China overtakes Japan as global vehicle export leader
Chinese carmakers, led by BYD and Chery, are reshaping the global auto export market. Vehicle shipments hit record levels in 2024–2025, with EVs accounting for 40% of exports.
Data compiled by McKinsey shows that back in 2019, Japan was the biggest global vehicle exporter, with 4.8m units exported. At this point China exported only around 700,000 vehicles. Fast forward to 2024 and China had become by some distance the world’s largest exporter, with 5.5m units. Forecasts released in July 2025 suggested that Chinese exports could exceed 7m units this year. Japan’s exports by contrast had fallen to 4.2m in 2024.
Unlike the EU, the UK has not imposed additional tariffs on Chinese EVs, and this helps to explain how the UK accounted for 4.6% of China’s June exports against 3.9% for the first six months of the year
A key driver behind rising vehicle exports from China is the number of EVs exported, with 40% of Chinese passenger vehicle exports in 2024 having been EVs. This also coincided with BYD overtaking Tesla as the world’s largest EV manufacturer; BYD sold nearly 4.3m EVs in 2024, versus Tesla’s 1.8m.
Top 10 Chinese vehicle export destination
In June 2025, the top 10 destinations for Chinese exports accounted for 44% of the total. Looking more closely at these, is currently the largest destination market for Chinese-made vehicles; however, under pressure from the US administration, Mexico is raising tariffs on Chinese-made vehicles to 50% and once these are being applied and operationalised, there will almost certainly be a reduction in Chinese exports to Mexico.
The Middle East is becoming an increasingly important destination for Chinese-made vehicles, and we can expect volumes shipped to the UAE and Saudi Arabia to rise steadily; Saudi’s share of Chinese exports in June was higher than for the first six months of the year.
Unlike the EU, the UK has not imposed additional tariffs on Chinese EVs, and this helps to explain how the UK accounted for 4.6% of China’s June exports against 3.9% for the first six months of the year.
By contrast the importance of Belgium, Brazil, Russia, and Australia has fallen, while the relative importance of Kazakhstan and Philippines has risen. It should be noted that Belgium’s position in the top ten may be somewhat illusory since its ports are a key landing point for Chinese exports to a range of EU countries and some of the vehicles exported to Belgium are likely to be destined for other countries.
Which Chinese OEMs are leading the export charge?
In terms of exports by company, Chery was the leading exporter from China in H1/2025, with nearly 545,000 exports, although this was down 3.5% year-on-year; BYD was second, with 443,000 exports, up 118%; SAIC (mostly MGs) was third with nearly 243,000 exports, down 4.1% year-on-year. These were followed by Geely, Great Wall Motor, Changan, and SAIC-GM-Wuling (SGMW). Intriguingly Tesla exports fell by nearly one-third (partly because of European consumers’ reaction to the political involvement and activities of Elon Musk); meanwhile Jiangsu Yueda Kia rose 21% to nearly 86,000 exports and Beijing Hyundai rose nearly 250%, albeit to a modest total of just under 35,000 units.
Other Chinese manufacturers also grew their exports to Europe. For example, Chery was up nearly 177%, SAIC was up a more modest 14%, but new entrant Leapmotor was up by a staggering 740%...
The narrowing of the gap between Chery and BYD in first and second places in 2025 is interesting, not least because the gap was substantial in 2024; last year Chery exported 1.1m units, against BYD’s c400,000, which placed BYD in fourth place, with SAIC and Geely in between. BYD is now approaching Chery in first place, despite the expansion of BYD production capacity outside China.
Growing vehicle exports to Europe
Figures to August 2025 show a continuation and intensification of the above trends. This was especially true for exports to Europe, despite the imposition of additional tariffs by the EU. Some of the increase in exports is due to a switch to PHEVs and HEVs (which do not attract the additional EU tariffs) rather than EVs. During the first eight months of the year BYD recorded year-on-year export growth for Europe of nearly 272% (against just 114% for H1), suggesting that July and August saw a massive increase in exports.
Other Chinese manufacturers also grew their exports to Europe. For example, Chery was up nearly 177%, SAIC was up a more modest 14%, but new entrant Leapmotor was up by a staggering 740%, albeit from a small base to nearly 18,000 units exported in the first eight months of the year. Leapmotor vehicles will soon start production in Spain and whether its exports will sustain the kind of growth rate the brand has experienced so far in 2025 remains to be seen. Also of interest is the 130% year-on-year growth in shipments to Europe from Volkswagen Anhui. The 26,000 vehicles involved here are all Cupra Tavascans, an EV which has been described as essential for SEAT to turn in a profit in Europe this year.
RoW figures show Chinese OEMs differing export success
Looking at other export markets, the companies involved differ somewhat in terms of their strength across the world. The top ten exporters to South-East Asia in the first eight months of 2025 have BYD, Geely and Chery as the top three; they are followed by Changan, Great Wall, Jiangsu Yueda (a Kia JV partner). Interestingly SAIC, the eighth ranked exporter to South-East Asia, saw its export volumes fall by nearly 41% while the other nine companies in the top ten all saw their regional exports rise.
Turning to South America, BYD and Chery are by some way the biggest exporters; indeed, second placed Chery exported nearly twice as many vehicles (c83,000) to the region as the third place Great Wall (42,000). Other Chinese companies with rising export volumes to South America this year include Jiangling, DFSK (which is a brand of the Seres group and formerly affiliated to Dongfeng) and SAIC. Geely, Jiansgu Yueda, SGMW and Changan all saw declining volumes sent to South America in the first eight months of the year.
Exports to the Middle East are also worth commenting on. Chery has been the largest exporter to the region for some time and its exports of just over 177,000 in the first eight months of the year are more than double BYD’s c73,000. However, Chery is down 37%, while BYD is up nearly 158%. Other companies with rising export volumes to the Middle East are Jiangsu Yueda Kia, FAW-Toyota, Great Wall, Southeast Auto (part of Chery, trading as Southeast) and Beijing Hyundai. Jiangsu Yueda was up 25% in the first eight months of year, but the others were all up by at least 100%. Geely – which is strong elsewhere – is not in the top ten exporters to the Middle East.
