capacity, and the growth curve would flatten quickly. However, the endurance of exports far exceeded industry expectations. The "ceiling" considered at that time to be about to be touched has now been overturned by actual data that broke through continuously.

According to data from the General Administration of Customs organized by the China Association of Automobile Manufacturers, China's passenger vehicle exports in January-June 2026 reached 5.307 million vehicles, with year-on-year growth of 52.8%. The export volume for January-July counted by the China Passenger Car Association has reached 6.4 million units, with year-on-year growth of 54%. Extrapolating based on the current pace, breaking through 10 million vehicles for the whole year is almost without suspense.

In front of these scalding data figures, the industry also has more realistic judgments on the point when exports will hit the peak.

Chen Mo, an insider at a global cabin electronics Tier 1 supplier, frankly admitted, "Previously we judged that this year or next year would be the export peak, after all overseas factories have successively started localized production. But now looking at it, this time node needs to be pushed back."

In his view, the resilience of exports comes from a diversified market layout. Leading domestic automakers are expanding simultaneously in Southeast Asia, South America, and Europe. The growth rhythms of different regions are staggered, supporting the overall export scale. "In the future, it won't surge like before, but is likely to remain stable, possibly even a slight decline, with no cliff-like drop."

Similar judgments are not uncommon within the industry chain, just that different enterprises have different observation dimensions.

Jiang Yu, an insider at a domestic automotive semiconductor manufacturer, believes that exports will continue to grow in two to three years, until exports touch around 15 million vehicles, will encounter the true bottleneck. This means China's share of the global automotive market will climb to a higher level, necessarily triggering more intensive trade protection measures.

Lu Ming, head of overseas business at a leading domestic automotive interior and exterior enterprise, values the rhythm of the capacity cycle more. In his observation, Chinese automakers' overseas capacity will be gradually implemented and released in 2027, 2028. Exports won't brake immediately, rather, it will continue to walk along with the capacity ramp-up. The true balance state between exports and overseas capacity will likely appear between 2028 and 2029.

Zhou Yan, head of overseas business at a global automotive parts giant, provided more granular inflection point judgments from observing the supply chain frontlines: Looking at different metrics, pure CBU vehicle exports will likely welcome a scale inflection point in 2028, with export volume seeing a substantive decline. If KD kits are included in the full statistics, data fluctuations will be relatively flat, but the downward trend of pure vehicle exports is quite clear.

Tian Tao, an analyst at a consulting institution in the automotive industry, stated that geopolitics, tariff policies, and localized capacity superimpose three factors, and the export ceiling will likely fall around 2030.

Image source: Chery

Of course, all these industry insiders emphasize: export ceiling does not equal the overseas sales peak of Chinese automakers.

Su Wan, head of overseas business expansion for intelligent cabins at a parts enterprise, said very clearly, "The momentum of exports rushing towards 10 million vehicles this year is indeed astonishing, and in the next few years, export volume will likely enter a bottleneck period, stabilizing growth and no longer skyrocketing. But if sales from localized production are included, the overall scale will still steadily rise. Exports have an upper limit, but the globalization of Chinese automakers has no upper limit. This is not the same thing at all."

Zhao Kai, head of enterprise development at a German automotive parts supplier, also confirmed this from industrial logic. In his view, new energy vehicles becoming the export main force itself extends the growth cycle. The battery technology iteration behind electric vehicles formed a synergy with national energy storage strategies, making China's automotive industrial advantages more solid than in the fuel vehicle era, and the resilience of export growth also far exceeds initial industry expectations.

Barriers and Capacity, Two Major Reality Constraints

Although the momentum of growth is fierce, no one believes exports will always rise. Two ceilings hanging above exports are slowly pressing down. One is the trade policy barrier being built higher and higher, the other is the localized capacity replacement proactively pushed by automakers.

Europe is the market that felt the chill first.

EU anti-subsidy tariffs targeting Chinese pure electric vehicles have taken effect. Multiple domestic automakers apply to different additional tax rates. After adding basic tariffs, comprehensive tariff costs for some brands have risen significantly, valid for as long as several years. This is just the first gate, and more systematic rule reshaping is on the way.

Lin Zhou, an insider at a Spanish-backed joint venture parts enterprise, revealed that the 'Industrial Accelerator Act' the EU is pushing is currently still in the legislative draft stage. According to general extrapolations by industry institutions, the bill is expected to complete legislation in 2027. Constraint clauses related to automobiles will land successively after the bill takes effect, and the overall time window is concentrated in 2027-2028. Final progress still depends on negotiation progress between the European Parliament and Council.

The core logic of the bill is very straightforward: through localized content requirements, public procurement restrictions, investment review means, it aims to protect and support the European local automotive industry.

"2026 is a key node," Lin Zhou added. The head new energy brand's Hungary factory officially operated this year, but carbon emission qualification accounting will land in 2027. The EU will introduce third-party audit agencies to check 2026 data and calculate final carbon emission indicators. And this indicator is tightening year by year; if standards are not met, additional tariffs must be levied. Besides the EU-level unified bill, individual member states are also issuing local policies, explicitly and implicitly guiding Chinese automakers to invest and build factories locally. Essentially, all are using rules to force localization.

Fang Cheng, an insider at a domestic automotive electronics enterprise, spoke even more directly: "We are not just going to earn Europeans' money, but also reconstructing the local industrial landscape. For European players guarding century-old industrial foundations, earning money can be tolerated, but having rice bowls snatched and tracks changed by latecomers equates to slapping in public. Resistance will only get more intense. Trade protection is not a question of whether it will come; it has already come, and it will increase more."

In his view, relying on high-speed growth of whole vehicle exports is naturally unsustainable, will soon touch the policy red line, and localization is the core path to break the situation.

More fundamental than policy barriers is the localization route chosen proactively by automakers. When export scale reaches a certain level, coupled with the rise of tariff costs, building factories locally for production became the inevitable choice.

Currently, overseas factories of leading automakers have already entered the concentrated production launch period.

BYD's Hungary Szeged factory will start whole vehicle assembly in the fourth quarter of 2026. Its Thailand Rayong, Brazil Camacari two factories have already achieved mass production, and capacity is still continuously ramping up. Chery's Spain Barcelona joint venture factory, Malaysia Intelligent Auto Industrial Park, and South Africa Rosslyn factory will all be put into production successively in 2027. SAIC MG's European production base located in Port Ferrol, Spain is planned to officially start operations at the end of 2028.

Image source: BYD

In the industry's view, whole vehicle exports were originally a transitional stage of overseas layout. Once the costs and efficiency of local factories are worked out, combined with the consideration of tariff and logistics costs, the priority of whole vehicle exports will naturally gradually decline.

Lu Ming's viewpoint also confirms this logic: The process of overseas capacity landing and release is the process of exports being gradually replaced. In the initial phase of capacity ramp-up, it may still need to export some parts or whole vehicles to supplement market gaps. After capacity is fully released, the incremental space for exports will be greatly compressed.

But this replacement is not a zero-sum game. Su Wan repeatedly emphasized: Exports and localized production are not a replacement relationship of mutual exclusion; it is a baton-passing progressive relationship. Exports are responsible for quickly opening markets and building brand awareness, localization is responsible for reducing costs and digging deep into user markets, both together expanding the overseas basic board of Chinese automakers.

Exports are not the destination, Going overseas heads to deep waters

When whole vehicle export growth gradually hits the top, China Auto's globalization layout will also synchronously enter the real deep waters.

As Jiang Yu said, when whole vehicle export scale approaches 15 million vehicles level, resistance for further growth will significantly increase. This is not a decline in Chinese automakers' competitiveness, but overseas localized capacity entering a concentrated release period, gradually replacing whole vehicle exports. On the surface, export number growth slows down, but Chinese automakers' global market share is still rising, it is just that the growth carrier has shifted from "whole vehicle exports" to "local manufacturing".

This is also the consensus of all industry chain personnel: The next stage of Chinese auto going overseas is shifting from "selling products" to "outputting industry". Going out with the vehicle factories is not just cars, but also the whole supply chain system.

Gu Huai's overseas survey confirms this trend. He summarized three mainstream models of current automakers going overseas: One is pure whole vehicle exports to fight the market; Two is cooperating with local factories to produce and reduce costs; Three is building factories and ecosystems solely like leading new energy brands. In the process of the three models blending promotion, parts, glass, chips, electronics systems and other supply chain links will also gradually complete localization along with them.

"At normal pace, around 2028, Chinese automakers' overseas industrial layout will be able to reach a relatively large scale. Not just selling cars over there, but moving the whole industrial ecosystem over there," Gu Huai said.

Tier 1 suppliers have already walked ahead. Multiple global parts enterprises are adjusting global capacity layouts, fully cooperating with the overseas rhythm of Chinese mainstream OEMs. Su Wan revealed that factories of the enterprise where he is located around the world are docking with Chinese automakers' overseas projects. Following the customer's factory building rhythm, synchronously landing capacity, from cabin systems to interior modules, are all rapidly promoting localization support capabilities.

The pace of local supply chain going overseas is also accelerating. Fang Cheng revealed that as a chip manufacturer, the company is planning to go overseas with the OEM, partner with domestic parts enterprises, and jointly achieve overseas localized production. "Automaker going overseas is never fighting alone; it must be the whole industry chain going out together to truly take root."

AI Generated Image; Source: Doubao

Of course, challenges are far more than imagined. Moving factories over does not guarantee localization success.

Shen Yan, an insider at an Italian enterprise, reminded that what Chinese brands forbid most is directly moving domestic tactics overseas. European market consumers' sensitivity to vehicle long-term value retention, brand reputation and terminal service is far higher than short-term price. If only relying on price wars, rapid model iteration, without valuing core user maintenance and service system construction, even if completing local factory building, it is also very difficult to truly stand firm in mature markets.

"2028 to 2030, export growth will gradually slow down, but won't immediately hit the ceiling. The real test has never been how much export volume rushes to, but whether China's new energy brands can truly stand in European mature markets," Shen Yan emphasized. Relying on B-side low price volume mode doesn't work in Europe; taking quality route and doing terminal service well is the key to long-term survival.

Zhou Yan suggested that there is no need to fix eyes only on Europe. South America, Africa and other regions' automotive consumption is still in rising period, trade environment is also more friendly, will be a new growth point continuously upwards. Dispersing market layout is itself the best way to hedge single market policy risks.

Zheng Ze, an insider at a German capital parts enterprise, then gave judgment from a more macro perspective: China Auto's product competitiveness is already strong enough. The one truly deciding ceiling height has never been the product itself, but national strategy and industrial discourse power. Whether can break trade barriers, strive for more fair market environment, is the core variable deciding China Auto globalization upper limit.

From a longer term industrial cycle perspective, the peak of China Auto exports is essentially a switch of growth mode. In the past few years, we relied on whole vehicle export's high growth to take the position of the world's top export nation. Next, we will through localization's deep layout, gradually strive for global automotive industry's discourse power.

Under the ceiling of export numbers is a wider globalization space.

(Note: All names in this article are pseudonyms, and some personally identifiable information has been blurred)

European Tyre Association (Tyres Europe) released sales data for member replacement tyres in the second quarter of 2026 and the first half of the year, as well as tyre import data for January to May. Association Secretary General Adam McCarthy stated: "Replacement tyre demand in Europe strengthened in the second quarter of 2026, especially for truck and passenger car tyres."

Overall Recovery of the EU Market

Passenger car tyre salesincreased by 3% compared to the second quarter of 2025, with cumulative sales in the first half of the year growing by 2%.

