China passenger car exports rose 73 percent in May

China’s passenger car exports increased 73 percent in May from a year earlier to roughly 809,000 vehicles, according to data released by an industry group. The China Association of Automobile Manufacturers reported that shipments of pure electric vehicles and plug-in hybrids more than doubled to about 435,000 units, accounting for more than half of total exports.

Domestic sales decline Domestic passenger car sales dropped 23.4 percent year-on-year to 1.44 million vehicles in May, marking the seventh consecutive month of declines. Sales of internal combustion engine vehicles fell nearly 42 percent as the share of electric vehicles increased.

Chinese automakers have expanded overseas shipments to markets in Latin America, Asia, and Europe amid weaker domestic demand linked to reduced government incentives for electric vehicle purchases.

Export forecasts An analyst at UBS said high oil prices have increased interest in electric vehicles and noted that China’s car exports exceeded expectations in the first months of the year. The same analyst projected annual passenger car exports could rise about 40 percent in 2026, with electric vehicle exports possibly increasing 80 percent.

An analyst at S&P Global Ratings forecast year-on-year export growth between 30 percent and 50 percent for 2026. The International Energy Agency stated that electric vehicle sales could reach 23 million units and comprise nearly 30 percent of global car sales this year.