BYD cars waiting to be exported. Credit: ABCmais Understand China EV’s Market Real-time notifications when critical EV data is released All important data in one place 2,000,000+ data points Become a member China’s monthly vehicle exports exceeded 1 million units for the first time in June 2026. According to the latest data released by the China Association of Automobile Manufacturers (CAAM) on July 9, China exported 1.037 million vehicles in June, marking an 11.6% increase month-on-month and a 75.1% surge year-on-year, as reported by the Chinese newspaper Economy Observer. For the first half of 2026, China’s total vehicle exports reached 5.096 million units, a year-on-year growth of 65.3%. This performance has far exceeded industry expectations. At the beginning of the year, CAAM had projected total exports for 2026 to reach 7.4 million units, representing a conservative growth of 4.3%. The association noted that while the domestic market has faced significant pressure with double-digit declines in sales, the export sector has provided a stable pillar of support for the industry. The export momentum has been building steadily. After China became the world’s leading auto exporter by surpassing Germany and Japan, annual export volumes grew from 4.91 million units in 2023 to 7.1 million units in 2025. Despite a slowdown in growth rates in recent years, 2026 has seen a resurgence, with year-on-year monthly growth rates climbing from 45% in January to 75% in June. New energy vehicles lead the chargeA significant structural shift was observed in June, as New Energy Vehicle (NEV) exports reached 523,000 units – a 1.6-fold increase year-on-year. For the first time, NEVs accounted for over 50% of total monthly exports, meaning every second vehicle exported from China is now an NEV. In the first half of the year, NEV exports totalled 2.355 million units, up 1.2 times year-on-year, accounting for 46.2% of total vehicle exports. Future ChallengesCui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), attributed this success to several factors: Supply side: China’s complete NEV supply chain, combined with cost advantages in battery, motor, and electronic control systems, allows for manufacturing costs that are highly competitive globally. Advanced technologies like 800V charging, integrated die-casting, and proprietary battery tech have allowed Chinese vehicles to command a premium of approximately 10% in the European market. Product side: Chinese automakers have successfully filled the market gap left by the slow electrification transition of traditional global giants like Volkswagen and Toyota, offering features such as fast charging and intelligent driving systems that meet global demand. Demand side: Major growth is coming from ASEAN, the Middle East, and Russia. Data from the International Organisation of Motor Vehicle Manufacturers (OICA) shows that in the first five months of 2026, vehicle demand grew by 35% in Vietnam, 15% in Thailand, and 10% in Russia. Despite the record-breaking figures, experts warn of potential headwinds. Cui noted that factors such as the EU’s carbon tariffs and anti-subsidy investigations, combined with a high base from the second half of 2025, suggest that growth may moderate from its current rapid pace to a more stable trajectory for the remainder of the year.