In the first half of this year, China’s automotive exports delivered an impressive performance — with 3.083 million vehicles exported, representing a year-on-year increase of 10.4%. Behind these numbers lies the strong global market penetration of Chinese automakers. Especially in the new energy vehicle sector, with 1.06 million units exported and a surge of 75.2%, it has directly broken into the global market, becoming the undisputed growth engine. The global automotive landscape is undergoing a major shakeup, and Chinese automakers are not sitting idly by. Technological innovation serves as the spearhead penetrating the market, while localization strategies act as the shield securing their foothold. With both approaches in tandem, emerging markets like Mexico and the United Arab Emirates have been swiftly conquered, while traditional strongholds have been deeply cultivated into “fortresses.” This is not merely incremental growth; it is a powerful rewriting of the global automotive industry’s competitive landscape — Chinese automakers are redefining the rules of the game.
The turbulent changes in the global automotive market have sparked a thunderclap in the first-half export data. According to media statistics for the first half of 2025, the top three destinations for Chinese automotive exports have been completely overturned. — Mexico topped the list with 234,500 units, followed closely by the UAE with 214,300 units. Russia, which had dominated the top spot for years, saw its exports plummet by 59.2% year-on-year to 171,000 units, dropping to third place.
Mexico’s sudden rise has been the most significant driving force. As the first Chinese automaker to penetrate the Latin American market, it has precisely targeted the local market with models like the Seagull and Song PLUS DM-i, firmly capturing consumers’ appetite for high-value-for-money electric vehicles. With a market share surge of 3.2 percentage points in just six months, BYD has become the most disruptive force in Mexico’s automotive market. More importantly, this breach in the North American Free Trade Agreement’s strategic gateway effectively opens a direct channel for Chinese automakers to penetrate the heart of the North American market.
The 58.5% surge in the United Arab Emirates has directly highlighted the strategic value of the Middle East market. As the largest automotive import hub in the Middle East, this explosive growth is the result of Chinese automakers collectively “targeting” the region: exports to Saudi Arabia and the United Arab Emirates surged by 67% in the first half of the year, driven by deep partnerships with local dealers, turning Chinese new energy vehicles into regional bestsellers. The market is being reshaped by Chinese new energy vehicles — the robust performance of long-range batteries in high temperatures has convinced local consumers.
In contrast, the Russian market has suffered a cliff-like collapse. Soaring car loan interest rates and increased import taxes on whole vehicles have driven up purchasing costs by 18%, effectively halving demand. What’s worse, the high inventory that Chinese automakers had previously stockpiled in Russia has become a hot potato, with some brands seeing their inventory turnover rates plummet by 40%, leaving them stuck in a tough spot. However, BYD has remained resilient, using local factories to avoid tariffs and managing to gain 1.5 percentage points of market share against the trend, becoming a rare bright spot in this downturn.
Other markets are experiencing a stark contrast. Kazakhstan emerged as the biggest dark horse with a 105% increase, driven by smooth China-Kazakhstan logistics and full-scale local assembly plants; mature markets like the UK and Australia are steadily progressing, with BYD and Great Wall leveraging EU certifications to steadily gain market share; meanwhile, Brazil’s 7.9% decline starkly exposes the economic volatility in South America’s impact on the automotive market.
The strong performance of Chinese automobile exports is fundamentally the result of collective efforts by leading automakers. In the first-half export rankings, domestic brands demonstrated an overwhelming advantage, occupying eight of the top ten positions, with Chery and BYD forming the “first tier” and pulling ahead significantly.
Chery Automobile continued to lead with 544,900 units exported, though its 3.5% year-on-year growth rate was somewhat modest. However, its deep overseas roots remain solid. As a veteran of China’s automotive exports, Chery has established over 10 production bases and a comprehensive sales network in regions such as Russia, the Middle East, and Latin America, with an average localization rate of 65%. Despite the overall decline in the Russian market, Chery maintained a 12% market share thanks to the steady performance of its Tiggo series SUVs. The core of its overseas strategy lies in “global expansion combined with regional deepening,” leveraging localized production in countries like Iran and Brazil to effectively circumvent trade barriers. This model has become a benchmark for Chinese automakers expanding overseas.
