Chinese automakers are increasingly relying on overseas markets to offset domestic challenges, with first-half 2026 results revealing significant growth in exports despite weaker sales and intensified competition at home.

BYD exemplified this trend, reporting a 33.9 percent rise in overseas revenue to 181.27 billion yuan ($27 billion), which accounted for over half (52.6 percent) of its total revenue during the period. In contrast, its domestic revenue declined by 30.7 percent. The company’s exports surged 67.8 percent to nearly 792,000 vehicles, representing close to 44 percent of its total new energy vehicle (NEV) sales of 1.81 million units. BYD highlighted exports as a key driver of its high-quality development.

Chery Automobile demonstrated even greater reliance on foreign markets, with overseas vehicle sales rising 71.5 percent to 943,800 units, making up roughly 70 percent of its total sales. Correspondingly, its overseas revenue increased 51 percent to 98.97 billion yuan, boosting the contribution of these markets to 69.1 percent of overall company revenue, up from 46.3 percent a year earlier.

Geely Automobile showed the fastest overseas sales growth among its peers, with exports climbing 158 percent to 474,228 vehicles, surpassing its full-year 2025 export target in the first half. Notably, its NEV exports reached 277,189 units, representing an almost sevenfold increase.

Great Wall Motor also reported robust international performance, with overseas revenue rising 56.8 percent to 56.29 billion yuan and overseas sales growing 45.5 percent to 289,016 units, exceeding domestic sales for the first time.

Other manufacturers followed this pattern: Changan Automobile increased overseas revenue by 78.8 percent to 21.94 billion yuan, while GAC Group more than doubled its overseas revenue to 14.01 billion yuan.

Industry data reflect a broader acceleration in vehicle exports from China, which totaled 6.14 million units during the first seven months of 2026, an increase of 66.8 percent year-on-year, according to the China Association of Automobile Manufacturers (CAAM). NEV exports more than doubled to 2.91 million units. July alone saw exports of 1.04 million vehicles, up 81.3 percent, including 553,000 NEVs, which rose by 150 percent.

Chen Shihua, deputy secretary-general of the CAAM, noted that strong export growth has effectively offset downward pressures in the domestic market and become the primary driver of volume gains in the first half.

However, increased sales volume has not translated into higher profitability. BYD’s net profit dropped 20.5 percent in the first half, while Great Wall and Changan experienced net profit declines of 61.1 percent and 64.3 percent, respectively. Chery’s attributable profit fell 11.7 percent. Industry margins remain slim, with CAAM’s Liu Zheng reporting a profit margin of just 3.4 percent in the first five months of the year. He attributed the squeeze on automakers to intense price competition and rising raw-material costs, with earnings increasingly shifting toward suppliers of intelligent-driving technologies and downstream marketing platforms.

Cui Dongshu, secretary-general of the China Passenger Car Association, emphasized that sustainable improvement depends on producing higher-quality products and increasing the proportion of higher-margin models in overseas markets.

Supporting this strategic shift, China’s Ministry of Commerce, Ministry of Industry and Information Technology, and State Administration for Market Regulation jointly issued a guideline on Tuesday aimed at enhancing the industry’s overseas competitiveness and compliance. The directive calls for cost-based pricing, product adaptation, after-sales services, and adherence to data regulations, measures designed to safeguard Chinese brands as their international operations become more established.