Among them,all-season tyres led the market again, with quarterly sales increasing by 15%, and 9% growth in the first half; summer tyre sales dropped by 2%, continuously losing market share to all-season tyres; winter tyre quarterly sales decreased slightly by 1%, and cumulative sales in the first half were still 5% lower than the same period last year.

Mileage driven decreased this quarter, reflecting a significant rise in average fuel prices and weakened consumer confidence due to the ongoing conflict in the Middle East. After a sharp decline in import volume in the first quarter, imports rebounded this quarter.

Truck and passenger car tyre sales grew by 13% in the second quarter, with cumulative growth of 7% in the first half. Despite geopolitical issues and high fuel and energy costs, freight activities and business confidence remained resilient. Truck tyre imports rose significantly in both the first and second quarters.

Agricultural tyre sales declined again, with a quarterly drop of 7%. However, this decline slowed significantly compared to the first quarter.Motorcycle and scooter tyre sales increased by 1% in the quarter, with cumulative growth of 4% in the first half.

China's Share of EU PCLT Imports Dropped Significantly

On July 7, 2026, the European Commission concluded its anti-dumping investigation into imports of Chinese PCLT tyres (passenger car and light truck tyres), determining that Chinese tyres entered the EU at dump prices and caused material injury to the EU tyre industry.

The European Commission imposed final duties of 4.3% to 45.3% on the products concerned, effective July 8, 2026, for a period of five years, with no retroactive effect.

Due to concerns about tariff retroactivity, importers hoarded inventory during the first three quarters of 2025 (when China accounted for 70% of EU imports).As inventory was drawn down, Chinese tyre imports in the first quarter of 2026 fell by 57%, with share dropping to 42%.Import volumes remained flat in April-May, with a cumulative share of 51% for January to May.

Import volumes from other sources increased by approximately 40% in both quarters, but failed to fully offset the decline from China. From January to May 2026, the EU 27 countries + UK region'sPCLT tyre import volume fell 6% year-on-year. Among them:

Chinese imports dropped by 24%, with share falling to 58% (72% in the same period of 2025), returning roughly to 2019 levels.

ASEAN suppliers filled the gap: share increased from 7.4% to almost 19.9%.Thailand led the growth, with imports rising from 2 million units to nearly 6 million, and Vietnam imports growing more than doubling to over 3 million units.

Cambodia increased from a near-zero base in 2025 to 2.3 million units, becoming a significant supply source; Indonesian import volumes also grew.Many tyres from ASEAN sources are produced in factories held by Chinese enterprises. The combined share of South Korea and Japan remained stable at 14.6%.

The UK was not bound by this tariff regime, and its share of tyres imported from China remained unchanged (approximately 75% in 2026), which boosted the overall share for the "EU 27 countries + UK" region.

TBR Tyre Imports, ASEAN Leads

In TBR (truck and bus) tyre imports,South Korea, Japan, and China lost out to Thailand and Vietnam.

In the first five months of 2026, TBR tyre imports from non-European markets into the EU 27 countries and UKincreased by nearly 27%, with growth rates similar in the first quarter and April-May.

Thailand and Vietnam currently account for nearly 61% of total imports, higher than the combined 57% in the same period last year, and far above the less than 30% in 2019. Within five months,imports from Thailand grew by 33%, and imports from Vietnam grew by 38%.

AlthoughChinese import volume increased by 9%, its share dropped from 19% in 2025 and 2019 to 16%, weakening its position.

Imports from India tripled,becoming the fourth-largest source, with a share of 6%. This overtook Egypt and South Korea – both of which saw a decline in import volume and a significant shrinkage in market share.

The concentration of European truck and passenger car tyre trade supplyis increasingly shifting towards the ASEAN region, a trend that is quite evident. Since 2019, this shift has largely come at the expense of more traditional tyre sources such as South Korea and Japan.

Overall, the latest data paints an industry picture being reshaped by trade policy: moderate recovery on the demand side, while the supply side experiences a drastic structural reshuffle – China's PCLT tyre market share in Europe dropped sharply from 72% to 58%, and ASEAN suppliers achieved a share leap that would have taken a decade in just three years.

Behind this reshuffle lies the "indirect rescue strategy" completed by Chinese tyre enterprises through overseas capacity layout. This is both a test of the globalization capability of the Chinese tyre industry and a report card on supply chain resilience.

According to Gasgoo Automotive Research Institute data, in the first half of 2026, China's passenger car and new energy passenger car exports continued to maintain a growth trend, and the global market layout was further optimized. Traditional passenger car exports showed regional differentiation characteristics, with Russia and Brazil maintaining the lead, and the European market consolidating its core status; new energy passenger car exports continued the high momentum, with Brazil leading the way, while European and Asia-Pacific markets became the main growth engines. With the evolution of global market demand and the deepening of localization layout by Chinese automakers, overseas exports are moving from scale expansion to a more diversified and refined development stage.

Top 10 Destination Countries for China's Passenger Car Exports (January-June 2026)

NO.1 Russia, January-June 2026, exports of passenger cars to Russia were 432,698 vehicles, cumulative year-on-year growth of 154.2%.

NO.2 Brazil, January-June 2026, exports of passenger cars to Brazil were 394,410 vehicles, cumulative year-on-year growth of 158.6%.

NO.3 United Kingdom, January-June 2026, exports of passenger cars to the United Kingdom were 251,290 vehicles, cumulative year-on-year growth of 91.4%.

NO.4 Belgium, January-June 2026, exports of passenger cars to Belgium were 215,184 vehicles, cumulative year-on-year growth of 46.2%.

NO.5 Australia, January-June 2026, exports of passenger cars to Australia were 211,965 vehicles, cumulative year-on-year growth of 84.2%.

NO.6 Mexico, January-June 2026, exports of passenger cars to Mexico were 148,154 vehicles, cumulative year-on-year decline of 33.7%.

NO.7 Italy, January-June 2026, exports of passenger cars to Italy were 146,769 vehicles, cumulative year-on-year growth of 141.9%.

NO.8 United Arab Emirates, January-June 2026, exports of passenger cars to the United Arab Emirates were 135,713 vehicles, cumulative year-on-year decline of 36.4%.

NO.9 Spain, January-June 2026, exports of passenger cars to Spain were 115,264 vehicles, cumulative year-on-year growth of 55.0%.

NO.10 Malaysia, January-June 2026, exports of passenger cars to Malaysia were 103,745 vehicles, cumulative year-on-year growth of 38.7%.

According to Gasgoo Automotive Research Institute data, in the first half of 2026, the landscape of destination countries for China's passenger car exports adjusted further. Russia returned to the top export market with 432,698 vehicles, a year-on-year growth of 154.2%, surpassing Brazil to take the top spot, showing that the strong demand for Chinese cars in the local market is being continuously released. Brazil ranked second with 394,410 vehicles, a year-on-year growth of 158.6%. Driven by inventory buildup prior to the increase in complete vehicle import tariffs in July, it maintained high-speed growth in the first half, but with the implementation of policy adjustments, the subsequent export model may gradually transform towards KD (knock-down assembly) and local production.

From a regional distribution perspective, Europe remains the core growth pole for China's passenger car exports. The United Kingdom ranked third with 251,290 vehicles firmly, Belgium (215,184 vehicles), Italy (146,769 vehicles) and Spain (115,264 vehicles) all entered the top ten, of which Italy grew by 141.9% year-on-year, continuing the high-speed growth trend. However, the European market still faces challenges such as trade policies, anti-subsidy investigations, and intensified local competition. Future growth will rely more on brand power and local operation capabilities.

Latin American market differentiation intensified further. Brazil continued to maintain strong growth, while Mexico's export volume was 148,154 vehicles, a year-on-year decline of 33.7%, affected by tariff policy adjustments and tightening North American trade environment factors, market demand continues to be under pressure. The Middle East market also entered an adjustment phase, with United Arab Emirates exports of 135,713 vehicles, a year-on-year decline of 36.4%, high-speed growth momentum slowed down somewhat. In contrast, Asia-Pacific market maintained steady expansion, with Australia ranking fifth with 211,965 vehicles, a year-on-year growth of 84.2%, and Malaysia with 103,745 vehicles, a year-on-year growth of 38.7% first broke through 100,000 vehicles, showing Southeast Asia and Oceania markets still have considerable growth potential.

Overall, in the first half of 2026, China's passenger car exports continued to maintain high growth, but growth momentum is shifting from single market driven to multi-regional coordinated development. With changes in global trade environment and continuous promotion of local policies in various countries, Chinese automakers' overseas competition is also gradually shifting from export scale competition to comprehensive competition in brand building, channel operations and local system capabilities.

Top 10 Destination Countries for China's "New Energy" Passenger Car Exports (January-June 2026)

NO.1 Brazil, January-June 2026, exports of new energy passenger cars to Brazil were 293,032 vehicles, cumulative year-on-year growth of 158.8%.

NO.2 Belgium, January-June 2026, exports of new energy passenger cars to Belgium were 207,174 vehicles, cumulative year-on-year growth of 45.3%.

NO.3 United Kingdom, January-June 2026, exports of new energy passenger cars to the United Kingdom were 181,880 vehicles, cumulative year-on-year growth of 101.8%.

NO.4 Australia, January-June 2026, exports of new energy passenger cars to Australia were 154,305 vehicles, cumulative year-on-year growth of 199.7%.

NO.5 Germany, January-June 2026, exports of new energy passenger cars to Germany were 83,085 vehicles, cumulative year-on-year growth of 219.5%.

NO.6 Thailand, January-June 2026, exports of new energy passenger cars to Thailand were 80,914 vehicles, cumulative year-on-year growth of 84.0%.

NO.7 Italy, January-June 2026, exports of new energy passenger cars to Italy were 77,773 vehicles, cumulative year-on-year growth of 298.8%.

NO.8 South Korea, January-June 2026, exports of new energy passenger cars to South Korea were 73,940 vehicles, cumulative year-on-year growth of 161.5%.

NO.9 Spain, January-June 2026, exports of new energy passenger cars to Spain were 71,872 vehicles, cumulative year-on-year growth of 69.3%.

NO.10 United Arab Emirates, January-June 2026, exports of new energy passenger cars to the United Arab Emirates were 59,739 vehicles, cumulative year-on-year growth of 34.7%.

According to Gasgoo Automotive Research Institute data, in the first half of 2026, China's new energy passenger car exports continued to maintain high growth, and the landscape of destination countries further concentrated on European and Asia-Pacific markets. Brazil ranked first with 293,032 vehicles, a year-on-year growth of 158.8%, new energy models have become the absolute main force for Chinese car exports to the Brazilian market. Belgium and the United Kingdom ranked second and third with 207,174 vehicles and 181,880 vehicles respectively, exports to the United Kingdom exceeded 180,000 vehicles for the first time, year-on-year growth of 101.8%, while Belgium continued to play an important role as a European logistics and transshipment hub.

From a regional distribution perspective, the European market remains the core growth engine for China's new energy passenger car exports. Belgium, the United Kingdom, Germany, Italy and Spain entered the top ten, of which Germany grew by 219.5% year-on-year, Italy grew by 298.8%, and the United Kingdom also achieved double-digit growth, reflecting that Chinese new energy vehicles are continuously improving competitiveness in mainstream European markets. At the same time, European market competition will gradually shift from product introduction stage to comprehensive competition in brand, channel and local operation capabilities.

