China’s car market jumps 85% in April

लगानी न्यूज

२९ बैशाख २०८३, मंगलवार १४:२८May 12, 2026

. China’s automakers are aggressively expanding on exports.

China’TAG_OPEN_div_50 s passenger car exports jumped nearly 85 percent in April. China’s auto industry has gained momentum through exports, especially as demand for electric and new energy vehicles grows rapidly in the global market.

According to data released by the China Association of Automobile Manufacturers (CAAM), 796,000 passenger vehicles were exported from China in April.TAG_OPEN_div_48 This is almost 85 percent more than the same period last year. April’s exports were higher than the 7.48 lakh vehicles exported in March, the data showed.

There has been a rapid increase in the number of new energy vehicles. Exports of new energy passenger vehicles, including battery-powered electric vehicles and plug-in hybrids, surged more than 120% to nearly 420,000 units in April. Rising prices of petroleum products in the global market and attraction towards environment-friendly technology have contributed to increasing demand for Chinese electric vehicles.

But the situation in the domestic market has been disappointing. Passenger car sales in China fell 25.5 percent year-on-year to 1.3 million units, according to CAAM. This is the sixth consecutive month of decline in car sales on a year-on-year basis.

According to analysts, the government’s subsidies and subsidies for the purchase of new energy vehicles are the main reasons for the weak domestic demand.TAG_OPEN_div_42 At the same time, the long-standing real estate slowdown and uncertain economic conditions have also made consumers wary of buying new vehicles.

Competition within the Chinese auto industry is also intensifying.TAG_OPEN_div_40 More than 1,450 vehicles were on display at the Beijing Auto Show last month. During the event, new technologies ranging from smart cars to ultrafast charging batteries were unveiled. This indicates that China’s automakers are moving aggressively in technology and innovation.

Some analysts expect the domestic market to improve in the second half of the year.TAG_OPEN_div_38 Yicchao Zhang, automotive practice partner at consultancy AlixPartners, said more new models are set to hit the market this year, and new vehicle purchases are likely to increase as consumers get used to changes in government subsidy structures.

In the overseas market, the influence of Chinese brands is spreading significantly.TAG_OPEN_div_36 Major Chinese companies such as BYD and Geely Auto are expanding their presence in various regions, including Europe, Latin America and Southeast Asia. Not only exports, some companies have also started setting up factories to expand their production capacity abroad. In particular, BYD has expedited plans to build manufacturing facilities in Europe and Latin America.

Global interest in electric vehicles is expected to increase as petrol prices rise in the international market due to the war with Iran.TAG_OPEN_div_34 According to the Federal Chamber of Automotive Industries of Australia, one in six new vehicles sold in April was electric. BYD has become the second best-selling brand after Toyota.

Claire Yuan, an auto analyst at S&P Global Ratings, said that oil and fuel prices are likely to remain high for a long time, which will encourage consumers to buy electric vehicles.TAG_OPEN_div_32 According to him, this will directly benefit Chinese electric vehicle exports.

AlixPartners expects China’s overall passenger car exports to grow by about 20 percent in 2026.TAG_OPEN_div_30 Exports are expected to continue to grow as Chinese auto companies aggressively expand into emerging markets, including Southeast Asia.

Meanwhile, Beijing is also in talks with the European Union (EU) and Canada on the import of Chinese electric vehicles.TAG_OPEN_div_28 The auto industry is keenly watching trade talks between Trump and Chinese President Xi Jinping during US President Donald Trump’s visit to Beijing this week.

The United States, on the other hand, is taking a tough defensive policy against Chinese electric vehicles.TAG_OPEN_div_26 Chinese automakers’ access to the US market has been effectively blocked since former President Joe Biden’s administration imposed 100 percent tariffs on Chinese electric vehicles in 2024.