China's car exports surge as expectations grow for EV pivot on Iran war
energy shock
[April 10, 2026] By
CHAN HO-HIM
HONG KONG (AP) — China’s exports of passenger cars accelerated in March,
an industry association said Friday, as Chinese automakers stepped up
their push to grow overseas markets.
Passenger car exports jumped 82.4% year-on-year last month to around
748,000 vehicles, according to the China Association of Automobile
Manufacturers, up from the 586,000 vehicles exported in February.
Exports of new energy passenger vehicles — including battery electric
vehicles and plug-in hybrids — surged more than 140% in March from a
year ago to 363,000 units. That’s also up 31% from the about 276,000
units of such vehicles exported in February.
The biggest Chinese automakers, including BYD and Geely Auto, have been
increasing their efforts in boosting sales abroad, including expanding
production facilities outside China. There have also been growing
expectations that the global energy shock and higher fuel prices due to
the Iran war could prompt more drivers to want to switch to EVs.
Chinese car brands have made inroads over the past months in regions
such as Europe, Latin America and Southeast Asia.
“The impact of the Iran conflict hasn’t fully shown up in March data
yet, but it can act as a trigger,” said Chris Liu, a Shanghai-based
senior analyst at advisory group Omdia.
“In many markets that are structurally well suited for EVs, adoption has
been slow simply because consumers lacked urgency," he said. “A sharp
rise in fuel prices changes that.”
The Chinese carmakers’ strong overseas push also came at a time when
domestic vehicle sales in China have come under pressure from
scaled-back government support this year to encourage drivers to switch
to new energy vehicles.
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BYD's electric vehicle ATTO2 is on display during the Bangkok Motor
Show in Nonthaburi, Thailand, Wednesday, April 1, 2026. (AP Photo/Sakchai
Lalit)
 Fierce competition in China among
car brands and a prolonged property sector slump that has weighed on
consumers' desire for big purchases also impacted Chinese
automakers.
Domestic passenger car sales fell 19.2% last month from a year
earlier to nearly 1.7 million units. It was the fifth consecutive
month of year-on-year declines for passenger car sales at home,
based on data from the China Association of Automobile
Manufacturers.
UBS auto analyst Paul Gong believes that the domestic sales weakness
will not be too long lasting and that the surge in overseas sales
among Chinese carmakers could help with the weaker demand at home.
“For the overall industry, the overseas market’s sales volume growth
is more than enough to offset domestic decline on a full-year
basis,” said Gong, head of China autos research at UBS investment
bank.
Overseas passenger car sales by units for Chinese automakers might
grow by 20% or more this year compared with last year, he predicted.
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