Asia-Pacific market continued rapid expansion. Australia ranked fourth with 154,305 vehicles, a year-on-year growth of 199.7%, becoming the largest new energy export market outside Europe; Thailand and South Korea exported 80,914 vehicles and 73,940 vehicles respectively, year-on-year growth of 84.0% and 161.5%, showing that Chinese new energy vehicles' penetration rate in Southeast Asian and Northeast Asian markets continues to improve. In the Middle East market, United Arab Emirates exported 59,739 vehicles, year-on-year growth of 34.7%, maintaining steady growth, but growth rate slowed somewhat compared to before.

Overall, in the first half of 2026, China's new energy passenger car exports continued to maintain high momentum, and market coverage extended from emerging economies to traditional automotive powerhouses. With continuous improvement of product competitiveness and global channels, local systems continuously improving, Chinese new energy vehicles are accelerating from scale expansion to high-quality globalization development.

Recently, South Korean automaker KG Mobility (KGM) announced a strategic investment agreement with Chery Automobile. According to the agreement, Chery will invest 75 million US dollars into KGM and carry out or expand cooperation in areas such as accelerating new vehicle development, autonomous driving, and advanced electronic and electrical architecture.

If the transaction is completed and all bonds are converted to equity, Chery is expected to hold approximately 10% of KGM's shares and is expected to become its second-largest shareholder.

Chery's partnership with a South Korean automaker this time easily brings to mind the recent cooperation between Geely and Ford. Geely acquired 34% equity in the joint venture for 221 million euros and shares Ford's factory resources located in Valencia, Spain.

On the surface, in both collaborations, Chinese enterprises did not obtain absolute controlling equity, nor did they directly control daily operation management, but this precisely embodies the strategic wisdom of China's deep cultivation in the global market.

In the past, Chinese automakers going global relied more on product exports; however, nowadays, with changing competitive environments, Chinese automobiles are moving from pure "product output" to "global operation" covering technology, supply chain, manufacturing capabilities, brand value, and industrial ecosystems. For Chinese automakers, carrying out deep cooperation with local enterprises can faster utilize existing manufacturing, channels, and industrial resources to enter overseas markets with lower cost thresholds and achieve long-term rooting.

Currently, the globalization of Chinese automakers is entering a brand new stage. According to data from the General Administration of Customs, China's auto exports reached 5.31 million units in the first half of this year, a year-on-year increase of 53%, achieving continuous growth for 5 years. At the same time, consulting firms predict that China's auto export volume in 2026 will approach 10 million units, and China is expected to become the first country in the world to break through the 10 million unit auto export scale.

However, it needs to be seen that export volume growth does not equal the formation of globalization capabilities. For Chinese automakers, going global still faces multiple challenges such as trade barriers, policy differences, local operations, and brand awareness. How to move from "selling out" to "staying in" is the proposition that must be answered in the next stage.

True globalization still requires automakers to answer three core questions: Why are locals willing to accept the enterprise staying? Why are partners willing to walk alongside the enterprise for the long term? Can the enterprise achieve sustainable profitability locally?

These three questions correspond to industrial value, cooperation value, and commercial value respectively. Only when the three form a closed loop does going global become not just a short-term sales growth, but a long-term business capable of crossing cycles and continuously creating value.

"Behind the 'Global Expansion Fever', Chinese Automakers Still Need to Find Long-term Growth Solutions"

In recent years, "going global" has become a mandatory course that Chinese automakers cannot bypass. Besides Chery, enterprises such as Geely, Changan, Leapmotor, and Xpeng are also accelerating the promotion of global layout.

On the surface, this is a natural spillover after the improvement of Chinese automobile technology, product strength, and complete industrial chain capabilities; but from a more realistic perspective, it is also a strategic choice forced by market competition.

In the past few years, China's new energy vehicle market grew rapidly, with new brands, new models, and a large amount of capacity flooding in, and market competition gradually moved from incremental competition to stock game phase. Against the backdrop of domestic market "involution to death", many automakers face the dilemma of "increasing revenue but not profit". Therefore, the overseas market has become an important direction for enterprises to digest capacity, expand scale, and improve profit space.

However, when more and more enterprises regard going global as the answer for growth, a new question also appears: Will the overseas market become the next competitive red sea?

From the demand side, the global new energy vehicle market indeed still exists a large growth space. In the first half of 2026, the cumulative sales of new energy vehicles in the European market were about 2.378 million units, a year-on-year increase of 32.7%, penetration rate reached 29.2%, an increase of about 6 percentage points compared to the same period last year, accounting for 20.3% of global new energy vehicle sales. At the same time, new energy sales in emerging markets such as India and the Philippines also grew rapidly, among which India increased by 83.8% year-on-year, and the Philippines increased by 149.6% year-on-year.

However, it needs to be seen that different countries exist huge differences in consumption habits, regulatory standards, infrastructure, channel systems, and brand awareness, etc. The overseas market is not simply copying the Chinese market's "second battlefield", nor is it as simple as moving domestic mature models overseas for sales.

In fact, the export growth in the first half of this year not only comes from the improvement of the competitiveness of Chinese automakers themselves, but is also affected by multiple factors such as changes in international energy prices and adjustment of the electrification rhythm of overseas traditional automakers. With more Chinese brands entering the overseas market, competition is also gradually upgrading, and the dividends of going global are also gradually decreasing.

If enterprises only rely on price advantages, short-term sales, and channel deployment for expansion, then Chinese automobiles overseas may also fall into the cycle of "low-price competition" and "scale involution".

"Overseas is not a 'Safe Haven', Chinese Automakers Welcome Higher Cost Battlefields"

As is well known, the selling price of many Chinese automobile brands in the overseas market is often higher than the domestic market. Taking Chery Tiggo 8 as an example, the market price in China is around 100,000 yuan, but after entering the Russian market, the starting price is converted to about 220,000 yuan RMB, and in some markets in the Middle East, the landed price of the top configuration model is even close to 400,000 yuan.

This also makes many people in the past believe: going global means "China production, overseas sales", utilizing China's mature supply chain system and cost advantages to obtain higher premiums in the overseas market. But in fact, as Chinese automakers' globalization enters the deep water zone, this simple sales model is facing more and more challenges.

Even, a higher overseas selling price does not necessarily mean higher overseas profits. And a series of factors such as tariff barriers, local production requirements, environmental policies, distribution networks, after-sales service, etc., will directly affect the enterprise's final profitability.

Especially against the background of intensified competition in the global automobile industry, the overseas market is raising entry barriers. For example, the EU "Industrial Accelerator Act" proposes to implement "conditional market access" for countries with global key industry manufacturing capacity share exceeding 40%; the EU "New Battery Act" stipulates that starting from February 2027, power batteries must provide full life cycle carbon footprint data.

At the same time, European local automakers are also strengthening defense. Volkswagen, Stellantis, Renault and other European automotive enterprises have called for the EU to take more measures to protect the local electric vehicle industry; some European enterprises and unions also have concerns about cooperating with Chinese automakers, and even some overseas media described Chinese new energy vehicles as "Trojan horses".

It can be seen that Chinese automobile going global is experiencing a change in underlying logic, the past relied on product quality-price ratio, the future competes on system capabilities. Whoever can transform complex costs in global operations into brand, technology and industrial chain advantages, can truly realize the leap from "exporting products" to "global operations".

"Going Global is Not a Zero-Sum Game, But a Competitive Cooperation Game"

Chinese automakers' going global has never been standing on the opposite side of overseas enterprises.

Previously, Chairman Yin Tongyue of Chery Automobile Co., Ltd. pointed out: "Going to a (emerging) market is not just about pushing Chinese products out, must comply with local regulations, fit local user habits, at the same time we cannot keep all for themselves." He further emphasized that Chery going global is not to "grab" others' territory. "Do not be a plunderer, but be a fertilizer provider, increase fertility; do not go to their (place) to plunder markets, plunder talent."

Because true sustainable globalization is not about selling a car to the overseas market, but forming industrial connections locally, truly rooting in the local market.

Nowadays, the overseas layout methods of Chinese automakers have become more and more diversified, covering whole vehicle exports, CKD assembly, local production, dealer cooperation, technology licensing, platform output, capital cooperation, and joint operation and other models. And different models are essentially all for improving the enterprise's adaptability to the global market.

For example, SAIC-GM-Wuling planned production bases in Indonesia through the industrial chain synergy mode, built 120,000 units of whole vehicle capacity, while leading 16 domestic three-electric enterprises to go out together, and cultivated more than 100 local suppliers, achieving transition from product entry to industrial chain integration; Great Wall Motors through acquiring and transforming Brazil Daimler factory, officially started production in August 2025, created about 2,000 direct employment positions, and drove local supply chain system development; Chery and Spain EV MOTORS established a joint venture company, took over the Nissan closed Barcelona factory, with "Chery Technology + EBRO Brand" method to re-activate local manufacturing capability

In addition, Changan Thailand Rayong Factory welcomed the 20,000th whole vehicle off the line in June 2026, the factory total investment about 2.2 billion yuan, phase one annual capacity 100,000 units, key quality control workstation automation rate reached 90%; Geely relied on Proton brand deep plowing in Malaysia market, its Tanjung Malim electric vehicle factory has started production, phase one annual capacity reached 20,000 units.

It is worth noting that new power brands are also accelerating the output of technical systems and infrastructure capabilities. For example, Nio has deployed 93 battery swap stations overseas, and participated in research and formulation of Singapore electric vehicle charging and swapping standards "Singapore Standard SS 722"; Leapmotor, through establishing a joint venture company with Stellantis, promotes internationalization with the help of global channel resources, its main model C10 has also started local assembly production at Kulim Factory, Kedah, Malaysia; Xpeng not only has strategic cooperation with Volkswagen, but also acquired 90.1% equity of Indonesian listed company EIDO, planning its first overseas production base, and adopted CKD model to promote localized manufacturing.

From the perspective of industry insiders, different going global paths do not exist absolute superiority or inferiority, the key lies in whether it matches the enterprise's own capabilities and development stages. Whole vehicle export speed is fast, investment is relatively light, but easy to be affected by trade policy changes; local factory construction can enhance industrial integration, but needs continuous capital investment and scale support; channel cooperation can quickly open the market, but user relationships and brand assets may be constrained by partners; technology licensing and capital cooperation are lighter, but test whether the enterprise can transform technical advantages into long-term commercial value.

And judging whether an enterprise's going global is successful, cannot look only at export volume, how many countries and regions entered, or even cannot look only at overseas sales growth, but need to see whether it can answer several more core questions.

First, can it make money. Whether overseas business can form stable and sustainable profit-making ability, rather than relying on domestic market blood transfusion, financing support or short-term price advantages.

Secondly, can it take root. Whether it establishes local R&D, manufacturing, channel, service and supply chain systems, rather than staying at one-time product sales.

Thirdly, can it achieve win-win. Whether it can create employment, tax and industrial value for the locality, making government, partners, suppliers and consumers all become beneficiaries in the globalization process.

In addition, it also needs to see if the enterprise can resist risks. Facing tariff changes, policy adjustments, exchange rate fluctuations and geopolitical uncertainties, whether overseas business has sufficient resilience.

More importantly, whether the enterprise can build true brand value. What consumers buy, is it just a lower price Chinese automobile product, or recognize a global automobile brand that can exist for a long time and continuously provide value.

From the perspective of industry insiders, the highest standard of going global is not how much Chinese automakers took away from the overseas market, but how much value was left for the local while obtaining commercial returns. The overseas market does not reject Chinese automobiles, but no market will long-term welcome an "outsider" who only sells products, fights for share, but does not bear industrial responsibility and does not create local value.

