BEIJING, Sept 8 (Reuters) – China’s car exports stayed robust in August as BYD and other automakers shipped a record number of vehicles overseas, in sharp contrast to a sluggish domestic market where their sales fell for the 11th month in a row.
Passenger vehicle exports jumped 77.5% from a year earlier to 894,000 units in August, easing from an increase of 88.2% a month earlier, data from the China Passenger Car Association showed on Tuesday.
Sales at home fell 23.7% to 1.55 million vehicles, worsening from a decline of 21.1% in July.
Electric vehicle and plug-in hybrid sales, accounting for 64.7% of total domestic sales, shrank 10.1% on year in August, widening a 3.9% drop a month earlier. Meanwhile, export growth in the segment accelerated to 154.7% from 147.8% in July.
As weakness persisted in the world’s largest auto market, Chinese automakers intensified their overseas expansion efforts, with BYD and Geely Auto hitting fresh export records last month.
Even as trade restrictions tighten, Chinese carmakers have continued to gain traction overseas, expanding their presence in Europe and winning customers in emerging markets with competitively priced, technology-rich models.
China’s vehicle exports are forecast to reach 12 million units this year, according to Cui Dongshu, secretary-general of the China Passenger Car Association (CPCA). Annual exports are expected to climb further to between 18 million and 20 million units by 2030, he said.
Among those looking abroad is Xiaomi. The EV latecomer, which is scrambling to meet its annual sales target, has signed agreements with German auto dealers ahead of its planned European launch next year.
Seres, which co-develops Aito cars with Huawei, illustrates the growing cost of lagging in the export race. The company faces intensifying competition in China’s crowded premium EV segment, while its relatively late push overseas has left it at a disadvantage at a time when exports are becoming a key source of growth. Its total vehicle sales plunged 44% last month.
The export boom has raised regulatory concerns that the cut-throat competition battering carmakers, suppliers and dealers domestically could spread to overseas markets.
Last week, Chinese regulators issued new guidelines for automakers’ overseas operations, warning against frequent or steep price cuts and other non-compliant practices that could harm consumers or tarnish brand reputations.
Major automakers, including BYD, Chery and Geely Holding, have pledged compliance with the new guidelines, although regulators have yet to specify penalties for violations.
(Reporting by Qiaoyi Li, Zhang Yan and Ju-min Park; Editing by Stephen Coates and Muralikumar Anantharaman)
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