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Chinese carmakers go local to grow globally

From overseas-based production to reviving factories, companies take new approaches

By LI FUSHENG | CHINA DAILY | Updated: 2026-03-17 07:21
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A large number of vehicles await loading for export at Longtan Port in Nanjing, Jiangsu province, on Sept 11. FANG DONGXU/XINHUA

Automakers in China are expanding their reach overseas more than ever — and increasingly, they are no longer just shipping cars.

Last year, China exported 7.09 million new vehicles, up 21.1 percent year-on-year, making the country the world's largest vehicle exporter for three years on end, according to the China Association of Automobile Manufacturers.

China-made vehicles, from not only Chinese marques like Chery and BYD but also from global brands including Tesla, Ford, Hyundai and Chevrolet, are now seen across markets ranging from Southeast Asia and South America to Europe and the Middle East.

A major driving force of China's exports has been new energy vehicles, whose exports last year accounted for 2.61 million units, doubling from a year earlier and making up more than 37 percent of total exports, said the CAAM.

The association expects NEVs to drive China's vehicle exports further to 7.4 million units this year.

Behind the headline numbers, however, a deeper shift is underway.

Traditional trade-driven vehicle exports are fast evolving into a far more complex form of globalization — one that includes overseas sales, manufacturing, localized supply chains, research and development, service networks and, increasingly, cooperation with international automakers to rebalance global production capacity.

For China's automakers, going overseas is no longer a strategic option but a structural necessity, said Zhang Yongwei, president of China EV100, a Beijing-based industry think tank.

"One market, even as big as China's, is limited," he explained.

Last year, China's overall vehicle market hit a record 34 million units, leaving limited room for long-term volume growth. The CAAM estimates the Chinese market will grow just 1 percent year-on-year from 2025.

"So, the competition will hinge on who can establish a solid foothold overseas and operate across both domestic and international markets," he said.

Global giants have set an example. Toyota, the world's No 1 carmaker, has a combined production capacity of around 10 million vehicles a year, with only 3.4 million made in Japan. Volkswagen AG, the second-largest car group, at its peak, produced 40 percent of its global sales in China.

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