Truly viable globalization is not a short-term surprise battle won relying on cost advantages, but finding the greatest common divisor of enterprise interests and local interests in different markets. Only from "entering overseas market" to "integrating into local industry", Chinese automobiles can truly complete the transformation from export powerhouse to important participant in the global automobile industry.

August 4, GAC Group released the July 2026 production and sales summary. Data shows, this July, GAC Group's monthly car production was 103,284 units, down 19.62% YoY; sales were 112,934 units, down 5.48% YoY; Jan-July cumulative production was 900,062 units, down 3.24% YoY; cumulative sales were 886,019 units, up 1.28% YoY.

The new energy segment remains the core driving force. In July, the group's new energy vehicle sales were 51,520 units, up 54.20% YoY; cumulative sales for the first 7 months reached 311,678 units, a YoY increase of 66.20%, with new energy penetration rate rising from about 28% last year to about 35%. Additionally, the combined proportion of fuel-saving and new energy vehicles has risen to 63.96%.

Image Source: GAC Group

Domestic Brand Growth Leads, Joint Venture Camp Shows Divergence

Domestic brands have become the main growth pole of GAC Group. Jan-July, GAC's domestic brand cumulative sales exceeded 400,000 units, up 33.31% YoY; July single-month sales exceeded 54,200 units, up 19.91% YoY.

GAC AION July sales were 28,807 units, up 36.37% YoY; Jan-July cumulative sales 210,386 units, up 62.08% YoY. AION Y series monthly sales maintained over 10,000 level; AION V series listed for two months cumulative deliveries broke 12,000 units, occupying 73.3% share in the 100,000-150,000 RMB class LIDAR smart driving pure electric SUV market. In July, AION officially released the new Ray series models, Hyper S600 also started deliveries simultaneously.

GAC Trumpchi July sales were 22,739 units, down 5.57% YoY, but Jan-July cumulative sales still reached 187,112 units, up 9.83% YoY. This month Trumpchi Wish S7 PHEV launched for sale, fifth-generation GS4 entered the market with starting price of 79,800 RMB.

The high-end smart electric brand Qijing Automotive co-created by GAC and Huawei Kunlun, first model GT7 listed at end of June, July started user delivery, first month sales 2,658 units. Nationwide over 90 cities have established nearly 300 stores, second model GX7 planned release within the year, product matrix gradually taking shape.

Regarding the joint venture sector, GAC Toyota July sales were 46,500 units, down 19.84% YoY; Jan-July cumulative sales 402,500 units, basically flat YoY. Camry, Highlander, Sienna three flagship models July combined sales 22,843 units, accounting for 49% of Toyota brand sales that month. Toyota bZ series new energy vehicles July sales 12,002 units, proportion over 25%, among which Toyota bZ 3X monthly sales 9,546 units, ranking at the forefront of joint venture NEV sales for consecutive months.

GAC Honda July sales were 11,686 units, down 27.11% YoY; Jan-July cumulative sales 80,004 units, down 53.13% YoY. In terms of residual value, Accord ranked first among joint venture mid-size sedans with 55.90% three-year residual value, Breeze ranked second among joint venture compact SUVs with 58.19% three-year residual value.

Worth mentioning, in July, GAC Honda cumulative sales broke 11 million units, both shareholders signed extension agreement extending cooperation period to 2038, and plan to launch 5 new cars in the next two years, including two localized new energy vehicles and iterative hybrid products.

Exports Up 130% YoY, Investment and Charging Ecology Advance Simultaneously

Export business continues high growth trend. July, GAC domestic brand export volume 23,575 units, up 119% YoY; Jan-July cumulative exports 145,000 units, YoY increase reached 130%, already exceeding total export volume of 2025 full year.

GAC GS8 rolled off production line at Kazakhstan production base; Image Source: GAC Group

Looking by region, July Americas market terminal sales up 139% YoY, Uruguay, Costa Rica, Colombia, Brazil markets sales all achieved multiple-fold growth, GAC simultaneously approved to join Brazil "Green Mobility and Innovation Plan". CIS region terminal sales up 112% YoY, global 7th KD factory put into production in Kazakhstan, GS8 model rolled off line. Asia-Pacific market terminal sales up 78% YoY, Thailand Rayong factory cumulative roll-off total vehicles over 10,000; Philippines multiple new cars completed introduction. Middle East and Africa region terminal sales up 51% YoY, July officially entered Morocco market, first batch launched three SUVs, covering fuel, hybrid, plug-in hybrid. Europe side, in Greece pure electric passenger car market, GAC market share increased to 7.7%, ranked second, multiple countries models in launch preparation phase.

As of now, GAC international business has covered 110 countries and regions globally, built 6 overseas production factories, 9 overseas parts warehouses and over 746 sales service outlets, planned to expand to 1000 outlets within the year.

At the industrial chain investment level, GAC Group continues layout around chips, autonomous driving, embodied intelligence, aerospace and other fields. July 27, GAC invested in 2021 domestic DRAM storage chip company CXMT listed on STAR Market, created A-share annual and STAR Market largest fundraising record. Same month, early invested SiC power device manufacturer Basic Semiconductor, autonomous driving company Momenta both listed on HKEX, navigation positioning chip manufacturer Herun Electronics ChiNext IPO accepted.

As of now, GAC has invested in including Horizon Robotics, Yixin Semiconductor, Pony.ai, WeRide, Qingtao Energy etc. over 140 enterprises, accumulated cultivating at least 48 invested enterprises successfully listed.

Charging infrastructure construction accelerating simultaneously. GAC "9 Vertical 10 Horizontal" charging network has covered 31 provinces 213 cities nationwide, achieved core urban area "straight 1 km must have station" density; self-operated charging piles over 27,000, among which supercharging piles broke 20,000. In addition, multiple charging pile products first obtained 3C certification, covering public fast charging, heavy truck charging, destination slow charging etc. scenarios.

According to plan, second half of this year GAC will launch Trumpchi first hard-core off-road SUV, AION new pure electric coupé, Qijing GX7 etc. multiple new models. Facing industry stock competition intensified and new energy penetration rate continuous climbing trend, GAC Group is simultaneously advancing "Stabilize Joint Venture, Strengthen Domestic Brand, Expand Ecology" three major tasks, with overseas expansion and industrial chain deep layout solidify mid-to-long term competitiveness foundation.

Domestic car market competition intensifies, automaker profit margins remain under pressure, expanding into overseas markets has shifted from an optional layout to the only path for survival and development. Latest industry data shows, in the first half of 2026, China's car exports saw explosive growth, both export volume and total export value hit new highs, but overseas trade barriers continue to increase, localized production has become the core solution for automakers to break through.

Export data continues to climb, overseas markets drive growth

According to relevant statistics from the China Association of Automobile Manufacturers, in June 2026, domestic car exports reached 1.04 million units, up 75% year-on-year, achieving single-month exports exceeding 1 million for the first time. Car cumulative exports for the first half reached 5.1 million units, up 65% year-on-year, half-year export volume broke through 5 million units for the first time; total value of vehicle exports exceeded 600 billion yuan. Now car exports account for 35% of total domestic sales. Compared to the thin domestic profits, overseas markets offer higher gross profit margins, many automakers rely on overseas profits to support domestic business to counteract profit pressures caused by intense domestic price competition.

Leading automakers race overseas, layout strategies diverge

In the first half of the year, the overseas sales tiers of major automakers were clear. Chery led with exports of 939,000 units, overseas sales accounted for 74% of total sales; BYD followed with 792,000 units, localized production in overseas factories can effectively increase profit per vehicle; SAIC and Geely ranked third and fourth respectively. Among them, Geely's new energy vehicle exports grew rapidly, new energy vehicles accounted for 60% of its total exports. Changan and Great Wall also maintained stable overseas output. Major automakers continue to ramp up overseas capacity construction, consolidating market share by building factories overseas to cope with the continuously changing overseas policy environment.

Overseas barriers continue to increase, scope of trade restrictions expands

Behind the outstanding export performance, external challenges follow in succession. The EU imposes anti-subsidy duties on Chinese electric vehicles, and plans to extend restrictions to plug-in hybrid models, while introducing relevant bills to raise investment thresholds for foreign capital. Brazil raised tariffs on imported electric vehicles, Thailand implements production capacity commitment policies, multiple rules significantly increase the cost of direct vehicle exports. The model relying solely on vehicle exports carries increasingly high risks.

Accelerating local factory construction, automakers seek paths to break through

Facing trade barriers, domestic automakers chose to accelerate overseas localized production, forming two development paths. Chery adopts a reverse joint venture model, leveraging local brands to obtain production qualifications and reduce market resistance; BYD chose to fully self-construct factories, fully controlling the supply chain and production links. Many enterprises rushed to acquire European factories during the window period to avoid policy restrictions.

China's car exports have entered a high-growth cycle, but long-term challenges remain ahead. The overseas market is both an incremental blue ocean and a competitive battleground. Major automakers continue to improve their overseas industrial layout, resolving trade barriers by relying on localized production. In the future, whoever can better root themselves in overseas markets and balance policy with operations is expected to seize more seats in the global car competition.

In the first half of 2026, the overseas export rankings of domestic automakers witnessed profound changes. If excluding Russia and Iran, these two special markets with geopolitical dividends, BYD's overseas sales have already surpassed Chery. This data also reflects the completely different globalization layout strategies of the two automakers.

BYD Chairman and President Wang Chuanfu

Customs export data for the first half shows Chery's overall exports at 944,000 units, among which the Russia and Iran markets contributed a combined 283,000 units. Excluding these two markets, Chery's sales in global marketized regions totaled 661,000 units. Out of strategic considerations, BYD actively abandoned the Russia and Iran markets. On one hand, the geopolitical situation in these two areas is complex, operational stability is very poor, currency fluctuations and sanctions could bring operational risks at any time; more critically, to concentrate all resources on deepening the European mainstream market, avoiding chain reactions in Western public opinion caused by the layout in Russia and Iran which could affect the European layout, BYD chose to strategically exit these two regions. All of BYD's 789,400 unit exports came from fully marketized regions such as Europe, Southeast Asia, Australia, Latin America, etc., and the total amount is already significantly leading Chery after excluding the dividend markets.

For many years, Chery relied on the market dividends of the Russian-speaking region and Iran, long staying at the first place in Chinese car exports. After Western European and American automakers actively withdrew, a huge vacuum appeared in the local fuel vehicle market, and Chery took stable sales through this. However, such markets are greatly affected by geopolitical situations, stability is insufficient, and do not have reference value for the global market. BYD actively gave up short-term dividends and persisted in deepening mainstream mature economies, making the growth more solid.

The European market has become BYD's most important growth engine. In the first half of 2026, BYD new registrations in Europe reached 162,400 units, compared to 70,500 units in the same period last year, with a year-on-year increase of up to 136%, achieving over doubling growth. Breaking it down, DM-i plug-in hybrid models were the largest incremental growth, surging 260% year-on-year, skillfully avoiding the pressure brought by the EU pure electric anti-subsidy measures; pure electric models climbed steadily, rising 78% year-on-year. Germany, Italy, Spain and other core Western European countries all achieved substantial growth, with no weak markets.

BYD's ability to continue rising relies on a complete system layout. Factories in Thailand and Brazil are continuously ramping up, and the Hungarian production base is about to go into production in the fourth quarter, which can avoid EU tariffs and further amplify the advantage in Europe. The independent Ro-Ro fleet is continuously expanding, thoroughly breaking free from the limitations of ocean shipping capacity, laying the foundation for continuous exports. Chery lacks overseas production bases, capacity is already close to the ceiling, superimposed with the Russia-Iran dividend markets showing top growth, subsequent growth will gradually slow down.

