In the first four months of 2026, against the background of slowing domestic auto market growth, auto exports have become the core engine supporting the growth of China's auto industry. Data from the General Administration of Customs and the Passenger Federation Branch show that in the first quarter of this year, China exported 2.34 million vehicles, a year-on-year increase of 53%.

Entering April, the momentum of leading car companies going abroad has further accelerated. Chery and BYD have hit record highs in exports in a single month. A new export-led automobile industry pattern is accelerating.

The latest report from global consulting firm AlixPartners shows that China's car companies and suppliers are accelerating their global layout, planning to nearly triple overseas production by 2030, and create the international market as the core profit growth engine.

However, a quantitative breakthrough is not completely equivalent to a qualitative leap. In this critical window period, how to achieve an upward breakthrough from "cost performance" to "brand power" has become the core proposition that China's automobile globalization must answer.

Chery and BYD lead the sea camp

Since 2026, China's automobile exports have shown an accelerated growth trend.

Data disclosed by the Passenger Federation Branch show that from January to March this year, China exported 2.34 million automobiles, a year-on-year growth rate of 53%, of which 1.01 million new energy vehicles were exported, continuing the strong overseas expansion momentum. Among them, the cumulative export of passenger cars was approximately 1.843 million, a year-on-year increase of 61%.

Entering the second quarter, exports of major automobile companies hit a new high in April.

Chery Group exported 177,600 vehicles in April, a year-on-year increase of 102.4%, setting a new monthly export record for China automobile brands, with exports accounting for more than 70% of total sales. BYD exported 134,500 vehicles in April, a year-on-year increase of 70.9%, also setting a record high for brand exports in a single month, with overseas sales accounting for more than 40% of total sales.

In addition, SAIC Motor's export and overseas base sales in April were 134,300 units, a year-on-year increase of 54.96%. Geely Automobile exported 83,200 units overseas in April, a year-on-year increase of approximately 120%, and has doubled year-on-year growth for four consecutive months. Changan Automobile delivered 72,700 vehicles overseas in April, a year-on-year increase of 69.9%.

From the perspective of the global new energy landscape, China's new energy passenger vehicles still account for a significant share.

According to data from the Passenger Federation Branch, in the first quarter of this year, the sales share of independent new energy passenger vehicles in overseas markets has reached 22%, a significant jump of 10 percentage points from about 12% in the first quarter of 2025. Among the major regional markets, China's new energy vehicles market share in South America has exceeded 80%, and its new energy share in Southeast Asia has reached 49%. Judging from the European market in the first quarter of this year, the development of China brands has shown a new accelerating trend.

A recent report released by Arrow said that China car companies plan to increase overseas production from 1.2 million last year to 3.4 million in 2030. China car companies plan to deploy production bases in at least 16 overseas countries. China has become the world's largest automobile exporter, but it is shifting from existing markets such as Russia and the Middle East to deploy production bases in more than a dozen other countries. Among them, Europe and Latin America have gradually become the focus of competition. In Latin America, China brands have accounted for about 20% of the automotive market and accounted for more than half of electric vehicle sales.

European markets are opening structural windows

As the birthplace of the global automobile industry, Europe has long been regarded by China automobile companies as a highland that must be overcome. The recent fluctuations in global oil prices triggered by the situation in the Middle East have made the economic advantages of electric vehicles even more prominent. The combination of multiple factors is opening an unprecedented structural window for China automobile brands in Europe.

In January this year, China and the EU reached an important consensus on the electric vehicle countervailing bill. Companies can sell pure electric vehicles at the minimum price set by the EU or above, which is expected to be exempt from additional tariffs and help car companies maintain stability in the European market. Expansion provides a policy buffer. Cui Dongshu, secretary-general of the Railway Federation Branch, predicts that from 2026 to 2028, China's electric vehicle exports to the EU will maintain an average annual growth rate of around 20%, becoming an important engine for the growth of the global electric vehicle market.

The latest data from the European Automobile Manufacturers Association (ACEA) shows that in March 2026, the European Union, the United Kingdom and European Free Trade Association member states sold a total of 1.5812 million new cars, a year-on-year increase of 11.1%. This is the European automobile market in the past six months. The monthly growth rate reached double digits for the first time, resulting in a 4.1% year-on-year increase in cumulative sales in the first quarter.

The performance of China brands has become the biggest highlight of this data. BYD sold 37,600 units in March, a year-on-year increase of 147.6%. The cumulative sales in the first quarter were 73,800 units, a year-on-year increase of 155.5%. Its market share jumped from 0.9% in the same period last year to 2.1%, ranking among the mainstream brands.

In the first quarter of this year, Chery exported more than 90,000 vehicles in Europe, a year-on-year increase of 170%. It has now entered the markets of 18 European countries. According to data from the British Automobile Manufacturers and Traders Association (SMMT), the Jaecoo 7 became the best-selling new car in the UK in March with monthly sales of 10064 units. This is the first time that a China model has won the UK monthly sales list.

SAIC Motor also announced that MG sold more than 90,000 vehicles in the European market in the first quarter, a year-on-year increase of 20%.

Zero running has become the dark horse with the strongest growth rate. In the first quarter, zero-running tram sales in Europe reached 18246 units, a year-on-year increase of 846.37%, and its market share jumped from 0.4% a year ago to 4%. Among them, a total of 11637 units have been licensed in Italy, accounting for 33.5% of the local pure electricity market. The zero-running T03 has become the first China brand to enter the top three sales models in the European mainstream market.

Agencies have also raised their forecasts for European tram sales this year. According to data from CITIC Construction Investment, tram sales in nine European countries in March were 413,100 units, a year-on-year increase of +43% and +81% month-on-month, and a penetration rate of 32.9%,+7.4 percentage points year-on-year and +2.0 percentage points month-on-month; Since March, the UK, France and Germany have experienced significant sales stimulus, and sales all exceeded expectations year-on-year. Based on this, the agency raised its forecast for European tram sales in 26 years to 5.42 million units, a year-on-year increase of 35%.

