China’s EV Exports Drop 10.4% in 2024 Amid Tariff Pressures and Market Shifts

Credit: BYD

China’s vehicle exports are expected to increase by 5.8% to 6.2 million units in 2025, a sharp slowdown from the 19.3% growth seen in 2024, according to data from the China Association of Automobile Manufacturers (CAAM) released on Monday. The anticipated decline in export growth contrasts with a slight uptick in domestic vehicle sales, with extended policy incentives expected to support the world’s largest auto market.

The CAAM did not provide a breakdown of export estimates by engine type but noted that electric vehicle (EV) exports saw a 10.4% decline last year, while plug-in hybrid vehicle exports surged by 190%.

This slowdown follows an 80.9% rise in EV exports in 2023, indicating the impact of additional tariffs on China-made EVs introduced by the European Union in October 2024. In response, Chinese automakers have shifted focus to hybrid vehicle exports to Europe to mitigate the impact of the new tariffs.

Domestic vehicle sales in China are forecast to rise by 4.7% to 32.9 million units in 2025, following a 4.5% increase in 2024. Sales of new energy vehicles (NEVs), which include EVs and plug-in hybrids, are expected to grow by 24.4% this year, down from a 35.5% increase in 2024.

CAAM official Xu Haidong attributed the slower growth to weak domestic demand, heightened competition, and external pressures, although the extension of auto trade-in subsidies into 2025 is expected to provide a boost. More than 6.6 million cars sold in China in 2024 benefited from government subsidies for NEV and fuel-efficient combustion engine vehicle purchases, with subsidies reaching up to $2,800 for NEVs.

Source: Reuters

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