Based on the current growth rhythm, even if Russia and Iran sales are fully counted, BYD's total export volume at the end of this year has a high probability of surpassing Chery and taking the number one spot in annual Chinese car exports.

Short-term geopolitical dividends can support the rankings for a while, but cannot support long-term globalization. Looking only at mainstream markets with free competition, BYD has already surpassed, which also means that Chinese automakers going global have officially entered a new stage relying on product power to layout globally.

In 2021, Chinese automotive exports reached $34.5 billion. Five years later, in the first half of 2026 alone, this figure reached $91.8 billion, approaching the hundred-billion-dollar threshold.

From 34.5 billion to $91.8 billion in just half a year, the Chinese automotive industry has completed in five years what many nations accomplished over decades.

Automotive Exports Reshape China's Export DNA

Data from the General Administration of Customs shows that from January to June 2026, China's total merchandise export volume was $2.1258 trillion, a year-on-year increase of 17%. Among them, complete vehicle exports reached $91.8 billion, a significant year-on-year increase of 54%; the monthly export volume in June alone was $18.2 billion, with a year-on-year growth rate rising to 70%.

Source: Huaban Network

In terms of volume, China's automotive achievements remain eye-catching: Statistics from the China Association of Automobile Manufacturers show that the first half saw automotive exports of 5.096 million units, a year-on-year increase of 65.3%. The half-year export volume broke the 5 million unit threshold for the first time in history. June's single-month export volume was 1.037 million units, a year-on-year increase of 75.1%, breaking the 1 million unit mark for a single month for the first time.

Overall export growth was 17%, while automotive export growth was 54%—behind the nearly three-fold "scissors difference" is a profound shift in China's export engine. Cui Dongshu, Secretary-General of the China Passenger Car Association, summarized this change as: "Automotive exports have performed extremely well in recent years, rising from $34.5 billion in 2021 to $117.4 billion in 2024, forming a trend of explosive growth." The full year of 2025 reached $142.4 billion. And in just the first half of 2026, $91.8 billion has been reached, making the annual breakthrough of $150 billion inevitable.

Source: Huaban Network

What truly reshapes the export landscape is not just the automotive category. Customs data shows that the first half saw lithium battery exports of $48.7 billion, a year-on-year increase of 43%; solar cell exports of $32.9 billion, a year-on-year increase of 24%. The "New Three Items" combined exports increased by 51.6% year-on-year to $118.35 billion. Among the three, electric vehicles had the highest growth rate, with cumulative exports of $52.1 billion in the first half, an increase of 75.1% year-on-year. Relying on the first-mover advantage of new energy and intelligent innovation capabilities, Chinese automobiles have not only achieved a leap in export scale but, through deep integration with artificial intelligence, have become an important force driving global automotive R&D and design innovation.

From clothing and home appliances to automobiles, lithium batteries, and solar cells, China's export "main lineup" is being redefined. And automobiles are undoubtedly the absolute core of this new lineup.

Who Is Driving This "Rush"?

The numbers showing growth in both volume and value are only the first layer of the narrative. What is truly worth asking is: Where does this growth momentum come from?

The answer lies within the explosion of new energy vehicles.

Data from the China Association of Automobile Manufacturers shows that new energy vehicle exports reached 2.355 million units in the first half, a 1.2-fold increase year-on-year, accounting for over 46% of total automotive exports. In June alone, new energy vehicle exports were 523,000 units, a 1.6-fold increase year-on-year. Chen Shihua, Deputy Secretary-General of the China Association of Automobile Manufacturers, stated at the monthly information release that automotive exports in the first half were "better than expected and formed a stable support".

Specifically, the passenger car segment exports in June reached $14.5 billion, a year-on-year increase of 84%, representing a 658% increase compared to the same period in 2021. Among these, new energy vehicles are the "main battle horse" pulling the passenger car export rush. New energy vehicle exports in the first half reached 2.355 million units, a 1.2-fold increase year-on-year, accounting for over 46% of total automotive exports. China's new energy vehicle industry chain, from mineral processing and battery manufacturing to complete vehicle integration, has formed the world's most complete and cost-competitive closed loop. If past Chinese automotive exports relied on cost-performance ratio, now it is about technological generation gap.

Many professionals judge thus: Chinese automotive exports are ushering in a critical leap from "scale expansion" to "value export", shifting from the past focus on cost-performance ratio to the trend of technological generation gap. China's new energy vehicle three-electric systems and intelligent supply chains possess stronger product competitiveness overseas.

Source: Geely Automobile

The differentiated pattern of the export market further confirms this trend. From January to May 2026, Brazil surpassed Russia to become China's largest export market with passenger car exports of 372,000 units, a year-on-year increase of 178.7%; Russia followed with 351,000 units, a year-on-year increase of 139.8%.

The two countries combined account for more than 40% of the total top ten in Chinese passenger car exports. Markets such as the UK, Belgium, Italy, and Australia also maintained rapid growth. Analysis by Gasgoo Auto Research Institute pointed out that the European market is "blooming everywhere, and if Russia is included, Europe accounts for over half of Chinese passenger car exports".

In terms of new energy, from January to May 2026, among the top five destinations for Chinese new energy passenger car exports, Brazil ranked first with 283,000 units, followed by Belgium and the UK. New energy exports in Italy and Germany surged by 365.3% and 211.2% year-on-year respectively—Chinese new energy vehicles have successfully entered the hinterland of traditional automotive powerhouse nations.

Meanwhile, the global map of Chinese automotive exports is also undergoing reconstruction. The Latin American market shows a bipolar differentiation—Brazil saw a surge in sales driven by pre-purchases due to expectations of tariff hikes in July; while Mexico saw exports decline by 40% year-on-year due to tariff hikes early in the year and tighter North American trade policies. Markets such as the UAE in the Middle East also entered an adjustment period, down 32.6% year-on-year. This differentiation indicates to some extent that Chinese automotive exports have moved from "indiscriminate" extensive expansion into a new stage of refined operations.

Source: Chery Automobile

Changes at the enterprise level are also worth noting. Data from the China Passenger Car Association shows that among the top ten exporting car companies in the first half, Chery Automobile led with 931,500 units, a year-on-year increase of 70.9%; BYD followed with 769,300 units, a year-on-year increase of 73.6%. The two combined accounted for nearly 40% of the top ten total. Geely Automobile exported 472,500 units in the first half, a year-on-year increase of 158.3%; SAIC Passenger Car 404,200 units; Great Wall Motor 256,000 units; Tesla China 229,000 units.

More worth examining is the export ratio indicator. Chery's exports accounted for 74.3% of its total sales—meaning over 70% of this company's cars were sold overseas; BYD's overseas sales ratio exceeded 40%; Great Wall Motor's export ratio also reached 50%. The ratio of automotive exports to domestic sales in the first half rose to 37%, while the same period last year was only 19%. "Going global" has changed from an "elective course" for individual enterprises to a "compulsory course" for the entire industry, and the overseas market is moving from "icing on the cake" to "half of the business".

Undercurrents and Solutions Beneath the Splendid View

High-growth numbers are indeed exciting, but the structural contradictions hidden beneath the data that cannot be avoided are also worth noting.

Among them, the most prominent is the "ice and fire" situation between complete vehicles and components. Complete vehicle exports in the first half reached $91.8 billion, a year-on-year increase of 54%; component exports were $51.3 billion, a year-on-year increase of only 7%. The "scissors difference" is obvious.

Chen Jingjing, Secretary-General of the Automotive Branch of China Council for the Promotion of International Trade in Machinery and Electronic Products, pointed out in an interview with the media that "the gathering place of automotive component exports is basically traditional automotive manufacturing powerhouse countries, represented by the USA and the EU, where measures to restrict exports to China are being continuously implemented". This forms a stark contrast with complete vehicle exports "basically not going to the USA".

Chen Jingjing further warned that Chinese automotive exports "have left the stage of pure trade driving, and future must shift to localized and systematic deep cultivation". She specifically pointed out that domestic enterprises going global generally have the shortcoming of "emphasizing sales and neglecting after-sales". "Short-term volume boosting will only overdraw the brand. After-sales, spare parts, user repurchase, and local reputation are the core lifeline for long-term deep cultivation in overseas markets." Cui Dongshu's judgment was more direct, stating "must follow the development of independent complete vehicle enterprises".

While the high growth of complete vehicle exports is gratifying, if components lag behind for a long time, the "autonomous and controllable" nature of Chinese automotive exports will face the risk of hollowing out.

Additionally, the continuous escalation of trade barriers is another practical pressure. Starting from October 2024, the EU levied final countervailing duties on Chinese pure electric vehicles for a period of five years, adding an extra tax burden of 7.8% to 35.3% on top of a 10% basic tariff. BYD, Geely, and SAIC were separately subjected to tax rates of 17%, 18.8%, and 35.3%. In June 2026, the European Commission planned to expand the scope of countervailing duties to plug-in hybrid electric vehicles. Xinhua Finance reported that the new rules may refer to pure electric standards, and the maximum comprehensive tax rate can also exceed 45%.

Non-tariff barriers are also upgrading. The EU plans to launch the "Supply Chain Diversification Instrument" and the "Public Procurement Act" in September 2026, requiring enterprises in sensitive industries to establish diversified supply channels in key fields, setting a limit of 30% to 40% on the procurement ratio for single suppliers.

At the same time, Brazil has unified the tariff on imported electric vehicles to 35% starting from July 1st. Thailand implemented a "capacity commitment mechanism", requiring car companies to exchange export volume for localization production indicators. Tariffs and non-tariff barriers are converging and strengthening.

Facing the increasingly high walls, Chinese car companies' answer is not to "go around", but to "dig in"—from "trade export" to "industry export".

For example, a factory of a domestic new energy complete vehicle enterprise in Brazil is the most typical sample. The factory welcomed its 100,000th new energy vehicle off the line in July. It is reported that the factory's first phase plans for an annual capacity of 150,000 to 200,000 units, with a long-term goal to expand to over 500,000 units, and plans to increase the localization procurement rate to 50% by early 2027.

Source: Chery Automobile

In Europe, Chery's layout is also of landmark significance. In June 2026, Chery and the Ebro Automobile Group started a new M1 production line at a joint factory operating in the Barcelona Free Trade Zone. The production line is 696 meters long, with 97 workstations, and a single vehicle production cycle of about 75 minutes. Rafael Ruiz, President of the Ebro Automobile Group, stated that the company chose Chinese enterprises as technical partners, intending to "introduce new technologies and industrial experience in the automotive field into Spain and convert them into local industrial capabilities and employment opportunities".

From product exports to the localization of capacity, brand, and supply chains, full-chain localization is becoming an inevitable path for Chinese automotive exports from the "first half" to the "second half". This trend is summarized by the industry as "ecosystem export". Under the drive of new energy and intelligent technology advantages, the form of Chinese automotive exports is changing: complete vehicle enterprises take the lead in laying out overseas capacity, supply chain enterprises follow suit, and overseas warehouses and after-sales service networks for components are also being perfected simultaneously.

Product export is just the first step. Full localization of capacity, brand, and supply chain is the key to determining whether Chinese automobiles can truly take root overseas.

Based on the export scale of 5.096 million units in the first half, breaking 10 million units for the year is inevitable. According to international professional agencies, Chinese automotive export volume in 2026 will increase by 41% year-on-year to 10 million units, becoming the first country in the world to export 10 million vehicles, equivalent to about 2.5 times the export volume of Japanese automobiles.

