China’S Car Export Growth Faces New Trade Realities

(MENAFN- The Rio Times) China's auto industry posted a 16% increase in vehicle exports in the first quarter of 2025, shipping 1.54 million units abroad, according to the China Passenger Car Association. This growth signals China's continued push to expand its automotive reach, even as global trade winds shift.

Chinese automakers found their strongest overseas demand in Mexico, the United Arab Emirates, Russia, Saudi Arabia, Belgium, Australia, Brazil, the United Kingdom, the Philippines, and Turkey.

Mexico alone imported over 138,000 Chinese vehicles in the first three months of 2025. The United Arab Emirates and Russia followed with more than 100,000 and 99,000 units, respectively.

These figures highlight China's strategic focus on emerging markets, especially as trade barriers rise in the US and Europe. New energy vehicles (NEVs)-including electric and hybrid models-drove much of this export momentum.

NEV exports soared 43.9% year-on-year, totaling 441,000 units in the first quarter. Chery and BYD led the way. Chery exported 254,000 vehicles, holding 17.9% of the export market. BYD shipped 214,000 units, more than doubling its exports from the previous year.



China's domestic market also expanded. In March 2025, automakers produced 3.01 million vehicles and sold 2.92 million, up 11.9% and 8.2% year-on-year, respectively.

However, sales of traditional fuel vehicles dropped 5.4% in the first quarter, while NEVs continued to rise. Trade tensions now shape the industry's outlook.
Tariffs Disrupt Auto Trade as China Shifts Strategy
The United States and China imposed new tariffs in April 2025, which immediately impacted cross-border car flows. Ford, for example, halted exports of US-made vehicles to China as tariffs reached 150%.

China responded by warning it would retaliate against countries aligning with US trade restrictions. Industry forecasts suggest China's vehicle export growth will slow to 5.8% in 2025, down from nearly 20% last year.

Analysts attribute this to rising tariffs and shifting global demand. Chinese automakers now pivot toward hybrid vehicles and emerging markets to avoid the brunt of Western trade barriers.

Despite these challenges, China's automakers continue to invest in technology. Smart cockpit features now appear in 73% of new Chinese vehicles, outpacing the global average.

The sector's ability to adapt to new trade realities and consumer preferences will determine its next phase of growth.

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