China's car exports jump 85% in April amid weak home sales

China's passenger car exports surged in April as domestic demand continued to slide, according to the China Association of Automobile Manufacturers. The country shipped around 796,000 vehicles abroad last month, up nearly 85% from April 2024 and ahead of March's 748,000 vehicles.

Electric vehicles and plug-in hybrids led the export boom. Sales of new energy passenger vehicles jumped more than 120% to about 420,000 units. Chinese brands like BYD and Geely Auto are expanding rapidly overseas and building factories in Europe and Latin America to meet growing global demand.

Inside China, the picture looked very different. Passenger car sales fell 25.5% year-on-year to 1.3 million vehicles, marking six straight months of decline. The domestic weakness stems from reduced government subsidies for electric vehicle buyers and uncertainty in the broader economy tied to the struggling property sector.

Competition between Chinese carmakers has intensified sharply. At April's Beijing auto show, manufacturers displayed more than 1,450 vehicles showcasing artificial intelligence features and advanced charging technology. Some analysts expect domestic sales to improve later this year as consumers adjust to subsidy changes and new models reach dealers.

Global demand for electric cars appears strong. In Australia, one in six new vehicles sold in April were electric, with BYD ranking as the second-highest-selling brand behind Toyota. Rising fuel prices worldwide are expected to push more drivers toward EVs. "This will benefit Chinese EV exports," said Claire Yuan, an auto analyst at S&P Global Ratings. AlixPartners estimates Chinese passenger car exports could rise around 20% in 2026, with Southeast Asia among the key growth markets.

Trade friction with the United States remains a barrier. Chinese electric vehicles face a 100% tariff imposed in 2024 and are effectively blocked from the American market. China has made progress negotiating EV imports with the European Union and Canada. Industry watchers are monitoring trade discussions between U.S. President Donald Trump and Chinese leader Xi Jinping scheduled for this week in Beijing.