Conclusion

Looking back at 2021, Chinese automotive exports were less than $35 billion, merely an unremarkable footnote in the international trade landscape. Five years later, just half a year has approached the hundred-billion-dollar level—$91.8 billion. Behind this is a systematic explosion of decades of accumulation in Chinese manufacturing, and a historical window for reshuffling the global industrial landscape.

But beneath the halo of numbers, structural concerns are also clearly visible. The "gap" between components and complete vehicles, the comprehensive convergence of trade barriers, and the real test of localization capabilities—each is a threshold that cannot be bypassed. From "trade export" to "industry export", from "scale expansion" to "value deep cultivation", this road has just been paved, but is far from flat.

$91.8 billion is not only a report card but also an entry ticket. For Chinese automobiles to truly go from "big" to "strong", the decisive chapter is yet to come.

The pace of the Chinese automotive industry going global has been faster than anyone anticipated.

On July 9, the China Association of Automobile Manufacturers revealed H1 data: In June alone, Chinese auto exports reached 1.037 million units, a 75.1% year-on-year increase, achieving single-month exports over 1 million for the first time; from January to June, cumulative exports hit 5.096 million units, a 65.3% year-on-year increase, and semi-annual exports broke through 5 million units for the first time.

The full-year export target of 7.4 million units set at the beginning of the year now appears too conservative. Based on current growth rates, achieving 10 million units in full-year exports has become a high-probability event. However, beyond the breakthrough in sales figures, the structural changes behind them are worth more attention. Domestic car sales for the first half of the year were only 9.921 million units, a 21.1% year-on-year decrease, while exports accounted for nearly 40% of passenger car production.

In this magnificent wave of going global, which companies are leading the pack? Which models are selling the best? Which markets are the main drivers for growth? Where is the next trend?

Overview of Company Exports

With the continuous surge in the scale of going global, the overseas layout of domestic automakers has differentiated into clear tiers, with the top tier forming a pattern of "one dominant leader and multiple strong contenders".

Chery Group sat firmly in the top spot with a H1 export figure of 943,800 units, up 71.5% year-on-year. Notably, Chery's exports accounted for 69.5% of its total sales, and for three consecutive months from April to June, overseas sales share exceeded 70%. June single-month overseas sales reached an all-time high of 191,000 units. For every car sold domestically, Chery sold nearly three overseas, showing that exports have become Chery's absolute primary growth pole.

Following closely, BYD delivered a H1 export performance of 789,000 units, up 71% year-on-year, with June single-month exports reaching 170,900 units alone. Especially in the new energy export niche, BYD's advantage is more obvious. In the first half of the year, new energy exports reached 769,300 units, with a market share as high as 34.5%. In other words, for every three exported new energy vehicles, nearly one was a BYD.

Geely Automobile was the most eye-catching dark horse in terms of growth rate: Exporting 474,200 units in the first half of the year, up 158% year-on-year, with a growth rate leading among top automakers; June overseas sales broke 100,000 units for the first time, reaching 102,900 units. In terms of new energy exports, Geely's increase was even more stunning, with H1 new energy exports reaching 275,400 units, surging 601.4% year-on-year.

SAIC, relying on its well-perfect multi-brand globalization matrix, also remains firmly in the first tier. Overseas wholesale sales in the first half of the year reached 735,000 units. Its MG brand has cultivated the European market for many years and has ranked first in Chinese brand sales in Europe for 11 consecutive years. Great Wall Motor has steadily progressed overseas pacing, with H1 exports of 291,400 units, up 47.4% year-on-year, and the overseas market maintained stable expansion.

From the perspective of niche sectors, the competition landscape of new energy exports reflects the strength of each company more. In the top 10 list of new energy export manufacturers in the first half of the year, BYD firmly stayed in the first place, with Chery and Geely in second and third place, corresponding new energy export volumes of 290,300 units and 275,400 units respectively. Following them were Tesla China, SAIC Passenger Car, Leapmotor, Dongfeng, SAIC-GM-Wuling, Changan, and XPeng. Among them, Leapmotor's overseas breakthrough was particularly eye-catching. H1 overseas sales neared 100,000 units, exceeding its own total overseas sales for all of 2025 in just half a year.

Another worth mentioning is that in May 2026, across 31 European markets, BYD, SAIC, Geely, Chery, and Leapmotor, these five Chinese automakers sold a total of 138,400 new cars, up 65% year-on-year. Total sales for the first time exceeded the sum of six Japanese automakers such as Toyota and Nissan. The market share of Chinese brands locally jumped from 5.6% in May of the previous year to 10.7%. This was the first time Chinese automakers hit it out head-on against Japanese rivals in Europe, the world's third-largest automotive market.

Model Breakthrough and Market Map

The success or failure of going global ultimately depends on market acceptance. Focusing eyes from automaker tiers to specific models, from the disclosed market model performance, the outline of hit models is already very clear.

BYD Song Plus is the undisputed star model in the current export camp. In the first half of 2025, it topped the export model list with 134,000 units, a year-on-year increase of 184%; entering 2026, its overseas deployment pace accelerated further, continuously stocking from Southeast Asia to Western Europe, opening the situation with balanced design, extremely low usage costs, and accessible pricing, and is very likely to become the first true "Global Car" among Chinese brands.

From the technology route perspective, emerging markets such as Latin America and Southeast Asia focus on price-performance ratio, with 100,000 yuan range compact pure electric vehicles being the most popular; mature markets such as Europe are more accepting of plug-in hybrid SUVs in the 150,000-200,000 yuan price range under the influence of policies and usage habits. The pattern of pure electric and plug-in hybrid double line breakthrough is very clear.

Meanwhile, the more critical change is in price and technology. China's automotive export is accelerating from the old model of "low-price volume sales" to a leap of "value-based globalization". Zeekr's average export price per vehicle in the first half of the year approached 350,000 yuan, and there are plans to launch high-end models with a starting price exceeding 460,000 yuan overseas; Denza, Yangwang, and other high-end brands have also achieved simultaneous volume and price increases overseas. Intelligence is becoming the "new business card" for China's automotive export—Chery was the first to pass the EU UN/ECE R171 safety management system audit, equivalent to obtaining a "technical pass" for high-level intelligent driving export.

Turning eyes to the overall market map again, according to data from Gasgoo Automotive Research Institute, from January to May 2026, Brazil topped the list of China's passenger car export markets for the first time with an export volume of 372,000 units and a 178.7% year-on-year growth rate; Russia followed closely with 351,000 units and a 139.8% growth rate. These two markets alone contributed more than 40% of the top ten total.

Among them, Brazil's explosive growth was behind a special background: starting July 1, 2026, local new energy vehicle import tariffs will rise from 25% to 35%, causing dealers to focus on抢运 in the first half of the year, pushing up shipment volumes. However, even if the short-term window closes, as the largest economy in Latin America, Brazil's long-term consumption potential remains solid.

The European market showed a situation of multiple points blooming: The UK ranked third with 189,000 units and 82% growth, Belgium, Italy, and Spain recorded export volumes of 156,000, 123,000, and 94,000 units respectively, with Italy's year-on-year increase reaching 140.7%. If Russia is included, the entire Europe has occupied half of China's passenger car exports.

However, under high growth, hidden worries are also showing: UAE export volume decreased by 32.6% year-on-year, and Mexico's drop reached 40%. The former is an adjustment period after high-speed growth, and the latter is directly impacted by the tariff hike in January this year. This also means that going global is no longer a blue ocean with everywhere growth. Tariff policy fluctuations and market cycle rotation shocks will always be normal variables the industry needs to face directly.

Where is the Next Trend?

In the market map of hot and cold differentiation, combined with H1 data trends and policy movements, there are three markets most likely to become the incremental core for the next stage of China's automotive exports.

The first worth mentioning is Brazil. Although new energy vehicle tariffs rose to 35% from July 1st and the short-term rush window is closed, this does not mean the end of market dividends. As the largest economy in Latin America, Brazil's automotive electrification has just started, and Chinese brands have laid the initial user perception with price-performance ratio and product power.

More critically, automakers like Chery have already established production capacity layout locally. Localized production can become a handle to bypass tariff barriers and deeply penetrate the market. Next, competition in the Brazil market will no longer be a simple comparison of export volumes, but a contest of localized operation depth.

The second trend belongs to Europe, which is the most contradictory yet most certain battlefield. The EU's anti-subsidy tariffs on Chinese pure electric vehicles have been in effect for nearly two years. Some automakers' comprehensive tax rates have exceeded 45%. At the moment, they are also brewing to include plug-in hybrid models into the tax scope, and the tariff wall seems to be getting higher and higher. But the actual trend is exactly the opposite: In May 2026, the market share of Chinese brands in Europe had surpassed Japanese automakers.

The more control, the more growth. The logic behind this is: The comprehensive advantages formed by Chinese new energy vehicles in 800V high-voltage platforms, integrated die-casting, self-developed batteries, and other technologies, just filled the supply gap during the global electrification transition period.

Tariffs will temporarily raise costs and compress profits, but cannot reverse product-side advantages. That is why top automakers are accelerating to respond to tariff barriers with localization: BYD's Hungary factory is expected to start whole vehicle assembly in the fourth quarter of 2026. Chery's joint venture factory in Barcelona, Spain achieved mass production by the end of 2025. The new M1 production line officially started production in June this year. "Trading localization for market" is the strategy currently consensus among automakers on the European battlefield.

And the third potential trend is Southeast Asia, traditionally regarded as the "backyard" of Japanese brands. From January to May, Malaysia ranked tenth in export destination countries with 78,599 units of export volume. This volume is not particularly outstanding, but the signal revealed behind is extremely strong: The Southeast Asian market has long been monopolized by Japanese brands. Now Chinese brands have torn a gap here.

SAIC MG has cultivated Thailand for many years and laid the foundation. Leapmotor plans to land European local production through Stellantis's Spain factory. As RCEP tariff dividends continue to be released, this region is very likely to become the next explosive growth point following Europe. Especially countries that have launched new energy vehicle incentive policies such as Thailand, Indonesia, Malaysia, etc.

Overall, the H1 export figure of 5.096 million units marks that China's automotive export has moved from testing the waters to the stage of harvest. But a clearer signal is that the competitive logic of the second half of the game has changed. Tariff barriers, geopolitical fluctuations, localized operations, every level is a hard battle.

As Chen Shihua, Secretary-General of the China Association of Automobile Manufacturers, said, export for the second half of the year should be maintained with "cautious optimism". But without a doubt, Chinese car brands have already stood at the center of the global stage. From "going out" to "going in" and then to "going up", this industry's deep reform has just opened the curtain.

In the first half of 2026, auto sales broke the 15 million mark, and exports are becoming an important growth point.

Data from the China Association of Automobile Manufacturers (CAAM) shows, the monthly auto export volume broke 1 million in June for the first time; from January to June, cumulative auto exports reached 5.096 million, a year-on-year increase of 65.3%, achieving over 5 million in semi-annual exports for the first time. Regarding the annual trend, CAAM remains cautiously optimistic, with full-year exports expected to break 10 million.

In contrast to the frantic expansion overseas, the domestic market can simply be described as bleak. NIO Li Bin called for the industry to prepare for a 15%-20% year-on-year decline in domestic auto retail volume for the full year of 2026. Data shows that the first half of the year became the most prominent feature of the car market: "strong exports, weak domestic sales." Automakers that fail to achieve a global layout in the future will find it difficult to withstand market cycle fluctuations.

