Exports new driver of China's auto growth

China's auto exports are growing faster than domestic retail sales, according to June sales figures released by major automakers, underscoring a trend analysts say turns overseas expansion from a strategic option into a competitive necessity.

Chery, a long-standing leader in China's auto exports, kept its top monthly export ranking in June with 191,062 units, representing a 79.7 percent year-on-year increase and marking its fourth consecutive month of record highs.

Exports made up 79.4 percent of Chery's total June sales of 240,585 units, which rose 9.5 percent year-on-year. The automaker's first-half cumulative sales reached 1,275,076 units, growing 7.8 percent from the same period of 2025.

BYD, meanwhile, is narrowing the gap with the industry's export leader. The company's June export volume hit 175,000 units, nearly doubling year-on-year and accounting for 43 percent of its total monthly sales. Its cumulative exports in the first half reached approximately 791,000 units, meeting 52.7 percent of its full-year target of 1.5 million units.

Meanwhile, BYD's total sales in June reached 403,472 units, up 5.46 percent year-on-year, retaining its top spot among Chinese automakers by sales volume, though first-half deliveries of 1.81 million units marked a decline of over 15 percent compared with the same period of 2025.

Geely reported the strongest export growth among its peers, with overseas shipments surging 157 percent year-on-year to 102,874 units in June, marking its sixth consecutive month of double-digit growth in both year-on-year and month-on-month metrics.

Exports accounted for 42.7 percent of Geely's June sales of 240,799 units, which rose 2 percent year-on-year. In the first half, Geely's exports reached approximately 474,200 units, surpassing its full-year 2025 export volume, of which 277,200 were NEVs, representing an eye-popping 585 percent year-on-year jump.

The company plans to launch its Zeekr 9X model overseas in the third quarter, starting with the Middle East, followed by Europe, Latin America and Central Asia.

Its January-to-June deliveries totaled 1,422,958 vehicles, up 1 percent year-on-year.

Cui Dongshu, secretary-general of the China Passenger Car Association, said that overseas markets have become the most reliable growth track for Chinese automakers.

Cutthroat competition at home keeps squeezing profit margins, while foreign markets still offer room for sales growth and higher pricing, Cui added.

This trend is reflected in broader industry forecasts. Consultancy AlixPartners reported last week that China's auto exports would jump to 10 million units in 2026, up from 7.1 million in 2025, while it forecasts total light-vehicle sales will drop 10 percent this year to 24.6 million units, with a gradual recovery to 26.2 million by 2030.

Chinese automakers continue to benefit from significantly faster product development cycles, enabling more rapid model refreshes and technology deployment than global peers, AlixPartners noted.

Exports represent only the first stage of international expansion, with localized manufacturing expected to become the long-term goal. Between these stages, automakers are likely to rely on technology licensing, contract manufacturing and joint ventures to establish a presence in more protected markets, according to AlixPartners' report.

Beyond the export surge, China's new energy vehicle startups continued to post robust domestic performance in June.

Leapmotor delivered 93,376 vehicles during the month, surging 95 percent year-on-year, setting a new delivery high among NEV startups and cementing its top ranking in the segment.

Thanks to its partnership with Stellantis, Leapmotor's exports reached 21,000 units in June, bringing its total overseas deliveries for the first half to nearly 100,000 units — surpassing its full-year export volume for 2025.

Nio achieved deliveries of 40,597 units in June, representing a 62.9 percent year-on-year increase and hitting its highest monthly sales volume of the year. By brand segment, deliveries of Nio rose 50.1 percent year-on-year, Onvo grew 83.5 percent, and Firefly increased 76.7 percent, showcasing robust growth across the company's lineup.

XPeng delivered 40,126 new vehicles in June, up 15.9 percent year-on-year. The brand launched pre-orders for the Mona L03 on Thursday evening. As XPeng's volume model, the SUV is scheduled for official launch in two weeks and is expected to drive the brand's overall sales growth.

Zeekr delivered 35,169 new vehicles in June, skyrocketing 111 percent year-on-year. Its cumulative deliveries from January to June reached 178,370 units, a year-on-year increase of 97 percent, nearly doubling its sales volume in the first half.

Li Auto, however, delivered 30,895 vehicles in June, down 14.84 percent year-on-year and 7.36 percent month-on-month, making it one of the few mainstream NEV startups to post declines in both metrics.

caoyingying@chinadaily.com.cn