China’s Electric Vehicle Boom: Exports Double Amidst Global Expansion

China's electric vehicle exports doubled in September as automakers expanded globally due to domestic pressures like overcapacity and price wars. This expansion targets regions such as Europe and Southeast Asia. BYD, a leading EV maker, reported significant sales growth in the UK. Meanwhile, domestic sales faced new challenges.

In a significant surge, China's electric vehicle exports doubled in September compared to the previous year, showcasing the country's robust expansion into overseas markets.

Domestic passenger car sales saw an 11.2 per cent year-on-year increase but slowed from August's 15 per cent, according to the China Association of Automobile Manufacturers. Notably, exports of 'new energy vehicles'—comprising battery electric vehicles and plug-in hybrids—rose by 100 per cent to 222,000 units in September, although slightly fewer than the units exported in August.

The shift towards international markets has been driven by challenges such as overcapacity and aggressive price wars that have been eroding profit margins. The U.S.-based consultancy Rhodium Group reported that Chinese automakers invested more abroad than domestically last year, a first since 2014. BYD, one of China's largest EV manufacturers, announced the UK as its biggest market outside China with a remarkable 880 per cent increase in sales in September. With increasing investment in the Middle East and Africa, partly due to high tariffs imposed by the EU and US, Chinese automakers are broadening their global footprint. Meanwhile, back home, price wars and reduced domestic sales pose substantial hurdles for manufacturers like BYD, amid minor drops in subsidies for new energy vehicle trade-ins.

(With inputs from agencies.)