1

Auto Exports Exceed Domestic Sales for Some Manufacturers

The domestic auto market is undergoing a deep adjustment. In the first half of the year, auto production and sales reached 14.993 million and 15.017 million respectively, down 4% and 4.1% year-on-year respectively. Against this backdrop, exports became the key engine driving the growth of China's auto industry, and also brought high-speed growth to auto exports after two years of adjustment.

Looking specifically. In June, auto exports were 1.037 million, increasing 11.6% month-on-month and 75.1% year-on-year, with monthly export volume breaking 1 million for the first time. From January to June, auto exports were 5.096 million, up 65.3% year-on-year. More noteworthy is the structural change—the share of export sales in total production has climbed to 39.34%. This means that for every 10 cars produced domestically, nearly 4 are heading to overseas docks.

Against this backdrop, multiple automakers saw overseas market performance hit new highs.

Among them, Chery Group ranked first with export performance of 943,800, a 71.5% year-on-year increase, with overseas sales accounting for more than 70%. This automaker that has long cultivated the overseas market, exported 191,000 units in June alone, a 79.7% year-on-year increase. A more milestone signal is that Chery's cumulative exports have officially broken the 6.78 million mark.

Not just Chery, the current growth momentum of the entire Chinese auto market comes from overseas market export performance. BYD: Overseas exports 789,400, accounting for 43% of total sales; going overseas has become an important certain link; SAIC Motor Group: exported 735,000 in the first half of the year, up 48.7% year-on-year; Since Chen Jiacai took charge of GAC International 8 months ago, GAC Group's overseas offensive speed has significantly accelerated, exporting 121,000 in the first half of the year, up 132% year-on-year, close to last year's full-year level.

Putting the export data of these automakers together, a clear trend can be seen: the overseas market is becoming the core pillar driving the overall growth of automakers. Especially against the backdrop of domestic market demand peaking, profit pressure, and fierce competition, the overseas market has officially upgraded from "incremental supplement" to "core growth pole." It can be said that the more intense the domestic market competition, the stronger the urgency for Chinese automakers to go overseas.

2

Trade Barriers Are an Inescapable Reality

The deep reasons supporting this wave of export explosion are timing, location, and people. First is timing—the global auto industry is transforming towards electrification; second is location—the Chinese auto industry chain is resilient; third is people—independent brand enterprises are working hard. Overall, China's auto going global is at the best time, and presenting a good situation of "blooming in multiple points globally."

In 2023 and 2024, Russia has always been China's number one auto export destination. But looking at the past two years, China's export volume to Russia has declined. In the first five months of this year, Brazil surpassed Russia, becoming China's number one passenger car export market. In addition, the UK, Australia, and Mexico follow closely behind.

Above the top ten overseas markets, the UK, Belgium, and Italy are all located in Europe. In the competitive landscape of the EU auto market, Chinese independent brands have gradually become stronger. In May this year, five Chinese automakers—BYD, SAIC, Geely, Chery, and Leapmotor—sold a total of 138,400 units in Europe, an increase of over 60% year-on-year, while Japanese automakers' sales were 130,000 units, down 3%. Chinese autos surpassed Japan in the European market for the first time, with a market share reaching 12.01%.

Being able to enter Europe shows that our products can already meet the needs of consumers in developed countries, further proving the increasingly solid overseas competitive strength of China's auto industry. However, the hidden realistic challenges behind the high-speed development are equally impossible to ignore. For example, the EU is building walls, Brazil is raising taxes, Thailand is tightening, and the US is blocking. Global major auto markets are all setting up barriers for Chinese cars. The overseas expansion path of Chinese automakers is still full of challenges.

But Chinese automakers' response is much faster than expected, and they are laying out overseas strategies based on their own situations. Including Chery, BYD, Geely, etc., all set up production bases, R&D centers, and service networks overseas. Meanwhile, GAC Group announced plans to deploy 242 fast-charging stations in Brazil before 2030. The overseas competition of Chinese automakers is no longer just about selling cars, but starting to compete on who can truly stay locally, moving towards true globalization management.

Monthly exports breaking 1 million, 5.096 million vehicles exported in the first half of the year—not only is this a beautiful report card, but also a real breakthrough for Made in China in the global market. This year's 10 million export goal is also within reach, but more important than numbers is whether Chinese autos can establish sustainable competitiveness in the global market. In the future, China's auto globalization will enter the deep water zone, competing no longer on short-term sales, but on long-term systemic capability and global operational wisdom.

According to Gasgoo Automotive Research Institute data, from Jan-May 2026, exports of Chinese passenger cars and new energy passenger cars continued to show high growth, but regional differentiation intensified further. Regarding passenger car exports, Brazil continued to hold the top spot, with Russia following closely, the two countries accounting for more than 40% of the total in the top ten; the European market performed steadily, achieving high growth; while the Latin America and Middle East markets entered a period of deep adjustment.

New energy passenger car exports performed even more strongly. Brazil led by a large margin, Belgium jumped to second place, highlighting its status as a European transit hub; the European market occupied five seats in the top ten. Among them, Italy and Germany achieved explosive breakthroughs with growth rates of 365.3% and 211.2% respectively, showing that Chinese new energy vehicles have successfully penetrated the heartland of traditional automotive powerhouse countries; additionally, Australia ranked fourth on the list and South Korea eighth, fully demonstrating the core competitiveness and diversified layout capabilities of Chinese new energy vehicles in both traditional automotive powerhouse countries and emerging markets.

TOP 10 Export Destination Countries for Chinese Passenger Cars (Jan-May 2026)

No. 1 Brazil, Jan-May 2026, exported 372,199 passenger cars to Brazil, cumulative year-on-year growth of 178.7%.

No. 2 Russia, Jan-May 2026, exported 350,641 passenger cars to Russia, cumulative year-on-year growth of 139.8%.

No. 3 United Kingdom, Jan-May 2026, exported 188,935 passenger cars to the UK, cumulative year-on-year growth of 82.0%.

No. 4 Australia, Jan-May 2026, exported 158,230 passenger cars to Australia, cumulative year-on-year growth of 59.2%.

No. 5 Belgium, Jan-May 2026, exported 156,364 passenger cars to Belgium, cumulative year-on-year growth of 26.6%.

No. 6 Italy, Jan-May 2026, exported 123,214 passenger cars to Italy, cumulative year-on-year growth of 140.7%.

No. 7 United Arab Emirates, Jan-May 2026, exported 119,179 passenger cars to UAE, cumulative year-on-year decline of 32.6%.

No. 8 Mexico, Jan-May 2026, exported 113,642 passenger cars to Mexico, cumulative year-on-year decline of 40.0%.

No. 9 Spain, Jan-May 2026, exported 94,452 passenger cars to Spain, cumulative year-on-year growth of 56.0%.

No. 10 Malaysia, Jan-May 2026, exported 78,599 passenger cars to Malaysia, cumulative year-on-year growth of 26.9%.

From Jan-May 2026, the landscape of Chinese passenger car export destinations continued to evolve. Brazil maintained the top spot with 372,199 units and a 178.7% year-on-year growth, further consolidating its status as the No. 1 export market. Russia ranked second with 350,641 units and a 139.8% year-on-year growth, showing strong demand for Chinese vehicles.

In terms of regional distribution, the European market showed overall growth. The United Kingdom firmly ranked third with 188,935 units and 82.0% year-on-year growth. Belgium (156,364 units), Italy (123,214 units), and Spain (94,452 units) all achieved year-on-year growth, with Italy's growth reaching as high as 140.7%, reflecting the continuous breakthroughs of Chinese brands in new energy product import and channel construction in Europe. If Russia is included in the European regional consideration, the proportion of the European market in Chinese passenger car exports exceeds half, becoming the absolute core. However, the European market still faces uncertainties in policy environment, trade barriers, and local competition; future growth leans more towards structural opportunities.

The Latin American market showed obvious polarization. Brazil ranked at the top with over 370,000 units and 178.7% year-on-year growth, benefiting from early volume increase before tariff hikes in July. In contrast, Mexican exports declined by 40.0% year-on-year, related to tariff increases effective from Jan 2026, compounded by tightening North American trade policies and adjustments in market expectations, leading to significant demand contraction. This differentiation indicates that the performance of Chinese car companies in the Latin American region is influenced by tariff, trade policy cycles, and local market environments of each country, making operating fluctuations caused by country differences very prominent.

The Middle East market entered an adjustment phase. UAE (119,179 units) declined by 32.6% year-on-year, leaving behind the previous high-speed growth. Regarding the Asia-Pacific market, Australia (158,230 units) grew by 59.2% year-on-year, ranking fourth; Malaysia (78,599 units) grew by 26.9% year-on-year, ranking tenth, showing that the potential of Southeast Asian and Oceania markets is continuously being released. Overall, Chinese passenger car exports are transitioning from relying on a few hotspot markets to a new stage where multiple regions bear pressure together and the structure is becoming increasingly diverse; growth drivers are shifting from quantity expansion to a deeper contest of product strength and brand recognition.

TOP 10 Export Destination Countries for Chinese "New Energy" Passenger Cars (Jan-May 2026)

No. 1 Brazil, Jan-May 2026, exported 283,182 new energy passenger cars to Brazil, cumulative year-on-year growth of 175.6%.

No. 2 Belgium, Jan-May 2026, exported 150,110 new energy passenger cars to Belgium, cumulative year-on-year growth of 25.8%.

No. 3 United Kingdom, Jan-May 2026, exported 129,807 new energy passenger cars to the UK, cumulative year-on-year growth of 81.4%.

No. 4 Australia, Jan-May 2026, exported 111,406 new energy passenger cars to Australia, cumulative year-on-year growth of 168.2%.

No. 5 Italy, Jan-May 2026, exported 67,043 new energy passenger cars to Italy, cumulative year-on-year growth of 365.3%.

No. 6 Germany, Jan-May 2026, exported 65,235 new energy passenger cars to Germany, cumulative year-on-year growth of 211.2%.

No. 7 Thailand, Jan-May 2026, exported 62,316 new energy passenger cars to Thailand, cumulative year-on-year growth of 62.8%.

No. 8 South Korea, Jan-May 2026, exported 60,488 new energy passenger cars to South Korea, cumulative year-on-year growth of 170.3%.

No. 9 Spain, Jan-May 2026, exported 56,953 new energy passenger cars to Spain, cumulative year-on-year growth of 74.9%.

No. 10 United Arab Emirates, Jan-May 2026, exported 53,135 new energy passenger cars to UAE, cumulative year-on-year growth of 45.7%.

From Jan-May 2026, the landscape of Chinese new energy passenger car export destinations changed significantly. Brazil maintained the top spot with 283,182 units and a 175.6% year-on-year growth, further expanding its lead, with new energy becoming the absolute main force for Chinese car exports to Brazil. Belgium leaped to second place with 150,110 units and 25.8% year-on-year growth, highlighting its strategic value as a European new energy transit hub. The United Kingdom ranked third with 129,807 units and 81.4% year-on-year growth, followed closely by Australia with 111,406 units and a 168.2% surge year-on-year, showing that electrification demand in the Oceania market is accelerating.

In terms of regional distribution, the European market showed an overall explosive trend. Including Belgium and the UK, Italy (67,043 units) grew by 365.3% year-on-year, Germany (65,235 units) grew by 211.2% year-on-year, and Spain (56,953 units) grew by 74.9% year-on-year, with growth rates far exceeding the average. Among them, the amazing increases in Italy and Germany show that Chinese new energy vehicles have successfully penetrated the heartland of traditional automotive powerhouse countries, with product strength and brand recognition achieving substantial breakthroughs. However, the European market still faces policy uncertainties such as carbon tariffs and anti-subsidy investigations; future growth relies more on deep integration into local supply chains.

