As a domestic car sales slump continues, China’s automakers lean on exports

China’s passenger car exports surged 64% in September from the same month in 2025, an industry association reported Monday, as Chinese automakers increasingly focus on exports to drive growth amid sluggish domestic sales. China exported around 919,000 passenger vehicles in September, lifted by overseas demand for plug-in hybrids and pure electric vehicles, data from the China Association of Automobile Manufacturers showed. In the first nine months of 2026, China exported over 7.1 million passenger cars, up more than 70% from the same period last year. Meanwhile, domestic passenger car sales in China fell for most of the year as automakers faced weaker consumer confidence at home and scaled-back government subsidies. They fell 27% year-on-year in September to over 1.6 million units, according to the association. China is the world’s largest vehicle exporter, but is facing increasing skepticism from trade partners who fear it’s undermining their domestic industries and trade balance. The EU is capping Chinese hybrid vehicle imports at 350,000 a year, officials say. Chinese car sales grow in regions including Europe In recent months, Chinese automakers have more aggressively targeted…