BYD emerged as the standout performer with 443,100 units sold and a year-on-year increase of 118.2%, driven by the deep integration of technological barriers and global expansion. Leveraging core technologies such as blade batteries and DM-i super hybrid systems, BYD has established a differentiated competitive edge in overseas markets — the Song PLUS entered the top three in Mexico’s SUV sales rankings within its first month of launch, while the Tang EV, priced over 40,000 euros in Europe, continues to attract a significant number of orders. What is even more noteworthy is that BYD is building an independent and controllable global supply chain. It has not only established localized production bases overseas but also formed its own shipping fleet. In the first half of the year, it reduced logistics costs by approximately 15% through its own shipping fleet, effectively offsetting the impact of high tariffs in Europe and the US.
Among traditional manufacturers, SAIC Passenger Vehicle ranked third with 242,600 units sold, but a 4.1% year-on-year decline exposed challenges. Its main export brand, MG, faces dual pressure from Tesla and Volkswagen in the European market, with sales declining by 8% year-on-year in the first half of the year. However, SAIC’s transition to new energy is showing results, with the MG4 EV consistently ranking among the top ten in pure electric vehicle sales in the UK, Germany, and other regions, becoming a key pillar of the brand’s recovery. Geely Automobile maintained steady growth with 182,000 units sold and a 7.4% increase, leveraging its brand portfolio of Volvo and Lynk & Co to deepen its presence in the European market. The Lynk & Co 09 secured orders in the Nordic region thanks to its safety performance certifications, while its locally produced factories in Southeast Asia have achieved full capacity.
At the other end of the spectrum, the divide between new and established players has widened. Tesla China exported 101,100 units, a year-on-year decline of 31.9%, reflecting the impact of Chinese new energy vehicle brands on its market share. Among joint-venture brands, Beijing Hyundai emerged as a “dark horse” with a year-on-year increase of 248.4%, though its export volume of 34,800 units is not large, it signifies that joint-venture brands are beginning to use China as a production base to radiate globally. Jiangsu Yueda Kia also demonstrated with a 20.6% growth rate that, despite pressure in the domestic market, exports have become a new growth point for joint-venture brands.
The rapid growth of China’s automotive exports reflects a fundamental transformation in industrial competitiveness. Over the past decade, Chinese automakers have transitioned from being known for “cost-effectiveness” to becoming “technology leaders,” achieving leapfrog development. In battery technology, CATL and BYD’s blade batteries have achieved an energy density 15% higher than the industry average. In intelligent driving, systems like Xpeng’s XNGP and Huawei’s ADS 2.0 have achieved city navigation assistance capabilities on par with Tesla’s FSD. These technological breakthroughs not only support the export advantages of new energy vehicles but also drive the transformation of traditional fuel vehicles toward hybridization, creating comprehensive competitiveness across all vehicle categories.
Upgrading localization strategies has become the key to breaking through the impasse. Chery’s factory in Brazil achieves 70% localization of parts procurement, BYD’s production base in Thailand has an annual production capacity of 150,000 vehicles, and Geely’s collaboration with Proton in Malaysia has achieved localized brand operations… This model of “not simply exporting products but exporting the entire industrial chain” enables Chinese automakers to maintain growth resilience amid rising trade protectionism. In the first half of the year, vehicles produced locally overseas accounted for 38% of total exports, an increase of 10 percentage points from last year.
However, challenges in the global market remain severe. The advantages of international automakers in brand heritage and high-end market Layout are difficult to shake in the short term, and companies like Volkswagen and Toyota have established dealer networks in Southeast Asia and Latin America over decades. Trade barriers remain a significant obstacle, and the EU’s upcoming “carbon tariff” could increase the export costs of Chinese electric vehicles by 8%-12%. Additionally, policy fluctuations in certain markets (such as tax adjustments in Russia) and supply chain stability issues (such as chip shortages) continue to test the global operational capabilities of Chinese automakers.
From the streets of Mexico to the highways of Europe, Chinese automobiles are emerging as disruptors, reshaping the global mobility landscape. The first-half export figure of 3.083 million vehicles is not merely a cold statistic but a testament to the industry’s hard power. The substantial investments in R&D by companies like BYD and Chery are driving even more aggressive growth—this year’s export target of over 6.5 million vehicles is already a foregone conclusion, and the 40% share of new energy vehicles is a dominant presence. As the global automotive industry undergoes a shakeup, Chinese automakers have already broken free from the constraints of being mere followers. They are now using cutting-edge technology and global expansion to forcibly claim the throne of leaders on the world stage, rewriting the rules of the game with their strength.