The Asian market is blossoming in multiple points. Thailand (62,316 units) grew by 62.8% year-on-year. As a stronghold of Southeast Asian EV industry, Chinese brands continue to deepen their efforts through localized production layouts. South Korea (60,488 units) grew by 170.3% year-on-year, entering the top ten for the first time, reflecting significantly improved competitiveness of Chinese new energy vehicles in East Asian neighboring countries. Regarding the Middle East market, UAE (53,135 units) grew by 45.7% year-on-year, with new energy becoming a new growth point in this region.

Overall, Chinese new energy passenger car exports have entered a new stage, with market coverage extending from emerging economies to traditional automotive powerhouse countries. Growth dynamics have shifted from price advantages to a deeper contest of technical strength and brand premium. In the future, how to maintain sustainable growth under the intensification of trade barriers and requirements for local production will be a common challenge facing Chinese new energy vehicle companies.

GAC Group released a half-year performance report for 2026. The numbers are quite shocking — net loss for the first half estimated at 4.06 billion to 4.57 billion yuan. The net profit after deducting non-recurring gains and losses was even worse, with a loss of 4.8 billion to 5.6 billion yuan. More than 4 billion yuan, losing over 20 million yuan per day, it doesn't look very ideal.

But look at another set of numbers — GAC sold 773,100 vehicles in the first half, a year-on-year increase of 2.35%. New energy vehicle sales accounted for over 60%. Independent brands sold 346,000 vehicles, a surge of 35.69%. AION was even more fierce, 181,600 vehicles, a year-on-year increase of 67.08%. Overseas exports 121,500 vehicles, a year-on-year increase of 132%, the semi-annual export scale is already close to last year's full year level. Sales are up, new energy transformation is accelerating, and exports are doubling — but the books show an even bigger loss. How is this account calculated?

 GAC Group

What does the official say?

GAC's announcement was very straightforward, three reasons:

First, domestic market competition intensified, independent brands continued to increase sales investment, plus changes in product sales structure, and rising upstream raw material costs, leading to a decline in independent brand profits.

Second, joint venture brands are facing operational pressure. Specifically, terminal sales decline, continued increase in sales investment, rising raw materials, etc., are all important factors, and the company's investment income decreased year-on-year.

Reason for Loss 

Third, exchange rate fluctuations caused exchange losses, adding another blow. Obviously, GAC Group gave a relatively clear interpretation of the reasons for the loss in the first half.

To translate, it might be that independent brand profits are not as high as before, joint venture brands are under greater pressure, and exchange rates also caused a certain loss to profits.

Combining all the above factors, GAC Group is expected to incur a loss in the first half of 2026. Moreover, the loss amount is expected to reach 4.06 billion to 4.57 billion yuan, which is quite high.

However, Car Universe World believes that if you only focus on the word "loss", you might miss the real story.

Loss Forecast Announcement 

Joint Ventures: One "Under Pressure", One "Steady"

GAC Group official data shows, GAC Honda sold 68,300 vehicles in the first half, a year-on-year decline of 55.82%, almost 60% down. June single month 14,000 vehicles, although it increased more than 50% month-on-month, it fell 53% year-on-year.

The joint venture giant that used to sell 700,000 annually, now the average monthly sales of the first half is over 10,000 units. Accord, Fit, Vezel, Integra these classic models, monthly sales generally not as high as before.

Obviously, from the sales perspective, in the first half of 2026, GAC Honda still declined significantly, reaching over 50%, bearing a certain amount of pressure.

Production and Sales Express 

But the performance of GAC Toyota is different, the overall performance is still steady. Moreover, under the situation that domestic car market joint venture brands are under pressure overall, its sales volume is stable and rising.

GAC Group official data shows, in the first half of 2025 GAC Toyota sold 356,000 vehicles, monthly average sales close to 60,000 units. Year-on-year increase 3.29%. March, April, May for three consecutive months topped the sales list of joint venture car companies. July 2nd, GAC Toyota also welcomed the 10 millionth mass-produced vehicle rolling off the assembly line, joining the "million-unit level large factory".

Moreover, Car Universe World found, supporting GAC Toyota is not low-price volume-selling cars, but the Camry, Highlander, Sienna three major flagships continuing to exert effort, smart electric hybrid double engine vehicle proportion reached 54% . Boxi brand sold 52,000 units in the first half, Boxi 3X consecutive 10 months holding joint venture pure electric sales champion.

One continues to bear pressure, one steady, this joint venture card, GAC has not finished playing yet.

 Boxi 7

Independent and Overseas Markets, The Real Highlights

Car Universe World believes, if there is anything eye-catching in GAC's first-half performance report, it must be the overseas market and the surge in independent sales.

Official data shows, first half of 2026, GAC Trumpchi cumulative sales 164,000 units. Compared to the same period last year, sales increased by 12.36%.

AION rose even harder. Official data shows, first half of 2026, GAC AION cumulative sales 181,000 units. Compared to the same period last year, sales increased by 67.08%.

In terms of overseas markets, first half independent brand exports 121,500 vehicles, year-on-year growth 132%, semi-annual export scale already close to last year's full year. Americas, Asia-Pacific, Middle East, Africa, Europe five major regions simultaneously achieved high-speed growth.

 Trumpchi E8

Mexican market, AION ES and AION UT both entered the top ten in new energy BEV sales. Bolivia, GAC brand consecutive months holding China brand passenger car sales champion. Singapore, Thailand, Malaysia, Indonesia — GAC's overseas map is blossoming in multiple points.

GAC's overseas target set at the beginning of the year was 250,000 vehicles for the full year, striving for 300,000 vehicles. First half completed 121,500 vehicles, completion rate close to half. When the domestic market is too hard to compete, overseas became GAC's strongest growth curve.

 AION N60

The Account of Transformation, Cannot Look Only at the Present

The "Panyu Action" launched in 2025 is being implemented step by step.

Headquarters moved to Panyu, closer to the production frontline. Feng Xingya said an interesting sentence — "We moved the office to the place closest to the gunfire, so that those who hear the gunfire can call for it." Business Unit (BU) restructuring finished, Hyper AION BU formed first, January 2026 Trumpchi BU also established. GAC independent brands have formed a new operating architecture centered on BU.

Cooperation with Huawei also produced results. Jointly created high-end brand "Qijing" first model GT7, launched in Hangzhou on June 26th. Price 209,900 to 329,900 yuan, launched 24 hours big deposit orders broke 5200 units, Post-90s, Post-00s user proportion over 60%. Pre-sale 5 hours orders broke 10,000. 90 cities nationwide 300 stores gradually launched.

Qijing GT7 is equipped with Huawei Qiankun Intelligent Driving ADS 5. This is GAC's first car with deep cooperation with Huawei, and also a hard battle facing the market after the "Panyu Action".

These moves are all "money" in the short term — R&D needs money, channels need money, brand building needs money. But looking at a longer time dimension, these investments are storing power for the next stage. GAC positioned 2026 as the "Internal Renovation" critical stage, likely this is the meaning — first solidify the foundation, then talk about building high-rise buildings.

 AION N60 

Conclusion of This Article:

GAC's full-year target set at the beginning of the year was 2 million vehicles, first half completion rate less than 40%. Second half needs to sell nearly 1.23 million vehicles, monthly average over 200,000 vehicles. Under the current situation of joint venture pressure and intensifying new energy competition, how hard this task is, no need to say more.

But Car Universe World believes, the cards GAC holds are not finished playing yet. Joint ventures have GAC Toyota stabilizing, independent brands have AION and Trumpchi rushing, overseas releasing volume, Qijing just started.

How to play these cards, when to play them, perhaps will become an important factor for GAC Group when to walk out of the pain of transformation. These, we still let time give an answer.

Transformation is always bitter first then sweet, and never looking only at the present. What do you think? Let's chat in the comments.

Statement: This article involves relevant events, originating from brand official or authoritative media messages, for reference only, specific based on official information. If there are information, data discrepancies caused by typos, based on official information. Hope everyone looks rationally, do not believe rumors, do not spread rumors.

Article Statement:

This article is original writing of Car Universe World, reviewed by Ling Qing/Liu Shuai, Total Issue 14186, some pictures from the internet, marked source data and related materials are all citations. Car Universe World original copyright owned, infringement will be investigated.

In the first half of 2026, China's car exports reached 4.059 million units, up 63% year-on-year. At this growth rate, breaking 10 million units for the year is almost a certainty — by then China will become the world's first automotive giant to export over 10 million units annually, equivalent to 2.5 times Japan's volume.

But another set of data is not looking so good. From January to May this year, domestic passenger car retail sales reached 7.099 million units cumulatively, down 19.5% year-on-year. Among the five major independent brands, BYD sold 1.8085 million units in the first half, down 15.72% year-on-year. Growth relies mostly on exports. This isn't prosperity; it's like 'starving at home, relying entirely on grabbing from outside'.

Let's first see just how fierce the exports are. Chery exported 940,000 units in half a year, securing the top spot, with a share as high as 74.3% — 3 out of every 4 cars sold were exports. BYD followed with 790,000 units, with 174,800 units exported in June alone. What was most unexpected wasn't the volume, but the direction. In May data from 31 European countries, these five — BYD, SAIC, Geely, Chery, Leapmotor — sold a combined 138,400 units, up 65% year-on-year, surpassing the total of six Japanese brands like Toyota, Nissan, and Honda for the first time. The market share of Chinese brands in Europe jumped directly from 5.6% in May last year to 10.7%. Doubling in one year isn't growth, it's swallowing whole.

But Europeans lost patience. On July 1, the EU's final anti-subsidy duties on Chinese pure electric vehicles officially took effect — 17.4% for BYD, 18.8% for Geely, 35.3% for SAIC, plus a 10% base tariff, pushing the combined tax rate for some manufacturers above 45%. Tougher still, the EU is brewing to include plug-in hybrids in the tax scope. Over the past year, plug-in hybrids were the core channel for Chinese manufacturers to bypass pure EV tariffs; now they're trying to block all paths. But China is not someone to be trifled with. The Ministry of Commerce immediately issued a final anti-dumping ruling on EU pork, with rates ranging from 4.9% to 19.8% for five years. China is the world's largest pork consumer market; the EU's pig feet, ears, and offal rely entirely on China to digest. This blow targets the vote banks of agricultural states. Countermeasures on cognac and dairy products are also coming. Wine merchants in France's Cognac region are already shaking.

But can tariffs really stop us? The Chinese auto manufacturers' response is simple — build factories right at your doorstep. BYD is building a factory in Hungary to start production next year, Chery is laying out plans in Brazil and Spain, and SAIC is deepening roots in Thailand. If tariffs block prices, I'll just bypass your tariff wall. It's exactly the same script as Japanese automakers frantically built factories in the US after the US imposed tariffs back then. The only difference is that Chinese cars going overseas are faster, larger in volume, and the industrial chain is more complete.

Overall, the slump in the domestic car market forces all brands to go outward, and exports have made up for all the growth lost domestically. But the EU's 45% tariff is just the first hurdle; behind it, the door to the North American market is tightly shut, and the fortress of Japanese cars in Southeast Asia won't be breached in a day. The race for Chinese car exports has shifted from 'grabbing incremental growth' to 'fighting hard battles'. 10 million units is inevitable, but the tariff walls, political barriers, and localization difficulties on the road are getting harder and harder.