From "products going out to sea" to "ecological roots"

As more and more vehicles enter overseas markets, China car companies are also accelerating from "products going out to sea" to "ecological roots."

Arrow's report believes that the overseas deployment of China car companies is not only to cope with the fierce domestic market competition, but also a strategic choice to actively reduce geopolitical risks and seek more stable and high-value market demand. The development focus of China automobile companies is shifting from purely exporting to promoting localized production, establishing cooperative relationships, and building a localized supply chain ecosystem in key markets.

In April this year, Chery officially opened its first overseas regional operation center in Barcelona, Spain, and simultaneously launched the Spanish Research Institute to fully align with European standards. Recently, Chery announced the launch of a localized production project in South Africa and expects to put its first model into production in 2027. At present, Chery's international talent employees have exceeded 20,000, of which 85% are localized employees.

BYD's Hungarian passenger car factory plans to officially mass production in the second quarter of 2026. At present, BYD has installed complete vehicle factories in Thailand and Brazil, and factories in Hungary and Indonesia will be put into operation in April 2026, forming a localized manufacturing system covering Asia, Europe and Latin America.

In Spain, the zero-running B10 is scheduled to be officially mass-produced in October this year, and localized production accounts for about 1/4 of B10 sales in Europe. In 2025, zero-run exports will reach 67,000 vehicles, ranking first among the new forces. As of the end of February 2026, the cumulative exports have exceeded 100,000 vehicles. Through its joint venture with Stellantis, Zero Run International has established approximately 900 sales outlets in approximately 40 international markets including Europe, the Middle East, Africa, South America and Asia Pacific.

Earlier, Zhu Jiangming said in an interview with China Business News that from the perspective of global electrification, Global Content Delivery has given China's automobile industry many opportunities, and rising oil prices have also made the market demand for electric vehicles greater. Zero Run believes that localization is the only way for China car companies to go global, and the company will set up localized production capacity in other European countries.

Chang 'an Automobile released the "Heine-Inclusive Plan 2.0" at the Beijing Auto Show, announcing that it will invest 100 billion yuan of strategic resources in the next five years to achieve a coordinated layout of the global industrial chain and deeply cultivate the local area. The company plans to build 800,000 overseas production capacity by 2030. At present, the Rayong factory in Thailand has been put into operation, and the Brazilian factory has also been put into operation in March this year.

How to achieve high-end breakthroughs

Although the structural window period in the European market has provided unprecedented opportunities for China car companies, a truly global car company not only requires a large amount of export volume, but also needs the resilience of internal supply chains, improved brand bargaining power, and ability to resist risks in response to sudden disturbances in geopolitical and trade policies.

Zhang Yichao, partner of Arrow's automotive and industrial products consulting business in Greater China, said: "Under the dual effects of overcapacity and functional homogenization, China's auto market has fallen into a fierce price 'involve'. Many automobile companies have turned overseas to find new growth space, first testing the water through exports, and then gradually implementing localized production. However, there is still a gap between ideals and reality. Different countries and regions have huge differences in labor regulations, management methods and supply chain ecology. It is not easy to go out to sea."

Overseas profitability is the most direct challenge. At present, the overseas business of the vast majority of China car companies is still in the stage of "making no money or making small profits". The initial investment in building factories, channels, brand marketing and after-sales networks is extremely huge, while external costs such as tariffs, logistics, and exchange rates continue to rise.

The construction and operation of overseas factories such as BYD's Hungarian factory, zero-run Spanish factory, and Chery's Spanish base means considerable capital expenditures. Before achieving economies of scale, these upfront investments will put certain pressure on the profit statements of car companies in the short term. How to find a balance between rapid volume increase and maintaining reasonable profits is a strategic choice that every China brand must face.

In addition, although the market share of China brands in Europe has increased rapidly, most consumers 'perception of China brands still remains at the level of "cost performance", and there is still a clear gap between brand premium capabilities and traditional European brands.

Cui Dongshu also said in an interview with First Finance and Economics,"Under the pressure of price constraints, the high-end transformation of China automobile companies is at a critical stage of product exploration, technology foundation, and brand climbing. Currently, price ranges and configuration levels have been achieved. High-end, but brand premium, global awareness and systematization capabilities are still insufficient, and no high-end brand barriers have been formed in the true sense."

Arrow's above-mentioned report surveyed 1002 automakers, first-tier suppliers and technology industry executives around the world. The survey results show that China automobile companies are focusing on strengthening brand building and customer experience, and giving full play to their advantages in the field of smart vehicle research and development.

Cui Dongshu also said that in the future, the high-end breakthroughs of China brands overseas will mainly focus on three directions: "First, build irreplaceable core technical barriers such as 800V high-voltage, solid-state batteries, and high-end smart driving; Second, get rid of the cost-effective label and create an independent high-end brand image and the mentality of global users; Third, improve the compliance system, localized supply chain and service network, and realize the upgrade from product going to the globalization of the full value chain."

The Arrow report pointed out that South America and Australia are important incremental markets for China car companies in the short term. Local brand barriers in these regions are weak and price sensitive; while Southern Europe is the key "bridgehead" to enter the European market. The key to the success of future car companies lies in whether they can create user-centered professional product management capabilities similar to the mobile phone industry.

Source: First Finance and Economics

[Disclaimer] The content of this website (including pictures and texts) originates from the Internet, and the copyright belongs to the original author. Respect the rights and interests of originality, and select content is only used for information sharing. If copyright disputes are involved, please contact us to handle them promptly